I agreed with OTB's sharing and entered AYS at RM0.49, add more on the way. Average buying price is RM0.576.
Thank you OTB. Buying power of this forum is too small comparing with the funds, so do not accuse OTB want to induce you to buy AYS to support the price.
“We expect China’s crude steel production will fall over the long term,” says Steve Xi, a senior consultant at research firm Wood Mackenzie. “As a heavy-polluting industry, the steel industry will remain a key sector in China’s environmental protection work in the next few years.”
"I don't think we've hit the peak for steel prices. Most people in the market see strength through the third quarter, and some don't see it getting better on the buying side until 2022 sometime," Schier says. "It is just that supply is that tight. People are scrambling for material."
Another factor: Consolidation. Two major acquisitions last year by steelmaking titan Cleveland-Cliffs—AK Steel for $1.1 billion and U.S. steel mills from ArcelorMittal for $1.4 billion—has essentially made the steel industry a duopoly. That firm grip by Cleveland-Cliffs and United States Steel Corporation on the market, Schier says, leaves them with little incentive to increase production. After all, creating more supply would only mean their prices would fall.
The other wildcard at play are global supply chains issues. In particular, the chip shortage which is hampering new car production. Once the chip shortage is resolved, the automotive industry is expected to ramp-up. More cars rolling off production lines, means more steel demand.
Ann Joo has become one of the most cost-efficient steel players after it successfully developed and incorporated the hybrid blast furnace-electric arc furnace (BF-EAF) technology into the steel production flow. This BF-EAF technology allows Ann Joo to enjoy better cost control in raw-material input and operational flexibility through adjusting the usage of the feedstock such as iron ore, coke and scrap metal for manufacturing of steel products. The flexibility in switching the ratio of feedstock enables the group to manage the input cost efficiently based on the market-price fluctuation of the raw materials. In addition, the off-gas that is produced during the manufacturing process can be used to support the rolling-mill process instead of using natural gas, which can help further lower total cost of production. Hence, the group has achieved cost leadership through cost optimisation in production, which helps it produce relatively cheaper steel products with better margins in comparison with other domestic players.
Hiaptek and Annjoo enjoy most steel counters can't afford with much lower iron ore price and process it by blast furnace to the custome made steel. This non-stop process result in saving electricity, efficiency and much higher profit margin.
Annjoo put efforts to maximise the use of Blast Furnace Gas for renewable energy generation through its Top Pressure Recovery Turbine.
“We expect China’s crude steel production will fall over the long term,” says Steve Xi, a senior consultant at research firm Wood Mackenzie. “As a heavy-polluting industry, the steel industry will remain a key sector in China’s environmental protection work in the next few years.”
Steel prices in China goes up 4 consecutive days and is almost 2 months high and near the record high.
Due to limitattion of electricity in China, high power usage in steel industry faces more and more factory shutdown problem. This time might be best chances to buy steel stock.
Annjoo exports more than 60% steel products to China.
Kenanga bullshit a lot - nothing said on Iron Ore price decline. Inventory of Annjoo at the end of June maintains the same as end of March. Its pure lie saying inventory usage.
China faces energy shortage and reduce steel production significantly. USA faces steel shortage too. Japan cut steel production since the beginning of 2021
No wonder steel price is at record high price now. Steel stock hits history high level is highly possible now.
Going forward, as generators pass on some rising costs to consumers and raise power supplies, power-hungry industries such as steel, aluminium, cement and chemical producers are expected to face higher and more volatile power costs as previous fixed-cost arrangements are replaced by market-based pricing.
How will output of key metals be affected by this?
Analysts say China’s world-leading steel industry may be forced to cut output from electric arc furnaces (EAF), which account for roughly 15 per cent of China’s total steelmaking capacity.
Electric furnaces run on electricity and so emit fewer emissions than traditional blast furnaces, but have high power needs.
“The broad story is that there will be an increase in steelmaking costs, more so for EAF. This could amount to around 4.5 per cent of current rebar prices, which are currently at (5,860 yuan per tonne),” according to Li Wang, senior steel analyst at consulting firm CRU.
China is also restricting traditional steel output through mid-March next year to reduce smog, which may further underpin steel prices.
Chinese government has asked steel mills in some 28 cities in northern China to cut production in the winter heating season – from November 15 to March 15, 2022 in order to clear the smog-blanketed sky in the region and to ensure the achievement of the country’s steel output reduction target.
Steel mills will have to follow their 2021 output cut plans and maintain cuts of at least 30% in steel production from January 1 to March 15, 2022, from the level in the same period in 2021, according to a statement issued by China’s Ministry of Industry and Information on Wednesday.
The Malaysia government is considering to implement a temporary ban / increase tax on the export of steel to ensure the local steel industry has a sufficient supply of raw material to maintain its operations.
U think Malaysia is CCP ah? Ban export? U sort jor izzit? If this case happen, Malaysia should ban Petronas from exporting crude oil also, to ensure Malaysian have cheap oil to use.
Use your brain to think.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
nakata
307 posts
Posted by nakata > 2021-09-22 23:54 | Report Abuse
Thanks for your advice @calvintaneng