We can see the rotation play in the market,
The Steel Counter has started to move up after Property, Plantation & Contruction Counter has risen.
The reason or excuse for the Steel Counter to move is simple, i.e Steel counter will benefit from all the implementation of the Mega Projects under the 2011 budget.
BUT, JUST BE REALISTIC, NEVER HOPE FOR THE SURGE LIKE YEAR 2008 WHERE THE STEEL PRICE HAS RISEN LIKE ROCKET. THE STEEL PRICE GO UP ALMOST 100% WITHIN 1 YEAR PERIOD.
No more ! The year 2008 event is historic & it happen once in a century, the price surge in 2008 is mainly due to structural problem in supply & demand.
And now the situation is totally different:- 1)the China effects has reduce due to policy shift from export to local consumption and no longer focus on low cost production, 2) The world is over supply in Steel.
I do not see there are big increase in Steel Price, most likely it will be go up or down within a tight range.
No comments:
Post a Comment