Steel City Welcomes Shuanglee to Drive Stainless Steel Takeoff

Leading Word: With the release of the first quarter financial reports of major steel mills, the downturn in the steel market has been expected by industry players. Recently, with the upcoming second round of New Deal for home appliances, a series of actions such as the growth of investment in railway infrastructure, the steel market may see the dawn.

(1) The New Deal of Home Appliances

On the 17th, home appliance stocks became dark horses in the A-share market. Little Swan A limit, 200 million net funds into the TCL Group, plate rose nearly 3%. This is related to the market's expectation that a new round of home appliance industry stimulus policies will be introduced soon. People in the home appliance industry expect that energy-efficient energy-saving home appliances will be subsidized, which will become a new “engine” for the home appliance industry after the home appliances, old-fashioned trade-in incentives and other incentive policies. In recent years, the country has been very fond of the home appliance industry. Peng Ye, research director of Zhongkang, analyzed that the output value of the home appliance industry includes TV sets, refrigerators, air conditioners, washing machines, small household appliances, telecommunications, digital computers, etc. Sales of household appliances amounted to 1.2 trillion yuan, accounting for about 6% to 7% of the total retail sales of domestic consumer goods. “A bit of a hand can mobilize the overall economy.”

summary

It is expected that China's home appliance industry will experience a trend of "low before and after high" this year, which will also be a good stimulus for the release of the downstream demand of the steel market.

(II) Railway infrastructure investment will increase

On the 15th, the Ministry of Railways announced the completion of infrastructure investment in January-April, which only invested 71.7 billion yuan. The distance between the Minister of Railways Sheng Guangzu and the goal of arranging infrastructure investment of 400 billion yuan at the working conference last year was far from the goal. Some experts analyzed that in the subsequent infrastructure, investment will increase. Since the beginning of last year, the Ministry of Railways has been effectively resolving the problem of rumors, not only receiving 200 billion yuan in support of the project funds and key projects. It also issued the RMB 20 billion railway construction bonds for the first period of this year. It is reported that local governments also support the construction of railways and gradually increase their strength.

summary

The market is still in a period of confidence recovery for railway construction. The early period is relatively slow, but with the support of government departments and the quality supervision of railway construction itself, the market confidence in the latter period will continue to rise. The acceleration of investment in railway infrastructure will, in the long run, lead to the development of the steel market.

Your stencil viewpoint

The access threshold for home appliance energy-efficient product subsidy policy is not low, not for all household electrical appliances; railway infrastructure investment is in the period of market confidence recovery, but also needs a certain effective period; in the face of China's current low-profile steel market, we are still not in the short term The hope is pinned on this, but in the long run, this is a stimulus to the downstream consumption of the steel market and it also supports the steel market in the later period.

Given that household appliance consumption accounts for a large proportion of the stainless steel consumer market, it plays a supporting role for the latter price of stainless steel. The development of railway infrastructure will inevitably increase the stainless steel high-end consumer market of the MU. It is undoubtedly a hint of spring for the cold market of the stainless steel industry.