How can steel accelerate?

How can steel accelerate?

 

Wall Partition Material Metal Building U Steel Channel.jpgThe obvious acceleration of industrial production is the driving force for steel's recent lead. Historically, due to overcapacity in steel, even if the demand for terminals is improved, its profitability is not flexible. In recent years, driven by supply-side reforms, steel overcapacity has been effectively resolved, and its profit has become more sensitive to demand. The recent acceleration of industrial production recovery is the driving force behind the recent rise of steel.


The valuation level is at a low level, which is the bottom line for steel's recent rise. The valuation of the steel sector is also at the lowest level in history, with a high margin of safety. In an environment where market volatility is significantly increased, steel with a low valuation level has the leading edge.


At present, the M&A funds in the steel industry have gradually become the mainstay of the marketization and capitalization of the integration of the steel industry. The iron and steel fund relies on steel and the integration of upstream and downstream industrial chains, and its role in the merger and reorganization of the steel industry has gradually emerged, which will accelerate the consolidation of the national steel industry and the overall industrial optimization and upgrading.