The rise of iron ore price is mainly affected by supply and demand. On the demand side, infrastructure construction in the second quarter of China was in a hurry, stimulating a substantial increase in demand for iron ore. According to the National Bureau of statistics, the average daily output of crude steel in May this year reached a record high of 2.976 million tons. At the same time, iron ore stocks are running low. As of June 19, the total iron ore inventory of 45 ports in China was 106.17 million tons, a new low since October 2016.
At present, more than 20 A-share listed companies have disclosed iron ore related businesses. Among them, Xingye mining, Nangang and Jinling mining all increased by more than 20% since the second quarter.
BDI soared, directly benefited from shipping stocks, at present, a shares involved in shipping seven stocks. The biggest rebound this month was COSCO offshore holdings, up more than 10%. The trend of other stocks is relatively moderate, and the stock price is relatively low.
Steel stocks old trees bloom, leading the rise strongly
Huatai Securities expects steel prices to fluctuate and coal boom or rebound in the second half of this year: 1) steel supply and demand are booming, actual production capacity or expansion at the supply end, infrastructure investment at the demand end is strengthening, automobile production and sales are recovering or driving demand for steel and special steel, so steel prices may fluctuate and maintain the rating of increasing Holdings; 2) electricity demand continues to recover, while water and electricity demand may decline and import year on year The coal policy is stricter, the supply and demand of power coal is improved, and the inventory of ports and power plants is lower than that of last year. We are not pessimistic about the price of power coal; the main coke production areas are subject to frequent capacity reduction and production restriction, and the price of coke is rising, maintaining a neutral rating. At the individual level, it is suggested to choose to benefit from the industry boom recovery leader, Baosteel, Shaanxi coal industry, China Shenhua, etc.