Steel price vroom vroom ~~ Are you ready ?

BHP jacks up coking coal prices 55%

Mumbai: BHP Billiton, the world’s top coking coal producer, has signed a coking coal deal with Indian steelmakers at $200 per tonne, up 55% from last year’s prices.

Pawan Burde, vice president (research), PINC Research said the industry was expecting a price rise of around $180 per tonne. “Steelmakers will have to increases prices by $60-70 per tonne.” Burde believes due to the strong steel demand in the country and robust auto and infrastructure spending, passing on this cost to the consumers won’t be a problem.

So Steel kaki, are you ready for roller coaster ??

Steel Sector Comparison

The steel industry in Malaysia can be categorically subdivided into two main segments, namely the long products and the flat products --
Steel consumption is projected to grow at an annual rate of 5%, with the ratio of longs to flats falling to about 40:60 by 2007. As Malaysia continues to industrialise, the consumption pattern will progressively favour flats as is
evidently seen in other newly industrialised countries. The anticipated increase in flats consumption is also due to the expanding manufacturing sector, being the main driver of industrial development in the coming years.
On the other hand, the longs segment will continue to depend on the construction sector, primarily the residential sub-sector as large infrastructure projects will be progressively scaled down under the new administration.

I've swap my lionind fund into cscsteel, the reason:



CSCsteel cash balance after deduct all the debt still left RM0.82 per share as market price 1.75 - 0.82 = RM0.93
You're actually paying 1.04 Per share for Cscteel which give you PE 2.63
Cscsteel is the highest Margin compare to others
The only debt free company CSCsteel

Morning KL

I just dispose 10,000 unit of lionind this early morning @ 1.81. 15% gain & 2.4k pocket, lionind is recovery from deep which you can hold for another 3~5 month time but I spot another good counter going to swap later if the price come to my target range. Stay in tune....

Lionind Roar ~~~

Latest update:

I bought lionind at 1.56 10,000 unit

Reason:

I foresee demand increase in steel sector, fundamental strong rebound for lionind.