Minsheng Securities: the focus of steel price may gradually rise, and the profits of steel mills are expected to gradually recover

Minsheng Securities believes that under the background of steady growth of infrastructure construction, construction in relevant fields is expected to be faster than in previous years, steel consumption may be started in advance, the production restriction in the North continues during the “Winter Olympics” on the supply side, and the release of steel output is limited. The social inventory of steel before the Spring Festival and the inventory level of steel mills are far lower than that in the same period of the lunar calendar last year, and the marginal improvement probability of steel fundamentals after the festival is large, The center of gravity of steel price may gradually rise. On the whole, the marginal improvement of steel fundamentals after the festival is expected to be strong, the center of gravity of steel prices may gradually rise, and the profits of steel mills are expected to gradually recover. Suggestions: 1) ordinary steel sector: Baoshan Iron & Steel Co.Ltd(600019) , Inner Mongolia Baotou Steel Union Co.Ltd(600010) , Hunan Valin Steel Co.Ltd(000932) ; 2) Plate: {686038, {686038}; 3) Target of Superalloy: Fushun Special Steel Co.Ltd(600399) ; 4) Target of graphite electrode: Fangda Carbon New Material Co.Ltd(600516) .