Contents
Following the money 3
We expect the cycle of steel-price increases to persist until 4Q09 before taking a
breather. As we head into 4Q09, the market may start to focus on potential
tightening measures, and that could trigger a correction.
3
Steel price hikes to result in profit turnaround 3
Perceptions of tightening may be a risk in coming months 5
Price leverage vs relative value 7
Improving demand, but abundant supply 9
Demand for steel products has improved, helped by government stimulus measures
and restocking by end-users and traders. However, with abundant supply, price
progression may be choppy and margin recovery to average levels slow.
9
Price recovery should last until 4Q09 9
Some signs of cost-push 10
Excess capacity remains an issue 12
Growth opportunities – expansion and consolidation 13
Asian Metals and Mining monitor 16
Company profiles 20
POSCO 21
Dongkuk Steel Mill 31
China Steel Corp 40
Baoshan Iron & Steel 50
Angang Steel 59
Maanshan Iron & Steel 68
Shougang Concord Intl 76
Chongqing Iron & Steel 85
Steel Authority of India 94
Tata Steel 103
PE charts 113
PB charts 115
EV/EBITDA charts 117