Since the Spring Festival, the steel plate has been the most outstanding blue-chip segment, and the overall trend has far outpaced the broader market.

In the near term, the market is in an adjustment, and the steel plate still shows a strong momentum. Many analysts are looking forward to the performance of the steel stocks. The basis is that in the first year of the 12th Five-Year Plan, the construction of affordable housing projects will continue throughout the country. The commencement of construction and the “electricity shortage” have intensified and power cuts have been ahead of schedule. The improvement in the relationship between supply and demand for steel brought about by limited production capacity and demand release has given the market a strong confidence.

The “Twelfth Five-Year Plan” clearly stated that China will build 36 million sets of affordable housing in the next five years. This year is the acceleration year for the construction of affordable housing, and the number of affordable housing construction in various places has increased substantially compared to last year. According to the plan, a total of 10 million sets of urban affordable housing will be built this year, an increase of more than 70% over last year. In addition, 1.5 million dilapidated houses in rural areas will also be transformed. According to statistics, the central government subsidy for affordable housing this year will exceed 100 billion yuan. Insiders estimate that the total investment in affordable housing this year may be as high as 5 trillion yuan. The comprehensive construction of social housing has undoubtedly promoted the development of the steel industry. According to industry data, the steel used for building is about 55 kilograms per square meter of housing. According to the per capita housing area of ​​30 square meters, the amount of 10 million sets of affordable housing is 49.5 million tons. Ton, the market size is about 250 billion yuan. This is equivalent to one-fifth of the annual sales of all steel listed companies in the A-share market in 2010, and the rapid decline of rebar stocks reflects the fact that this market has started.

Although it has not yet entered the peak season of summer electricity consumption, some provinces have recently reported electricity shortages and deployed power cuts. With the continuous rise in coal prices and unregulated electricity prices, the contradiction between coal and electricity may come to an end this summer. The form of concentration broke out. According to statistics, the electricity consumption of iron and steel enterprises accounts for about 14% of all industrial electricity consumption, which is the key target of the government's energy-saving emission reduction. Affected by this, the country will again limit the electricity demand of high-energy-consuming enterprises. Small and medium-sized steel enterprises will face passive production cuts. The reduction in supply will cause the steel prices to continue to rise. Large and medium-sized steel companies with relatively high power plants will instead Indirectly benefit.

The full-scale construction of affordable housing and power cuts will affect the steel market from both demand and supply. The ultimate result is to improve the supply and demand relationship of steel products, which will provide further support for steel prices.

From the secondary market perspective, the steel sector has also been affected in the recent weakening of the broader market, but there is no shortage of outstanding stocks in Jinan Iron and Steel and Laiwu Steel. The two companies rely not only on the good expectations of the steel market in the future, but also rely on the two companies. The adjustment and improvement of the industrial structure achieved by the company's restructuring, combined with the two swords, has enabled the two companies to become bright spots in the near-term and continue to be favored by investors.