Analysis of Sales Trend of Steel Analysis Instruments in 2011

The sales volume of steel analysis instruments is closely related to the good and bad conditions of the steel market. It is reported that Rio Tinto and Vale have already issued iron ore agreement prices for domestic steel mills in the first quarter of next year, which is an increase of 7.6%. According to Platts, Brazil's 66% grade Carragas iron ore price will be around 172 US dollars/kton, while Rio Tinto's 62% grade PB fines will exceed US$136/tonne. By then, the cost of tons of iron will probably rise by around RMB 100/ton. With the pressure of cost, the domestic steel mills are constantly being squeezed into profit margins.

According to the statistics of the China Iron and Steel Association, 75 large and medium-sized iron and steel enterprises included in the statistics from January to October achieved a profit of 69.34 billion yuan and a profit rate of only 2.8%, which is lower than the average profitability of China's industrial sector. Xinhu Futures analyst Weng Mingxiao said that the energy-saving and emission-reduction measures in 2010 made the inventory effect of last year significant, laying a good foundation for steel prices next year. At the same time, under the environment of rising costs and gradual domestic demand, steel prices will stage a bull market in the first half of 2011. The rise in steel prices will increase the profits of steel mills, which will gradually increase the investment in technological transformation of enterprises and increase the purchase of equipment such as steel analysis instruments. As a result, the trend of steel analysis instruments naturally increases.

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