The capital shortage is the biggest problem in securing the housing, and the start-up is lower than expected. According to information from the Ministry of Housing and Urban-Rural Development, at least 1.3 trillion yuan was needed to complete the goal of building 10 million sets of affordable housing in 2011. At present, the actual start-up rate of 10 million sets of affordable housing construction tasks across the country is only 34%. Among them, more than 70% of the city's operating rate is less than 30%.
Broaden the channels for the protection of housing. The issuance of local bonds and corporate bonds is preferentially used for the protection of housing construction. The protection of housing trusts has exceeded 10 billion yuan. Later-stage issuance will be further expanded. Insurance and ** capital participation in the construction of affordable housing policies will be gradually introduced.
The demand is huge. According to the calculation of 60 kg of steel per square meter in the protection room, the demand for construction steel in 2011 will be around 30 million tons. From January to April, the national steel output was about 31 million tons. We see that since March, rebar sales have increased significantly, and the thread production and sales rate has dropped significantly. We believe that the construction of affordable housing has effectively complemented the deceleration in the growth rate of commercial housing investment. If the demand for affordable housing is accelerated under various influences, it will be positive for long steel companies in the short term.
With increasing product specifications, construction steel supply is limited. The issuance of new production licenses for construction steel products led by the national construction steel quality supervision and inspection has begun. Under the guidance of the new rules, the number of issuance certificates will be significantly reduced. According to the Guidance Catalogue for Industrial Structure Adjustment just released this year, HRB335 and HPB235 are listed as phase-out products. At present, the steel bars produced by Chinese companies are basically HRB335 and HRB400. The use of high-grade steel bars promotes the implementation of new standards for construction steel and the implementation of national industrial policies, and will play an active role in the supply and demand situation and prices of construction steel.
Maintain the industry's "recommended" investment rating. In the event that the supply of long products is limited, the arrival of incremental demand increases, and the product specifications improve, we strongly recommend that Bayi Iron & Steel (600581), Sansteel Dawning (002110), and wines with a large proportion of long products be highly sensitive. Steel Hongxing (600307), Liugang Steel (601003), Hebei Iron and Steel (000709), Songshan Iron and Steel (000717).
Risk factors: Production released too quickly to suppress steel prices, and backward production capacity was not implemented.
Broaden the channels for the protection of housing. The issuance of local bonds and corporate bonds is preferentially used for the protection of housing construction. The protection of housing trusts has exceeded 10 billion yuan. Later-stage issuance will be further expanded. Insurance and ** capital participation in the construction of affordable housing policies will be gradually introduced.
The demand is huge. According to the calculation of 60 kg of steel per square meter in the protection room, the demand for construction steel in 2011 will be around 30 million tons. From January to April, the national steel output was about 31 million tons. We see that since March, rebar sales have increased significantly, and the thread production and sales rate has dropped significantly. We believe that the construction of affordable housing has effectively complemented the deceleration in the growth rate of commercial housing investment. If the demand for affordable housing is accelerated under various influences, it will be positive for long steel companies in the short term.
With increasing product specifications, construction steel supply is limited. The issuance of new production licenses for construction steel products led by the national construction steel quality supervision and inspection has begun. Under the guidance of the new rules, the number of issuance certificates will be significantly reduced. According to the Guidance Catalogue for Industrial Structure Adjustment just released this year, HRB335 and HPB235 are listed as phase-out products. At present, the steel bars produced by Chinese companies are basically HRB335 and HRB400. The use of high-grade steel bars promotes the implementation of new standards for construction steel and the implementation of national industrial policies, and will play an active role in the supply and demand situation and prices of construction steel.
Maintain the industry's "recommended" investment rating. In the event that the supply of long products is limited, the arrival of incremental demand increases, and the product specifications improve, we strongly recommend that Bayi Iron & Steel (600581), Sansteel Dawning (002110), and wines with a large proportion of long products be highly sensitive. Steel Hongxing (600307), Liugang Steel (601003), Hebei Iron and Steel (000709), Songshan Iron and Steel (000717).
Risk factors: Production released too quickly to suppress steel prices, and backward production capacity was not implemented.
Compression Spring Co., Ltd. , http://www.nsspring.com