Strongly recommend to buy China Precision Steel, Inc. (CPSL)
By Daniel at 9 June, 2009, 11:27 am
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China steel industry is “Right product, Right place, Right time” for you to consider your investment. There are a lot of china steel stocks but today I would recommend China Precision Steel, Inc. (CPSL). Right to stay long and right to be rewarded for doing so. This company has been putting down roots long enough to find the successes. I have compare CPSL to a lot of others, I found this one is most potential and best future growth prospect. There are several reasons you should invest heavily in CPSL:
China steel industry is about to re-enter the boom
China steel industry is experiencing a very difficult time in the history after the bubble is bust in 2008. Producers are hurry to cut the production down and slash price over 60% as this crisis began. Steel industry outlook being revised down several times as crisis deepens. As many countries as U.S and China launched huge stimulus package(s) to stimulate the economy, most of the countries are putting most of stimulus funds into the infrastructure projects, the steel demand is going to boost, especially in China. As signs of recovery of world economy become more clear, the investors’ confident returns, the China steel industry is about to recovery within six months and it may re-enter the boom in about 8-12 months afterward.
In longer term small Chinese steel stocks are golden
Falling inventories with traders pushing up steel prices in China
Saturday, 09 May 2009
Mysteel survey shows traders’ steel inventories in the country added up to 9.47 million tonnes last weekend including 4.4757 million tonnes of long steel and 4.9989 million tonnes of flat steel down 200,200 tonnes and 47,600 tonnes respectively from a week earlier.
Steel industry has eyed positive signals recently, with steel price shaking off ten-week-long downswings. Some steel mills have subsequently raised EXW prices for some products. Falling inventories can further buoy up the uptrend of steel price.
Many medium and small steel mills have resumed productions since this year beginning, to great extending offsetting the production cutbacks by big steelmakers. Many mills have to build up inventories after reductions in Q4 of 2008.
Statistics from Mysteel reveal 71.4% of the steel mills report normal inventories in May with 18.2% and 10.4% eye low and high inventories compared with 44%, 42% and 14% respectively in last month.
China Precision Steel business outlook
China Precision Steel is currently constructing its third cold rolling mill and expects to have completed the construction in the first quarter of fiscal 2010. The new mill is designed to process steel with a width up to 1,450 mm and will be a tandem mill with best-in-class gauge control and shape performance capable of producing high quality steel for exposed and unexposed products.
Dr Li said “While near-term visibility for the steel industry remains limited, we believe that the implementation of several economic and industry stimulus packages are helping to restore stability and reaccelerate global growth. Moreover, China is still in the middle of a grand scale modernization and industrialization which we believe supports long-term demand for precision steel products. Precision steel remains the material of choice in many important and exacting applications and we have the right people, facilities and technology to deliver the steel solutions our customers need. Therefore, we believe we are well positioned to participate in an economic recovery when it occurs as well as to resume our growth strategy to increase our market share.”
China’s auto sales may reach 11 million
CPSL’s precision products are primarily used in the manufacture of automobile parts and components, steel roofing, plane friction discs, appliances, food packaging materials, saw blades, textile needles, and microelectronics.
Well, the Chinese recovery may be debated by some, yet there is no denying the increased sales of automobiles in China should be a bright future for CPSL.
Singapore (Platts)–9Jun2009
China’s automobile sales will “definitely break the 10-million-units
barrier” in 2009, China Daily reported Tuesday, quoting the China Passenger
Car Association.
The association said “automobiles sales in China will touch 11 million
units this year, on the basis of the total number of vehicles sold across the
country in the first five months.”
Data released by the association showed that China sold 812,178 units of
passenger vehicles in May, the fifth consecutive month sales have climbed this
year. Sales in May jumped by a faster-than-expected 54.7% year on year, and up
a slight 1.2% from April.
Total passenger car sales in the first five months jumped 29.6% to 3.64
million units from the same period last year.
China also has, for the fifth consecutive month, beaten the US as the
world’s largest automobile market.
“The growth in the passenger car segment will probably continue in June
to hit a new monthly record, which will boost the whole-year sales to the
11-million-unit mark,” said Rao Da, secretary-general of the association.
Typically, around 8-10% of an automobile is made of plastics, such as
polypropylene and ABS. So higher automobile sales will means strong demand for
such plastics.
another link:China auto sales in May up 34% to 1.12M units
Always do you own homework before invest:
http://finance.yahoo.com/q?s=CPSL
http://www.google.com/finance?q=NASDAQ:CPSL
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