2022年1月17日

Casting raw material prices continue to rise a number of concept stocks strong performance

Imported iron ore prices have risen 60 per cent in December, driven by a combination of accelerating production by overseas steelmakers, tight supply and demand due to a slowdown in shipments from foreign ports, and expectations that the capital market will rise.

According to data from the China Nonferrous Metals Industry Association, the prices of copper, aluminum, lead and zinc base metals have remained high since July, exceeding pre-epidemic levels. Combined with Shanghai non-ferrous data, recent prices of a variety of non-ferrous metals have risen significantly.

Data show that the electrolytic copper on November 13 was 52,020 yuan/ton, up 15,380 yuan/ton compared with the lowest price of 36,640 yuan/ton this year. Electrolytic aluminum 15630 yuan/ton, up 4410 yuan/ton compared with the lowest price of 11220 yuan/ton; Lead ingot 14,675 yuan/ton, 1300 yuan/ton higher than the lowest price of 13,375 yuan/ton; Zinc ingot 20,070 yuan/ton, higher than the lowest price of 14,320 yuan/ton 5750 yuan/ton.

Casting raw material prices are rising

A large number of foundry enterprises stopped production

In addition, 2020 is the final year of the three-year action plan to win the battle against blue skies, and governments at all levels have launched governance actions. Since entering autumn and winter, environmental inspection around the more frequent and strict, casting and other key industries need to stop and limit production, a large number of casting enterprises into the semi-production or has stopped production, casting production significantly reduced and then pushed up casting prices.

In order to make the foundry enterprises survive and develop healthily, the foundry association has issued a notice of price adjustment.

According to vegetationdistribution casting industry association issued “notice about casting product pricing, because of the iron casting production enterprise raw materials mixed iron and bread and other major raw materials rose sharply, foundry auxiliary materials prices also have different degree increase, combined with environmental protection requirement is higher and higher, the artificial factors such as rising cost, politics and decided upon by the casting association since December 15, 2020, to make the following adjustment of the casting price.

First, the price of sand cast gray iron per ton is increased by 300 yuan on the original basis; Second, the price of carbon steel castings per ton is increased by 1000 yuan on the original basis; Third, the cast stainless steel product price on the original basis by 1500 yuan.

Casting bibcock rises to a new high

A which companies have casting business? Securities Times · Databao statistics show that there are 35 companies with casting business.

From the performance of the secondary market, some casting leading companies have taken the lead in rising. Statistics from Databao show that since December, there have been nine stocks, including Dongfeng Motor, New Qianglian, Riyue shares, Jinlei shares, etc., have gained more than 10%.

The New Strong Alliance has gained 42.45 per cent to hit a record high on December 23. The company made a profit of 259 million yuan in the first three quarters, up 359.35 percent year on year.

At present, Jinlei has two forging production lines of 4000 tons and 8000 tons press, which can meet the production requirements of all kinds of spindle forgings of 1.5MW and above.

Hengli hydraulic invested to build high pressure precision hydraulic casting production base, hydraulic valve, pump production base. In the first half of the year, the company sold 26,200 tons of castings out of warehouse, up 45% year on year.

From the valuation level, Yunhai metal, Jixin technology, combined technology, Jinlei shares, Guangzhou special material, Xiang oil pump 6 shares earnings ratio is less than 30 times, Yunhai metal earnings ratio is the lowest, only 14.35 times.

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