Commodity Super Bull Run: Part 2/2

Global commodity price has risen since the middle of 2020, and the rise is getting more pace in year 2021. Here in part 2, I'm making notes on recent commodity price surge on metals. You can refer to part 1 for commodity price on energy and agricultural products.

Steel

Reduction in supply and increase in demand especially from China have pushed steel and iron ore price to multiple year's high in 2021.

       Steel Rebar (CNY/T) 5-years chart

                     Iron ore (USD/T) 10-years chart

China's steel rebar price has reached CNY5500/T (~USD850/T) recently, up more than 60% in one year.

Listed upstream steel companies such as Ann Joo, Lion Ind, Southern Steel & Masteel should benefit from higher selling price of their end products.

Midstream & downstream steel players have to endure higher cost due to high steel price. However, they can increase the price of their products since steel price has gone up. 

For a period of time, they can enjoy super profit margin by utilizing raw material bought earlier at low price and sell at current high market price.

There are a lot of midstream & downstream steel companies listed in Bursa Malaysia, the long list includes Astino, Atta, AYS, Chinwell, Choobee, Chuan, CSCSteel, Dynacia, Emetall, Engtex, Hiaptek, KSSC, LeonFB, LSteel, Lysaght, Melewar, Mycron, Pantech, Prestar, SKBShut, Tashin, Tongher, WZSatu, YKGI, YLI etc.