德意志银行-欧洲钢材行业-steel price tracker global hrc prices rebound,iron ore prices remain strong-20170726-deutschebank.pdfVIP

Steel Price Tracker Deutsche Bank Markets Research Europe Industry Date France Steel Price Tracker 26 July 201 Germany Steel Periodical Steel Global HRC prices rebound, iron ore prices remain strong Bastian Synagowitz Entering the seasonally weak Q3; will steel prices fall? Volatility in steel equities remains driven by macro woes/commodity price Research Analyst movements. As cost support is fading, we expect European prices to fall (current +41-44-227-33 spot conditions would imply significant further earnings upgrades across the space). Thus, progress on anti-dumping policy and overcapacity removal remains Top picks crucial in the long term. Our top picks: 1) ArcelorMittal, which looks attractive ThyssenKrupp (TKAG.DE),EUR25.62 Buy to us based on strong cash flow (7-12% FCF yield), valuation and additional ArcelorMittal (MT.AS),EUR21. Buy upside optionality; and 2) ThyssenKrupp, on a possibly nearing event catalyst (Tata Source: Deutsche Bank merger), recovering earnings, and improving CF and sentiment. HRC: Southern European prices up E9 Last week, Southern European prices were up E