Steel price increases seen offsetting cost escalation Asia Markets April 14, 2010,
HONG KONG (MarketWatch) -- As shares of major Asian steelmakers continue to under-perform on concerns that rising raw material prices will eat into their margins, some analysts remain positive on the industry, saying product prices will keep pace with surging costs.
Shares of major steel companies in Japan, China and South Korea have had a poor run compared to the respective benchmarks in their countries so far this year, as Australian and Brazilian miners steeply hiked prices of key raw materials such as coking coal and iron ore.
And Japanese steelmakers last month accepted the terms of a new pricing arrangement for coking coal with BHP Billiton Ltd. /quotes/comstock/13*!bhp/quotes/nls/bhp (BHP 82.75, +1.37, +1.68%) /quotes/comstock/22x!e:bhp (AU:BHP 43.99, +0.15, +0.34%) , under which contract prices are reset every quarter, more often than the earlier practice of resetting the prices every year.
This stock is selling at nearly 100 times earnings.......and not much news comming from the company. I have a few hundred shares, but they will be gone at the first bump up......this has been dud since first purchaced.