China Stainless Steel Industry Status

Overcapacity of Low-end Stainless Steel Sheet

The current status of stainless steel industry is, on the whole, small capacity of high-end production, excess capacity of low-end on demand with the international and domestic economic situation to weaken persistent lower funding liquidity problems, and a variety of efforts to limit capacity release factors increase. The first is the high-end capacity is small and low excess capacity problem, the low-end demand is highly elastic demand volatility with the economy and some of the factors, once the economic situation go bad, then its impact is also very impressive. But the status of stainless steel coil industry, in fact, is the basis of the industry as a whole must be SMEs account for the majority of the early stages of development, low level of integration, state-owned funds crowding out of private funds obviously causes congenital factors, so this can only be eliminated in the throes of constant development, transformation and upgrading in order to gradually solved, so the whole industry is affected by economic cycles is inevitable.

Decline Demand of Stainless Steel Sheet Export

The overall export demand with the decline in the domestic economic situation, the international demand is not optimistic with the situation of the debt crisis in Europe and the United States and other countries, coupled with emerging economies, the national economy is also not very optimistic about a variety of anti-dumping measures, the current demand, trade barriers and other international orders due to reduced demand, it can be expected that this situation will continue for some time. And, with the slowdown of economic growth and the continuing decline of the CPI data for the fine-tuning of fiscal policy have been signs of a great, but its stable currency policy tone also shows its think tank for the coming year, inflation repeated a possibility to predict. So in the short term, large-scale release of the possibility of liquidity is not large liquidity released at the latest it comes to small and medium-sized and small stainless steel sheets enterprises must still be faced with a relatively rigid day.

Economic Crisis Limits Stainless Steel Development

Because of the importance of environmental protection, and the continuing impact of the problem of domestic coal price mechanism, or even because of the continued deterioration of the current situation in Iran and the Middle East, so the rise in oil prices next year may appear more urgent, so the next year on the one hand is to limit The high-energy-consuming measures, on the one hand, the rise in oil prices, the last is the shortage of electricity supply may still be greatly troubled stainless steel ring industry, causing considerable influence on its capacity release. Course is worth mentioning that, because of the attention for the environmental protection industry, the demand for sanitary stainless steel pipe in the future economic development will inevitably have considerable growth, the addition of nuclear power to increase investment in water conservancy investment and desalination industry progress, it is bound to bring about some structural opportunities for the stainless steel ring industry.

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Overall Development Status of China's Stainless Steel Industry

Large Stainless Steel Enterprises Pattern

After several years of construction, the large backbone stainless steel enterprises in China have put into operation, the complete process equipment supporting these enterprises, a high level of technical management, China's stainless steel production reached a certain scale. By the stimulation of market demand, the development of the private stainless steel factories quickly has emerged. A group of a certain size and compare state-of-the-art technology and equipment companies come into being. Due to the flexibility of private mechanisms, and better able to meet the market demand, it has become China's stainless steel market strength. Market demand in the event of a change, species also changes. The current situation is that manufacturers occupy the hot-rolled, cold rolled stainless steel sheets (volume) of the market, to support the country's key industries, key projects; private enterprises accounted for the majority of bar, wire, seamless steel pipe, narrow steel, as well as part of the profile and steel wire market.

Stainless Steel Exports Increase

A few years ago, domestic demand for stainless steel depended on a large number of imports, but with the development of the domestic stainless steel industry, China's stainless steel gradually increases the self-sufficiency rate, exports also gradually increase. The self-sufficiency rate of stainless steel coil and steel plates is 89% in 2010, the first time in May 2010, the stainless steel exports is more than imports, net exports is 470,400 tons as of the end of 2010, we have achieved the role transformation of a stainless steel net importer to a net exporter.

Ferritic Stainless Steel Technology Improves

The time of heavy use and large-scale production of stainless steel in China is not long, businesses and consumer lack of understanding of the stainless steel, there is a gap of the rational use of stainless steel products in China and abroad. Of ferrite production and use of a small amount of one of the main reasons is the smelting backward production technology, production of 400 series stainless steel deep drawing properties, corrosion resistance and welding performance is below standard. If enterprises want to improve in production technology, strengthen propaganda and guidance at the same time, they should let the majority of consumers enhance the understanding of the 400 series. The proportion of the use of 400 series ferritic stainless steel in China in 2010 reached 27.77%, which is close to the level of developed countries. Many stainless steel companies develop a series of super-ferritic stainless steel, duplex stainless steel, super duplex stainless steel, super austenitic stainless steel and corrosion resistant alloy products, and they have been widely used in various fields of the national economy. The ferritic stainless steel is one of the key development directions of China stainless steel.

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