Chen Qingke, director of Qingshan Holdings Group and President of Qingtuo Group introduced that since the beginning of this year, the operation of the stainless steel industry has mainly presented the following seven major characteristics.
First, the output of stainless steel crude steel, apparent consumption and import and export volumes all maintained year-on-year growth.
Secondly, the domestic market price of stainless steel has been relatively low, reaching a level not seen in recent years. Exports have shown a situation of increasing volume but decreasing price. In the first three quarters of this year, the spot price of stainless steel fluctuated around the cost line, remaining at a low level in recent years. A rebound occurred in late September. In terms of exports, in the first half of this year, China's total stainless steel exports were 33 billion yuan, a decrease of 10 billion yuan compared with the same period last year, a decline of 23.3%. The squeeze on export prices has further increased the impact on the operating profits of domestic stainless steel enterprises.
Thirdly, the overall industry benefits are generally low, and enterprises are under considerable operating pressure.
Fourth, the pace of scientific research and innovation has continued to accelerate, and the application fields of products have been further expanded.
Fifth, both domestic and international stainless steel production capacity is still increasing, and the cold-rolling capacity will reach a peak of commissioning.
Sixth, the prices of nickel and chromium raw materials have been fluctuating at high levels, and the competition for scrap steel resources has intensified, resulting in persistently high costs for stainless steel production.
Seventh, the international trade situation is not optimistic, and the competition in the global stainless steel market is becoming increasingly fierce. Since the beginning of this year, the number of anti-dumping/anti-subsidy taxes and tariff hikes imposed by foreign countries on China's stainless steel products has gradually increased, and the number of countries raising trade barriers has also increased, as has the variety of products covered.
