The rising cost of stainless steel prices will shock upstream



The rising cost of stainless steel prices will shock upstream

recently issued by the Ministry of Industry and Information Technology “high-end equipment manufacturing industry” 12th Five-Year “development plan” nowadays and sluggish stainless steel market to bring good 300 series stainless steel prices are expected to shock upstream, power, operating on the latter part of the stainless steel market cautiously optimistic outlook, the forecast of the domestic market of the mid-May to late 200 series and 400 series stainless steel prices stabilized.

operators and the industrys market research shows that, more recently, the domestic stainless steel market does not seem any improvement in trading is relatively commonplace, manufacturers sales is not smooth, the price stable and slightly volatile. May due to selling pressure in parts of 400 series stainless steel market prices fell slightly on the 430 series stainless steel prices in Foshan, Wuxi Stainless Steel Market 10300-10400 yuan / ton.

Similarly, the 304 series stainless steel market prices also fell slightly. Some of the stainless steel market 304 1.0mm stainless steel cold rolling average price of 19,140 yuan / ton, down 100 yuan / ton. 300 Series in Wuxi 2.0mm-3.0mm stainless steel cold rolled price 18600-18800 yuan / ton; 4.0mm, 8.0mm, 12.0mm stainless steel hot rolled plate market price were of 17900,18000,18300 $ / t.

In contrast, the 200 series stainless steel market prices stable, while others are a steady rise. The end of April early May, such as the 201 series cold-rolled stainless steel price in Wuxi, Foshan market rose 200 yuan, the price of 12,000 yuan / ton; other cities in the 201 cold rolled stainless steel prices rose 300 yuan, offer 12100-12400 yuan / ton.

Overall, this time the stainless steel market showing a weak trend of the main reasons: First, the downstream terminal demand no significant release of thinly traded market turnover small; the market price of raw materials loose, such as smelting stainless steel, the main raw material nickel market shock, LME nickel vulnerable consolidation, the domestic electrolytic nickel spot market is deserted, poor trading, the price correction run. Downstream end-users this week north down a steel high-nickel-iron in May Inquiry price, some users temporarily signed the orders in May, the market waiting to see a strong atmosphere.http://www.china-steel-parts.com. Domestic scrap stainless steel market vulnerable to run transactions in general. Chromium alloy market, there is no improvement, pre ferrochrome price shocks decline nowadays stabilized after dropping, high-chromium were sold in 7650-7800 yuan / base t, imports of ferrochrome quote 7950-8450 yuan / base t. Steel prices down. Stainless steel raw material prices fell, the cost of manufacturing enterprises decreased, coupled with substantial upside down between the market price of the leading steel prices, some of the major steel mills are made of stainless steel products in May futures prices adjusted downward accordingly, some steel Factory 304 cold rolled stainless steel prices cut by 300 yuan / ton, 304 hot-rolled stainless steel prices cut by 200 yuan / ton, 430 cold rolled stainless steel prices cut by 600 yuan / ton, which promote the spot market to a certain extent part of the stainless steel price shocks the downside.

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In addition, the stainless steel production growth, exceeding the growth of market demand, supply and demand highlights. According to the statistics show that of the crude steel production in January to March 32 Special Steel Enterprises, stainless steel crude steel production of 1,264,776 tons, an increase of 14.12%; part of the stainless steel crude steel and stainless steel production increased significantly. Such as chromium stainless steel production in January-March year-on-year increase of 21.05%. Cr-Mn steel (200 series) stainless steel crude steel production was 808,000 tons, compared with the first quarter of 2011, an increase of 279,000 tons, an increase of 52.86%, we can see the steel production is still sharp rebound, but the downstream digestion and limited capacity the market supply and demand will become more pronounced.

However, for the latter part of the stainless steel market, some operators believe that domestic stainless steel market can still look forward to the future, the downstream terminal demand will gradually release to support the stainless steel market to stabilize from the just-released high-end equipment manufacturing industry “12th Five-Year” development planning “point of view, the high-end equipment manufacturing industry will be rapid development of very strong demand for stainless steel and other gifted Steel.

in the “12th Five-Year” period, high-end equipment manufacturing sales revenue of more than 6 trillion yuan, accounting for in the equipment manufacturing industry to 15% of industrial value added rate of 28%. Clear and aviation equipment, satellites and applications, rail transportation equipment, marine engineering equipment and intelligent manufacturing equipment, the key tasks, in which the child planning to rail transportation equipment industry “12th Five-Year” development plan “clear grasp of our rail transportation development opportunities, accelerate the transformation of industrial structure adjustment and industrial development mode, the combination of technological innovation and international cooperation, to strengthen the technical innovation system, and promote the collaborative development of host and key systems, make breakthroughs in the development of rail transport equipment industry train operation control system the core technology and key components of the security monitoring, improve the public service platform for experimental validation, and certification testing, to enhance the core competitiveness of rail transport equipment industry playing the leading international high-end industrial.

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rail transportation equipment industry “12th Five-Year” development plan “to point out that the state has approved the urban rail transit construction program, to 2015, will more than 30 cities in the construction of 85 rail transit lines, the total length of more than 2700 km. Expected the “12th Five-Year” period, the demand for EMU is about more than 1000, about 5,000 more than the power AC drive electric freight locomotives and diesel locomotives demand for passenger and freight vehicles, communication signal, large-scale road maintenance machinery and other equipment greater market demand.

rail transportation equipment industry, demand for stainless steel, such as rail transit vehicles are generally stainless steel and aluminum cars. Stainless steel car in addition to the traction beam, corbel, in the beam by the force components are still low-alloy steel, and the rest of stainless steel; traffic by mid-sized car B (19 m long, 2.8 meters wide and 3.8 meters high). basis on the steel the characteristics of various types of vehicles, all-steel car steel capacity of 25 tons; stainless steel, 23 tons of steel, stainless steel as 7 tons. Thus, with the rapid development of rail transportation equipment industry, will stimulate demand for stainless steel, to support the smooth operation of the stainless steel market.

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In addition, steel mills to increase the adjustment of industrial structure, control of capacity release, insured stability city, to promote smooth running of the stainless steel market. It is reported that in May of some steel mills cut production 30%, and market resources, limited investment and would like to take this to pull up the market spot price. In fact, the domestic stainless steel production capacity and no release of all of the data released by the China Special Steel Enterprises Association Stainless Steel Branch, 2011 stainless steel crude steel production in China was 12.591 million tons, an increase of 1.335 million tons, an increase of 11.86. The analysts believe that in 2011 Chinas stainless steel production increased from the rapid growth in 2010 turned to fall sharply, and 2012 stainless steel enterprises are facing the situation is still difficult. Point of view, from the total production capacity of 2011 stainless steel total production capacity in China has reached 20.4 million tons, while actual production was 12.5 million tons, capacity utilization is only about 61.3 percent, far below the 84% level of the steel industry.

Also, the recent market price of nickel, chromium and stainless steel raw materials such as showing signs of stabilization and higher. Due to rumors of Indonesian nickel ore export policy, the futures price of nickel ore firm, in order to slow domestic ports spot ore prices, supported to some extent, the price of nickel-iron. Some domestic manufacturers recently raised ex-factory price to 13.30 yuan / t of electrolytic nickel (board), bottled small piece of raised 134,200 yuan / ton, the increase rate of 3000 yuan / ton. Shock upstream of the raw material prices, stainless steel production costs, will also support the latter part of the domestic stainless steel market stabilize.

the industry believe that the view of the above and many other factors, the post-stainless steel market is expected to stabilize prices of 300 series stainless steel shock is expected to rise, the 200 series and 400 series stainless steel prices or to the overall smooth.


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