The Whole Production Capacity of Stainless Steel Industry Will Further Release

The whole production capacity of stainless steel industry will further release, downstream demand growth is slowing down, influenced by export policy, the international situation, European anti-dumping and the debt crisis, stainless steel and stainless steel tube exports slowed down significantly. Under the influence of the economic, the global commodity market is like riding on a "roller coaster", which make the mentality of investors constantly changing. Nickel and stainless steel market have significantly decline, both of which are double-digit decline. The stainless steel industry in 2011 showed a loss of status. In 2011, under the guidance of London nickl, the stainless steel market showing the trend of blew out after rapid expansion. The price of 304/2B cold roll up to 27, 000 yuan / ton this year, the lowest has dropped to 20, 000 yuan / ton, which decreased to 25.93%. Libya war, Japan's nuclear crisis, the European debt crisis is leading to price shocks constantly. There are three main reasons about stainless steel tube price decline in 2011. First, the tightening of macroeconomic policies, which inhibit the development of downstream users, esulting in the rapid decline of demand for downstream users. Second, raw materials prices dropping drive finished products prices decline. Third, the steel mills in order to stabilize their market share, production release resulting in supply and demand further. The situation of stainless steel price decline has reversed in November. Steel mills continuous losses, the price and cost have serious upside down, in order to ease the market pressure to reduce the risk of loss, since November, some steel mills made ​​the production cuts directly or indirectly, in a certain extent, price stabilization after November played a positive role in promoting. Domestic stainless steel total production in 2011 growth by 7% than 2010, the total production is expected to reach 12.5 million tons. Private steel mills this year growth slower, the monthly output of 10 major companies have reached 70 million tons level, while the 2010 average is not achieved, and varieties structure is also more abundant. Source: al-metal.org