Analysis of the Characteristics of China Stainless Steel Market in the First Quarter--Affect the price and production of our stainless steel wire mesh, stainless steel welded wire mesh, stainless steel perforated metal mesh and expanded metal mesh, etc

At present, China's stainless steel market is in "three high symptoms." Which three are high? They are high output, high import volume and high inventory. In recent years, with the rapid growth of China's stainless steel production capacity, domestic production remained high in the first quarter of 2018, and cumulative crude steel production reached 6.61 million tons, an increase of 10.08%. The import volume of stainless steel hit a record high, with imports of stainless steel reaching 454,400 tons in January-February, an increase of 265.93%. Stainless steel stocks in major markets are also high. As of the end of March, stainless steel stocks in Wuxi and Foshan exceeded 400,000, and stainless steel electronic trading center stocks are not yet included. "Two low conditions" means low prices and low profits, respectively. At present, China's stainless steel market, whether it is a stainless steel manufacturer or a stainless steel distributor, is facing a severe test, which has forced the company to upgrade its technology and further enhance its market competitiveness.

How to deal with corporate follow-up? Based on the different backgrounds of companies, experts generally have the following three directions for development proposals.

First, reduce costs and control upstream raw materials to achieve integrated production. Upstream upstream raw material production market, integrated development, to seize the commanding heights of the industry, fundamentally reduce costs to open up the market; and adjust the existing product structure, adopt differentiated strategies, expand the stainless steel production capacity of different materials, improve product quality And grade, rapid response fills the market gap of high-margin stainless steel materials.

Second, positioning product features, establishing brand credibility, and doing the most appropriate product services. Stainless steel companies position their products accurately as the most valuable products. Outstanding quality, emphasis on product quality is the product's first core, firmly establish a sense of quality, strengthen quality management, rely on quality to brand the image of the brand; emphasize the reasonable price of the product, a reasonable price means that in the case of providing products to meet customer requirements The most economical price. Economic prices come from economies of scale and good management. It is market-based and profitable to increase sales, and it is natural for customers to purchase the most suitable quality at the most reasonable price. And to avoid the market's lowest-priced image, so as not to affect the brand image; extend the brand of the product, the brand will be differentiated and featured management.

Third, increase the joint services of processing, technology, and distribution with downstream companies. It is in close cooperation with stainless steel cold-rolled production companies, and closely connected with downstream processing and distribution companies and key downstream steel customers. Products, technologies, and talents are all in close cooperation to create integrated production and sales services.

In summary, the characteristics of the entire domestic stainless steel market in the first quarter were three [high" and two [low" situations, and companies faced severe sales pressures. The market transaction price has been in a weak adjustment operation in the past three months. However, raw and auxiliary materials The prices are relatively firm relative to steel prices, and most stainless steel companies are on the verge of losses. After entering the second quarter, on the one hand, if the current market terminal demand still does not increase significantly, overseas low-cost resources continue to be heavily imported, domestic stainless steel companies will have to continue to switch production and limit production; however, on the other hand, there are advantages Stainless steel companies will compete in the fierce competition, and the white-hot competition pattern will highlight their cost advantages. The advantages of talented people and technology or the advantages of integrating the industrial chain will also win more users and markets in the highly competitive market.

Based on the above text analysis, Xinzheng Company will continue to ensure product quality on the basis of guaranteed price concessions to ensure the smooth production of the entire production line to ensure the stainless steel mesh, welded wire mesh, expanded metal mesh, perforated metal mesh, filter disc and other stainless steel products can be supplied in enough quantity.

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