The development of the global stainless steel industry has experienced hundreds of years and has roughly gone through three stages:
1990-2000 market expansion period; 2000-2016 accelerated development phase; 2016 to present, the growth slowdown phase
Since the 1990s, the development of the stainless steel industry has broken through traditional markets such as Europe, the United States and Japan, and has begun to develop into broader emerging markets. The first large-scale main production area in the history of the global stainless steel industry was born in the 1990s, namely the European stainless steel market. After more than a decade of development, by 2002, the global stainless steel production exceeded 20 million tons.
the United States and Japan, and has begun to develop into broader emerging markets. The first large-scale main production area in the history of the global stainless steel industry was born in the 1990s, namely the European stainless steel market. After more than a decade of development, by 2002, the global stainless steel production exceeded 20 million tons.
Developing countries continue to grow in stainless steel production and consumption, especially in China and other countries in the Asia-Pacific region, rapid economic development, as well as increased consumption in the civilian sector, driven by the rapid growth of stainless steel. Global stainless steel production. However, during the global financial crisis in 2008, stainless steel production grew negatively for two consecutive years. From 2010 to 2016, the growth rate of global crude steel production maintained double-digit growth, with China playing a leading role.
China is mainly borrowed from the Soviet Union to establish a number of special steel enterprises. At this stage, the demand for stainless steel is mainly for cutting-edge industrial and defense purposes, and the annual output of stainless steel is very small.
The country’s focus shifted to modernization. By 1999, apparent consumption increased significantly to 1.53 million tons, and production was only 300,000 tons.
With the rapid development of the national economy and the continuous improvement of people’s living standards, the rapid growth in demand for stainless steel, the massive use of domestic nickel pig iron has greatly reduced the cost of stainless steel in China. Apparent consumption of stainless steel at this stage exceeded 5 million tons, reaching more than 6.5 million tons in 2007
In 2008, affected by the spread of the financial crisis, domestic and foreign demand for stainless steel weakened, China’s apparent consumption of stainless steel was negative year-on-year growth. By 2010, stainless steel exports exceeded imports for the first time, net exports of 470,000 tons, achieving a change in the role of stainless steel net importers to net exporters.
Since April, stainless steel fee prices have fallen sharply and the cost of stainless steel has fallen faster. In March, although the average domestic stainless steel profits, but the steel mill production enthusiasm remains. Stainless steel crude steel production reached 3.03 million tons, of which 300 series production reached 1.38 million tons. Entering April, stainless steel profits recovered significantly due to the rapid decline in furnace prices at the raw material end. From the production scheduling, stainless steel starts are still at a high level, with fewer overhauls, production levels are the same as last month, and supply is adequate. The agency predicts that with the future rebound in stainless steel market demand, stainless steel prices are inevitably rising.
Back in 2017, the Ministry of Housing and Urban-Rural Development specifically approved the Technical Regulations for Direct Drinking Water Systems in Buildings and Residential Areas as an industry standard, stipulating that pipes should be stainless steel, copper, and other high-quality pipes that meet food-grade requirements. Shenzhen, Foshan, Changsha and other large and medium-sized city governments have begun to require the use of stainless steel pipes in household water supply systems. The national civilized cities of Shenzhen and Changsha are the first two major cities to introduce policies related to stainless steel drinking water pipes.
It is expected that within the next ten years, 70% of the drinking water pipes will become stainless steel water pipes. Stainless steel water pipes as a high-quality water supply material, has long been recognized by many health agencies around the world, stainless steel water pipes have been used for many years in the United States and other countries with strict requirements for water quality, Japan, Germany. With the popularity of stainless steel in residential plumbing, the future demand for stainless steel water pipes will show explosive growth.
the industry is highly concentrated. By the end of 2019, China’s stainless steel industry accounted for 81.08%. The overall competition is very fierce. And with the concentrated release of new steelmaking capacity in the future, the concentration of China’s stainless steel industry will further increase.
The leading enterprises are Qingshan Group and TISCO Stainless Steel. Qingshan Holding Group is now the world’s leading stainless steel company, with production accounting for more than 30% of China’s total output. TISCO Stainless Steel is a long-established domestic stainless steel enterprise, the industry leader. Its products are mostly high-end stainless steel products. However, with its own resource advantages and integrated low-cost smelting method, Qingshan Holdings is expanding and has the trend of catching up. . In the future, the battle for the stainless steel industry leader will most likely be fought between these two companies.
The two places account for more than 80% of the total circulation in the country, gathering a large number of traders and processing enterprises. Cold-rolled stainless steel coils are generally processed into semi-finished products in Wuxi and Foshan, and then shipped to all parts of the country.
The Department of Climate Change of the Ministry of Ecology and Environment issued a letter to the Chinese steel industry “on the commissioning of the China Iron and Steel Industry Association to carry out work related to carbon emissions trading in the steel industry” Association. After the power industry and the building materials industry, the steel industry became the third key industry to be included in the national carbon market. The steel industry, which consumes a lot of energy and involves a number of key back-end areas, was included in the national carbon market to participate in carbon emissions trading. This is an important step for building the carbon market and clarifying the emission reduction path for the industrial sector.
Currently, China’s steel industry is dominated by long processes, with many processes and high energy-consuming links, and large carbon emissions. Short process steelmaking, i.e. electric arc furnace, can significantly reduce energy consumption, and if more new energy sources are used, carbon emissions can be further reduced. As China’s scrap steel production increases, short process steelmaking will naturally increase.
