Stainless Steel Prospects Analysis Indicates Stainless Steel Demand is Stable
First, the domestic demand continues to grow. Investment in fixed assets, especially the infrastructure investment, private investment and real estate investment will maintain a high level or show a rebound. Increased orders for investment goods contributed to the steady growth of manufacturing industry. According to the latest data, the fixed assets investment has kept rising for the last two consecutive months and has been in more than 51% interval expansion in the past 6 consecutive months, showing a steady and positive trend. At the same time, volume of generated energy and railway freight rebounded; the sales of heavy trucks and excavators grew rapidly; BDI sharply rose. Almost all macro and leading indicators have shown that the economic trajectory has shifted from the falling trend to the stable trend, indicating that the prospect of stainless steel demand is stable.
Second, the global economic recovery situation does not change. In the first quarter of this year, the situation of 62 economies in the world improved, while the situation of 33 economies deteriorated compared with the previous year. Anyway, the overall situation still improved. Among the most important economies, China's economic growth is better than expected; the US economic growth accelerated; India's economy maintained strong growth; the Latin American economy is expected to recover; the economy of Euro Zone has gained the fastest growth in the past six years under the leadership of France and Germany and the economic growth rate may reach 0.6% in the first quarter of this year. Based on this point, the Federal Reserve announced to rise the interest rate again and that the interest rate rising process may be accelerated in the near future. Affected by this, both the global demand for stainless steel and the world's stainless steel production have increased. According to the relevant statistics, the crude steel output is expected to rise more than 5% in 2017 compared with last year. The US has delivered a speech on the double negative (anti-dumping and anti-subsidies investigation ) case that China's stainless steel plate, stripes and carbon steel alloy plate has caused substantial damage to the American industries. Thus, US customs will levy anti-dumping and anti-subsidies taxes on the above products imported from China. Wang Hejun, the Secretary of Ministry of Commerce Trade Remedy and Investigation Bureau also made a statement on this issue. The operating difficulties of US steel companies mainly lie in their low yield and profits caused by obsolete facilities and no connection with the stainless steel plate, stripes, and carbon steel plate exported from China. In fact, during the survey period, the demand for above products in the US domestic market increased and the products exported from China to the US met the great demands in the US market. The stainless steel trade between China and the US is complementary. China not only exports stainless steel pipe products to the US, but also imports them from the US. The products manufactured in China and the US are very different in function.
Second, the global economic recovery situation does not change. In the first quarter of this year, the situation of 62 economies in the world improved, while the situation of 33 economies deteriorated compared with the previous year. Anyway, the overall situation still improved. Among the most important economies, China's economic growth is better than expected; the US economic growth accelerated; India's economy maintained strong growth; the Latin American economy is expected to recover; the economy of Euro Zone has gained the fastest growth in the past six years under the leadership of France and Germany and the economic growth rate may reach 0.6% in the first quarter of this year. Based on this point, the Federal Reserve announced to rise the interest rate again and that the interest rate rising process may be accelerated in the near future. Affected by this, both the global demand for stainless steel and the world's stainless steel production have increased. According to the relevant statistics, the crude steel output is expected to rise more than 5% in 2017 compared with last year. The US has delivered a speech on the double negative (anti-dumping and anti-subsidies investigation ) case that China's stainless steel plate, stripes and carbon steel alloy plate has caused substantial damage to the American industries. Thus, US customs will levy anti-dumping and anti-subsidies taxes on the above products imported from China. Wang Hejun, the Secretary of Ministry of Commerce Trade Remedy and Investigation Bureau also made a statement on this issue. The operating difficulties of US steel companies mainly lie in their low yield and profits caused by obsolete facilities and no connection with the stainless steel plate, stripes, and carbon steel plate exported from China. In fact, during the survey period, the demand for above products in the US domestic market increased and the products exported from China to the US met the great demands in the US market. The stainless steel trade between China and the US is complementary. China not only exports stainless steel pipe products to the US, but also imports them from the US. The products manufactured in China and the US are very different in function.
