Excess Production Capacity Undermines Stainless Steel Prices

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Excess Production Capacity Undermines Stainless Steel Prices

Stainless steel prices continue to show few signs of recovery. Selling values, in Europe, have been below producers breakeven levels since a collapse in transaction figures, and the widespread adoption of effective pricing, in the summer of 2018.

Moderate increases, in excess of rises in alloy surcharges, were reported in the ea rly months of this year. Now, the prospect of falling raw material costs, in combination with mediocre demand, is applying negative pressure to nominal basis figures.

Transaction values are also softening in the Far East, where activity is subdued, while production capacity continues to expand.

Section 232 action, in the United States, led to an immediate rise in domestic stainless steel prices, when first introduced. Since then, however, transaction values have fallen back to a level that is more in line with international markets.

The European Commissions safeguarding measures were planned to prevent a flood of imports, in the wake of the US governments actions, and have had little, if any, effect in boosting local prices, in the EU.

Market participants might expect a pricing boost from the value of one of stainless steels key raw materials, nickel. LME nickel stocks are at their lowest point in more than six years. Furthermore, with demand for nickel growing, due to expected consumption in the manufacture of batteries for electric cars, a deficit in supply of the metal is predicted, in the coming years.

Commodity prices, however, are influenced by a complex range of factors, beyond the market fundamentals for the particular material. It is in this context that nickel values are, currently, quite becalmed.

The main negative factor affecting stainless steel selling values remains production overcapacity. Producers in the established steelmaking regions have struggled to fill their schedules, in recent years. Now, with substantial new production capability coming on stream in countries including India, China, and Indonesia, it is difficult for sellers to make the case for increasing prices.

MEPS Forecasts Global Stainless Steel Production Growth to Slow Down

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MEPS Forecasts Global Stainless Steel Production Growth to Slow Down

MEPS forecasts global crude stainless steel production at 1.82 billion tonnes, in 2019. This equates to an increase of 0.8 percent, compared with the figure recorded in the previous year. A slowdown in stainless steel demand growth is expected, as economic conditions soften, worldwide. A number of factors are adversely affecting stainless steel consumption, including political uncertainty, rising trade tensions and moderating business confidence.

MEPS predicts that growth in global stainless steel production and demand will slow in the long term, compared with the rapid expansion witnessed since the turn of the millennium. The stainless steel industry is entering a mature phase of development. The sector faces many structural challenges, such as stainless steel plants running at below optimal levels of capacity utilisation and government subsidies for inefficient stainless steel mills. Nevertheless, cause for optimism about the future of the stainless steel industry is apparent. The global population will continue to rise and demand for housing, infrastructure, machinery and consumer goods will persist. Furthermore, with its high degree of recyclability, stainless steel will play a key role in the circular economy, which aims to minimise waste and make the most efficient use of resources.

China Stainless Steel Production

China overtook Japan as the worlds largest crude stainless steel producing country, in 1996. At that time, Chinese stainless steel output was just 13 percent of the world total. The countrys share of global production had increased gradually through the 1980s and 1990s, but then it surged in the 2000s. Rapid capacity expansion was undertaken to feed growing domestic requirements for stainless steel. By 2010, Chinese output accounted for 45 percent of the world total. Chinas crude stainless steel production had climbed fivefold, from 127 million tonnes in 2000 to 639 million tonnes in 2010. Growth in Chinas capacity, production and consumption slowed, in the 2010s, compared with the previous decade but, nonetheless, remained substantial.

In the past few years, the Chinese government has put an increasing emphasis on addressing the problems of excess stainless steelmaking capacity and high pollution levels. In the first half of 2017, hundreds of induction furnaces, with a combined annual production potential of approximately 120 million tonnes, were closed. Subsequently, the national authorities are now able to capture a more accurate figure for the countrys total stainless steel output, for inclusion in the official statistics. MEPS had previously highlighted irregular finished stainless steel output tonnages from the reported crude stainless steel production figures. A number of electric arc furnaces were installed to replace the obsolete induction furnaces. In the long term, increased domestic scrap availability and environmental concerns should increase the attractiveness of the EAF stainless steelmaking route. Nonetheless, the BOF route is likely to remain the main source of stainless steel supply as a result of recent investments in blast furnaces.

IndiaStainless Steel Production

India surpassed Japan as the worlds second largest stainless steel producing nation, in 2018. The government has set a target of raising annual stainless steelmaking capacity to 300 million tonnes, with an eighty-five percent plant utilisation rate, by the 2030/2031 fiscal year. Current levels of growth in stainless steel demand and supply make this aim difficult to achieve. Amongst the many obstacles are the availability of infrastructure, land and raw materials, along with the substantial capital expenditure required by the, already indebted, domestic stainless steelmakers. Nonetheless, MEPS expects the increases in Indian stainless steel production and consumption to be the highest in the world, over the long term.

USA Stainless Steel Production

The United States was the third largest stainless steel producing nation, between 2000 and 2014, with the exception of 2009 amidst the Great Recession. Fiscal stimulus and Section 232 import measures have provided a boost to US stainless steel demand and production, in the past couple of years. However, the long-term outlook is relatively pessimistic. Economic activity is forecast to slow. A rising risk of recession, over the forecast period to 2023, is apparent.

South Korea Stainless Steel Production

South Korea became an established top ten stainless steel producing country in the late 1980s. The countrys crude stainless steel capacity increased by around 70 percent between 2000 and 2013. Output is forecast at around 72 million tonnes per year, over the forecast period. Despite the expectation of minimal output growth, in the coming years, plant utilisation is likely to remain at a relatively high level.

Brazil Stainless Steel Production

Since 1983, Brazil has been amongst the worlds ten largest stainless steel producing countries. A recession in 2015 and 2016 had a substantial negative impact on stainless steel output and demand. A modest recovery is anticipated over the forecast period. Growth in gross domestic product is predicted to average more than 2 percent in the 2019-2023 period.

Iran Stainless Steel Production

Iran is likely to feature in the worlds top ten stainless steelmaking nations, for the first time, in 2019. The authorities target stainless steelmaking capacity of 55 million tonnes per year by 2025. The country benefits from substantial reserves of natural gas and iron ore. However, MEPS predicts that the long-term goal will not be achievable, due to the substantial levels of finance and infrastructure required. Nonetheless, considerable growth in stainless steel output is envisaged. New electric arc furnace stainless steelmaking and direct reduced ironmaking capacity is being brought on-stream.

Vietnam Stainless Steel Production

Vietnam should establish itself inside the worlds top fifteen largest stainless steelmaking nations, in 2019. It is forecast to be the third main contributing country, after India and Iran, to global crude stainless steel production growth, in the period to 2023. A substantial amount of new stainless steelmaking capacity is scheduled for installation. MEPS predictions account for the possibility that not all the plans will come to fruition, due to financing issues and import competition.

Is this the jungle law of the stainless steel market But more we need are positive energy

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Is this the jungle law of the stainless steel market But more we need are positive energy!

As the saying goes:maybe, we can see the truth but we can’t get an insight into ones mind.

Recently, the differences between 304 and 304D stainless steel become a controversial topic.

The sales boom driven by the new 304D stainless steel has gradually faded away. Recently, the flat-panel merchants suddenly began a heated discussion, reminding customers to distinguish between 304 and 304D stainless steel clearly!                    

That makes quite a few material suppliers feel unacceptable.

New products made of 304D stainless steel are developed to meet the different needs and tastes of customers. And if people sell 304D stainless steel as 304 stainless steel, it is a matter of ethics and integrity.

However, many people responded that even if there is no 304D stainless steel, manufacturers will sell 304J3 stainless steel as 304J1 stainless steel and 304 stainless steel.

In fact, we should regard these phenomena as manifestations of the “law of the jungle.” No matter how strong the lion is, it will not actively attack the hyena unless the hyena poses a great threat to it.

If we compare 304 stainless steel to a lion and likened the new product of 304D as a hyena, 304D stainless steel is an emerging threat for 304 stainless steel in decorative sheet market. Therefore, the intense discussion held by decorative sheet sellers may be a kind of counterattack.

In any event, we should be gratified that there are always people who are contributing to establish and maintain a good market order.

In conclusion, the promise written down is to avoid the dispute of any quality problem. After all, customers have the right to choose and know. And it is a test of integrity that whether suppliers will fulfill their notification duty or not.

Have no idea what is stainless steel Here is the beasic info you shoul know about!

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Have no idea what is stainless steel Here is the beasic info you shoul know about!

When people talk about Stainless steel, the first ideas came from the brain it maybe:    oh ! Stainless steel A kind of material which was generally used in our daily life!    besides, we knew nothing more about that.

Do you know what is stainless steel 

Do you know there are several grades in the stainless steel section 

So today, let’s get more basics information about this material

What is Stainless Steel 

Stainless steel is not just one thing. It is a term used for a group of iron-based alloys (a metal made by combining two or more metallic elements) that contain a minimum of 10.5% chromium. This combination with chromium is what gives stainless steel its resistance to corrosion. The chromium forms an ultra-thin layer on the steel that is referred to as the passive layer.   This passive layer is the key to preventing rust and other corrosion.

In addition, the alloy can only have a maximum of 1.2% carbon to be considered stainless. Beyond that, the alloy can contain a number of other elements in varying amounts including nickel, silicon, manganese, titanium, molybdenum, nitrogen, niobium, and others.

Suffice it to say that stainless steel is a combination of metals and other elements. It is the different combinations of these materials that give rise to the different properties of stainless steel.

Grades of Stainless Explained

While gauge refers to the thickness, the grade of steel is a reference to its components and the properties of the steel that arise from using various components. To begin, there are 3 terms you should be familiar with:

Austenitic Steel

Austenitic Steel is the most commonly used grade of stainless.It is considered easy to work with and is found in a wide variety of applications in a commercial kitchen.

Ferritic Steel

Ferritic Steel is magnetic steel that has a low carbon content. It is not as strong or corrosion resistant as an austenitic grade. This is the second most commonly used grade of stainless steel.

Martensitic Steel

Martensitic Steel is much less frequently seen in foodservice, this grade of steel is magnetic and is defined by its low level of nickel and a moderate level of carbon.

Duplex

There is a potential 4th category worth mentioning called Duplex. Duplex stainless steels are a more recent addition to the family of stainless steels.

See ! when you get that basic information about stainless steel, you may become one of a steel expert in your life   Last time, when you need to buy something made from stainless steel, you know what  s the best steel you need. 

Choose your best one metal reusable drinking straws from Vigor Dragon

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Choose your best one metal reusable drinking straws from Vigor Dragon

Old habits die hard and creating new ones is a pain. But it does help that reusable metal straws are so pretty to look at. They deserve to be treated like all your other home utensils.

Here, we introduce you to the most common metal reusable straw materials: stainless steel and titanium. You??ll also find insights on how this is all tied together to your lifestyle.

Stainless Steel Straws

Stainless steel is the most basic durable material that resists oxidation and corrosion.?Made of food grade material, a?304 stainless steel straw?is a safe and affordable option to drink out of. At the same time, Vigor Dragon can do SS316 as material for stainless steel straws. We have many feedbacks from Australia.

Titanium Straws

Titanium?is the most expensive material but also poreless. It??s the safest material for the long term and it also won’t release that metallic taste.

The colors in the straws are from the titanium itself instead of color dyes and lightweight titanium also means your cup won??t tilt when you finish drinking. Compared with stainless steel straws normal weight, a 8mm diameter titanium straw is only 13g.

Now, you know everything you need to know about metal reusable drinking straws and it should be easy to choose one. Vigor Dragon have many choices for you!