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The Low Price Sounds the Alarm to the Stainless Steel Seamless Tube
On the 2012 China coal industry chain supply and demand situation Forum, Wang Xiaoqi the vice-chairman of China Iron & Steel Association said, "nowadays, the profit of one ton of steel in Stainless steel seamless pipe industry is ￥1.68."
At present, the time of soaring prices, cabbage is sold ￥5/kg, the stainless steel seamless tube is selling at a reduced price. It is unimaginable that the profit of one ton of these commodities can’t buy a subway ticket.
Continued low price is squeezing the profit space of Steel enterprises. China Iron and steel industry association’s data shows, in the first half of this year, steel industry sales profit margin from 3.06% last year, down to only 0.13%.
Overcapacity sounded the alarm for the manufacturing industry crazy expansion
Rome was not built in a day, the overall prosperity of stainless steel seamless pipe industry has gone. The excessive expansion of production capacity has finally caused the situation today, even in developed countries, the iron and steel industry has experienced such a stage. Limiting excess capacity has become the consensus of the industry. In order to control the production capacity and meet the increasingly stringent environmental requirements, since October 1st, Standard conditions for steel industry officially started. Analysts points out that this new rule is equivalent to improve the industry's access threshold, but at the same time, for the confused and abnormal industry, how much of this policy can play a role is uncertain. Iron and steel industry itself is in urgent need of this opportunity to actively change the mode of production, adjust the product structure, reduce production costs, achieve the transformation of the market. China made will still be full of competitiveness in the world, we have to actively “going out”, fully release the production capacity. To solve the problem of "going out", we can find space for China's manufacturing capacity and manufacturing capital.
JiaXing MT Stainless Steel Co., Ltd
