2017 stainless steel production will grow further

"Nickel and stainless steel is a pair of hardships, it can be said that the relationship between fish and water. In fact, the trend of stainless steel will affect the market situation of nickel." China Union Steel Network stainless steel manager Han Jianbiao said. Nickel market supply can not be separated from the supply of stainless steel market, 2017 stainless steel market situation? Will there be incremental? What about downstream demand?

After the financial crisis, the market price of stainless steel has been in the process of falling. Until China's implementation of a strong supply side of the reform, the supply side of the change, the demand side also made adjustments accordingly, the supply and demand side of the change, the price bottomed out. At the same time, nickel prices associated with stainless steel have also undergone the same changes, the overall trend of stainless steel and nickel prices are basically the same.

Han said the 2017 stainless steel production capacity is still bottoming out in 2016, almost all steel mills are making money in the case, 2017 steel mills will continue to expand or build capacity, is expected in 2017 new stainless steel production capacity of 7%, the new Increase production of 2.7 million tons.

2015 is expected to 2016 stainless steel production growth of 3% to 5%, in fact this year, stainless steel production has exceeded expectations, an increase of nearly 14%. Next year, stainless steel production is expected to have more than 10% increase.

At the same time, stainless steel capacity utilization is also improving. Capacity utilization is only 63% in 2015, 67% in 2016, 71% in 2017, and substantial increase in stainless steel in China. The actual consumption will be slightly lower than the apparent consumption, inventory will rise slightly; but the future of China's stainless steel consumption is still a lot of development space, such as rail transportation, road facilities, public facilities, machinery and equipment and other fields.

2017 stainless steel production is expected to 27 million to 28 million tons, which does not contain Indonesia Qingshan Iron and Steel production capacity of 2 million tons; can release the output of 1 million tons, excluding Indonesia 1 million tons; 2017 the entire demand is expected to increase by 3 million tons about.

From the export point of view, 2016 stainless steel exports of about 3.9 million tons, 2017 up to 3.9 million tons, almost flat with 2016.

Han Jianbiao pointed out that, first of all, in the steel industry in 2017 continued production capacity in the process, the stainless steel will also be related to the problem of production capacity; environmental pressure will be further increased; enterprise manufacturing costs will increase, including freight, The cost of raw materials, so that the pressure of steel plants in 2017 is relatively large.

Second, this year downstream replenishment, export demand is relatively strong, 2017 may be a small shrink. Prices lead to consumption, end users and traders will be part of the appropriate absorption of inventory. In addition, due to real estate control measures, 2017 consumption of steel will be some suppression.

Again, in 2017 the entire silicic acid industry competition intensified, private integration of steel mills competition significantly.

Finally, Han Jianbiao that the market price of stainless steel market in 2017 will not be as big as the situation in 2016, but there will be stage to adjust.

In the context of rising capacity and rising costs, steel mills will be the pursuit of profit as the goal. But the whole price of 2017 will focus on the move, 2017 stainless steel market prices will be adjusted around the steel price line up and down.