May 16, 2024

"Cake" attractive steel plate market is booming


On November 26, Beijing Shougang Co., Ltd. announced that the company will jointly invest with Shougang Corporation and Beijing Automobile Investment Co., Ltd. to establish Beijing Shougang Cold-rolled Sheet Co., Ltd. It is understood that the total investment of the project is about 6.4 billion yuan and the registered capital of the company is 2.6 billion yuan. Among them, Shougang’s investment in kind and currency amounted to RMB 182729.45 million, accounting for 70.28% of the registered capital; Shougang Corporation invested RMB 25,270.55 with legally-owned land use rights, accounting for 9.72 of the registered capital. %; Beiqi Investment contributed 520 million yuan in currency, accounting for 20% of registered capital.

Shougang Corporation and Shougang Corporation invested a total of 2.08 billion yuan, accounting for 80% of the company's registered capital.

According to analysts from the industry, Shougang has cooperated with BAIC in this respect and has invested heavily in the field of automotive steel plates. Apart from forming a supporting industrial chain with BAIC, it can also radiate the automotive industry belts such as Hebei and Tianjin that have already formed. The profit prospects are very broad.

"cake" seductive

It is understood that in the composition of raw materials for automobile production, steel consumption accounts for about 70%-80% of the total consumables, and the amount of steel used to build a car can reach about 1 ton, and the amount of trucks is more. The steel products used in automobile manufacturing include steel profiles, medium plates, thin plates, steel strips, high-quality steel products, and steel pipes, among which are mainly thin plates and high-quality steel.

China is in the period of rapid development of the automotive industry. In recent years, production and sales have continued to boom. Some experts predict that in 2008, the Chinese auto market is expected to maintain a high growth rate of 20%, and the annual sales volume is expected to exceed 10 million units, and the situation in the future will continue to be positive. The steel plate production lines of China's iron and steel enterprises are launched one after another, independently researching and developing or cooperating with foreign large steel groups to capture the beach market in order to increase new growth points.

In recent years, domestic steel companies such as Baosteel, Benxi Iron and Steel and Wuhan Iron and Steel have successively made efforts in this area. According to figures from Baosteel, from January to October this year, the cumulative sales of auto plates totaled 2.67 million tons, surpassing the total volume of the previous year. At present, the market share of Baosteel's automotive steel plate in China has exceeded 50%. Some high-grade products have already entered the purchasing systems of multinational companies such as Fiat, Ford and General Motors, and its production capacity is still expanding.

As a high value-added steel product, automobile steel plate is a concentrated expression of the level of technological equipment and R&D capabilities of the company. In terms of product innovation, since last year, Masteel independently developed CSP cold-rolled technology to produce automotive inner plates; Tangshan Iron & Steel developed a successful automobile structural steel, and the company started to have the ability to manufacture automotive brake pads; Pangang developed ST37- 2Structural hot-rolled steel strip used for the production of automobile and motorcycle shock absorbers; Recently, Baosteel trialed hot-dip galvanized TRIP steel high-strength automotive panels with a strength class of 600 MPa, and its performance has reached the international level. Product level.

In addition, domestic steel companies also actively cooperate with downstream auto companies, such as Baosteel's cooperation with SAIC, FAW, Dongfeng, and Geely; Masteel also has related cooperation projects with JAC, Chery and Nanjing Auto.

Industry concerns

The domestic automotive steel plate market is a red flag, but there is still a long way to go before the product is fully domesticated, and the industry is facing some challenges.

First, the contradiction between the supply and demand of steel plates for high-end and high-grade vehicles is prominent and cannot be completely self-sufficient As joint venture brands continue to enter and self-owned brands continue to grow, the production capacity of domestic high-end and high-end models has expanded, and the demand for high-strength steels, surface-treated steel plates and ultra-deep-drawn steel plates has increased. Figures show that about 30% of China's high-end automotive steel plates rely on imports. China National Automobile Industry Association deputy secretary Shi Jianhua pointed out at the 2007 China Steel Supply and Demand Consortium that there are import requirements for special steel products such as crankshaft steel and gear steel, some rods and rods, and hot rolled plate. Taking alloy steel rod and wire as an example, compared with the same period of last year, the import volume in the first three quarters of this year increased by approximately 20%, and the price rose by approximately 15%.

Second, local steel companies are surrounded by foreign capital. It is understood that most of the world’s advanced steel production technologies are in the hands of international steel giants such as Japan’s Nippon Steel, JFE, and Germany’s ThyssenKrupp (TKS). Although through joint ventures and alliances, Sino-foreign iron and steel companies have already achieved resource sharing to some extent, but the gap between the two still exists inevitably. Although China's "Iron and Steel Industry Development Policy" promulgated in 2005 clearly stipulates that investing in China's steel industry does not allow foreign investors to control in principle, it is reported that Posco is considering buying a minority stake in a steel manufacturer in China and seeking a legal framework. Exercising management control to achieve its expansion in the Chinese market.

Once again, the homogenization of automotive steel products is serious, and the competition for low-end products is fierce. All localities are accelerating their construction. Manufacturers are scattered, industrial concentration is low, and there is potential for excess production capacity. According to statistics, China's actual steelmaking capacity last year was 470 million tons, and 150 million tons are still under construction. If completed, the production capacity will exceed 600 million tons. Last year, domestic steel consumption was about 350 million. Tons, the industry continues to develop, or the imbalance between supply and demand. At the same time, the Chinese steel industry is currently under pressure from rising prices of raw materials such as iron ore and coke. According to statistics from the China Iron and Steel Association, from January to September this year, the cost of manufacturing steelmaking pig iron in domestic large and medium-sized steel companies increased by 11.33% year-on-year.

The "Iron and Steel Industry Development Policy" requires that the steel industry must achieve industrial upgrading, achieve sustainable development, and increase the good product rate to meet the needs of the automotive industry and other special steel for the development direction. According to the development trend of steel products for automobiles, the composition of automotive steel products, the localization of parts and components, the state of assembly, and the prediction of the automotive market, the demand for steel products in China's auto industry will remain very strong in the next few years. Shi Jianhua said that by 2010, the demand for automotive steel will increase to 27.67 million tons, including 20,750 tons of steel plates and 6.92 million tons of structural steel.
The prospect of China's auto steel market is promising, but it is necessary to effectively upgrade the technical level and quality of automotive steel plates, realize resource integration, organizational structure adjustment, optimization, product structure adjustment, industrial upgrading, and domestic iron and steel enterprises have a long way to go.


Class 150 Slip On Flange

Class 150 Slip On Flange

Ansi 150 Flange,Flange Ansi 150 Slip On,Ansi Class 150 Flange Manufacturers and Suppliers in China

Ansi 150 Flange,Flange Ansi 150 Slip On,Ansi Class 150 Flange,Class 150 Slip On Flange

China Ansi 150 Flange,Flange Ansi 150 Slip On,Ansi Class 150 Flange,Class 150 Slip On Flange, we offered that you can trust. Welcome to do business with us.

Ansi 150 Flange,Flange Ansi 150 Slip On,Ansi Class 150 Flange,Class 150 Slip On Flange

Jiangyin Zhonghai Precision Machinery Co.,Ltd , https://www.zhonghaiprecision.com