Analysis on the Development of China's Stainless Steel Industry

Stainless steel (Stainless Steel) is the abbreviation of stainless and acid-resistant steel. It is called stainless steel that is resistant to weak corrosive media such as air, steam, and water, or is stainless steel; and chemically resistant to chemical corrosion media (acid, alkali, salt, etc.) Corrosion steel is called acid-resistant steel.

With the rapid economic development, China's stainless steel production is increasing year by year. In 2019, the output was 29.4 million tons, and the apparent consumption was 24.05 million tons. China's per capita apparent consumption of stainless steel is 17.18 kg in 2019, and there is still room for growth in more developed countries.

The overall import and export volume of stainless steel in China showed a fluctuating growth trend. In 2019, the import and export volume was 1.119 million tons and 3.672 million tons respectively.

According to statistics, the top ten of China's stainless steel industry accounted for 81.08% in 2019, with a high degree of industry concentration and fierce overall competition.

1. China's stainless steel production is increasing year by year, with an output of 29.4 million tons in 2019

During the period 2010-2019, my country's stainless steel production has been increasing year by year. In 2019, my country's stainless steel output was 29.4 million tons, an increase of 10.09% year-on-year, and the growth rate further increased. In the first quarter of 2020, the national stainless steel crude steel output was 6.0799 million tons, a year-on-year decrease of 604,200 tons compared with the first quarter of 2019, a decrease of 9.04%. my country's stainless steel output has accounted for more than 50% of the world's stainless steel output, establishing my country's important position in the world's stainless steel market.

2. The overall apparent consumption of stainless steel in China is increasing year by year, and the apparent consumption in 2019 was 24.05 million tons

With the rapid development of the national economy, the people's living standards have improved significantly, which has stimulated the demand for stainless steel. During the period 2010-2019, my country's apparent consumption of stainless steel showed an overall growth trend year by year. The apparent consumption of stainless steel in my country in 2019 was 24.05 million tons, a year-on-year increase of 12.8%. In the first quarter of 2020, the downstream manufacturing industry was affected by the new crown pneumonia epidemic, and demand appeared weak. Apparent consumption was 4.9029 million tons, a year-on-year decrease of 806,100 tons compared with the first quarter of 2019, a decrease of 14.12%.

3. China's per capita apparent consumption of stainless steel is 17.18 kg in 2019, and there is still room for growth in more developed countries

In 2019, China's per capita apparent consumption of stainless steel was 17.18 kg, a year-on-year increase of 1.39 kg, an increase of 8.8%; apparent consumption increased by 9.19% year-on-year to 24.05 million tons, higher than expected. However, compared with the well-developed manufacturing industries in Italy, Taiwan, and South Korea, the per capita consumption of stainless steel is more than 30kg, and the strong industrial manufacturing countries Japan and Germany are more than 20kg. There is still room for growth in China's per capita consumption of stainless steel.

4. China's stainless steel import and export volume has shown a fluctuating growth trend. In 2019, the import and export volume was 1.119 million tons and 3.672 million tons respectively.

From 2010 to 2019, my country's stainless steel import and export volume showed a fluctuating growth trend. In 2019, China imported 1.119 million tons of stainless steel, down 39.6% year-on-year, and exports were 3.672 million tons, down 8.1% year-on-year. The main reasons for both the decline in imports and exports are trade barriers in Europe and the United States and China's anti-dumping of stainless steel in Indonesia and other countries. In the first quarter of 2020, the country imported 21,600 tons of stainless steel, a decrease of 246,600 tons compared with the first quarter of 2019, a decrease of 53.94%; the export of stainless steel was 810,000 tons, an increase of 12,700 tons, an increase of 1.59%.

5. The top ten companies in China's stainless steel industry account for 81.08%, the industry is highly concentrated, and the overall competition is fierce

At present, China's stainless steel production capacity accounts for more than 50% of global production capacity , and the industry is highly concentrated. As of the end of 2019, the top ten stainless steel industry accounted for 81.08%. The overall competition is fierce. And with the concentrated release of new steelmaking capacity in the future, China The concentration of the stainless steel industry will also increase further.

Leading companies include Tsingshan Group, Taigang Stainless Steel, etc. Tsingshan Holding Group Co., Ltd. is currently the world's leading stainless steel company, and its output accounts for about 20% of global output .TISCO Stainless is a domestic long-established stainless steel company, leading the industry. Its products are mostly high-end stainless steel products. However, Tsingshan Holdings, relying on its own resource advantages and integrated low-cost smelting methods, continues to expand in scale and has a tendency to catch up. . In the future, the battle for the leader of the stainless steel industry will most likely start between these two companies.

According to Mysteel statistics, the crude steel output rankings of 33 domestic stainless steel manufacturers above designated size (including Indonesia's Qingshan) in 2019 are as follows:

For more data and analysis, please refer to the "Foresight Industry Research Institute". At the same time, the Foresight Industry Research Institute provides industry, industry declaration, industry and other solutions. Source Souhu