Market Analysis of Domestic Precision Belts

1. Domestic stainless steel precision strip industry layout features

China's stainless steel precision strip industry gathers in developed regions in the east, especially in the Yangtze River Delta region. Among them, the number of precision steel strip companies in Jiangsu, Shanghai, and Zhejiang reached 8 and accounted for 57% of the total number of precision strip companies. Four other companies were located in more developed regions such as Beijing, Shandong, and Liaoning. The precision strip project under construction by TISCO will also be put into production soon.

2. Analysis of supply conditions of stainless steel precision strip (only fine strip products with a thickness of less than 0.5mm)

Between 2005 and 2008, China's stainless steel precision strip production capacity and output all achieved rapid growth. The average annual growth rate for the four years was 32.2% and 26.6% respectively. The rapid growth of production capacity and output reflects on one hand the high investment enthusiasm of China's precision strip steel industry and investors' confidence in the development of the industry. On the other hand, it also shows that the downstream demand for precision strip steel in China is relatively strong.

After the high-level leap-frogging of stainless steel precision strip in China, the growth rate of production capacity and production slowed down in 2007 and 2008. The main reasons are: fine belt manufacturing technology is more difficult, and it is necessary to explore and stabilize the production process. Capacity; shortage of senior technical personnel; economic impact.

From 2005 to 2008, the changes in the proportion of precision strips in the three specifications indicated that the growth rate of precision strips with thickness specifications below 0.1 mm was significantly faster. This shows that the greater the added value brought by the thinner thickness gauges, the more stringent the production companies are. In 2006, the proportion of the production volume of 0.3-0.5 mm in thickness increased, which was mainly due to the fact that the newly produced fine belt production line was mainly based on production thickness specifications of 0.3-0.5 mm fine belts. Although the growth rate of fine belts with a thickness of 0.1 mm or less is much higher than other specifications, the growth base is relatively small, and its production as a percentage of total production has a limited increase.

1. Domestic stainless steel precision strip industry layout features

China's stainless steel precision strip industry gathers in developed regions in the east, especially in the Yangtze River Delta region. Among them, the number of precision steel strip companies in Jiangsu, Shanghai, and Zhejiang reached 8 and accounted for 57% of the total number of precision strip companies. Four other companies were located in more developed regions such as Beijing, Shandong, and Liaoning. The precision strip project under construction by TISCO will also be put into production soon.

2. Analysis of supply conditions of stainless steel precision strip (only fine strip products with a thickness of less than 0.5mm)

Between 2005 and 2008, China's stainless steel precision strip production capacity and output all achieved rapid growth. The average annual growth rate for the four years was 32.2% and 26.6% respectively. The rapid growth of production capacity and output reflects on one hand the high investment enthusiasm of China's precision strip steel industry and investors' confidence in the development of the industry. On the other hand, it also shows that the downstream demand for precision strip steel in China is relatively strong.

After the high-level leap-frogging of stainless steel precision strip in China, the growth rate of production capacity and production slowed down in 2007 and 2008. The main reasons are: fine belt manufacturing technology is more difficult, and it is necessary to explore and stabilize the production process. Capacity; shortage of senior technical personnel; economic impact.

From 2005 to 2008, the changes in the proportion of precision strips in the three specifications indicated that the growth rate of precision strips with thickness specifications below 0.1 mm was significantly faster. This shows that the greater the added value brought by the thinner thickness gauges, the more stringent the production companies are. In 2006, the proportion of the production volume of 0.3-0.5 mm in thickness increased, which was mainly due to the fact that the newly produced fine belt production line was mainly based on production thickness specifications of 0.3-0.5 mm fine belts. Although the growth rate of fine belts with a thickness of 0.1 mm or less is much higher than other specifications, the growth base is relatively small, and its production as a percentage of total production has a limited increase.

4, stainless steel precision strip development prospects

(1) The necessity of the development of precision strip

Economic restructuring needs. The development of precision strip steel can effectively promote the development of high-tech industries such as electronic information, precision machinery and instruments, aerospace and aviation, actively promote the integration of informatization and industrialization, and accelerate the adjustment of economic structure and the transformation of growth patterns.

Industrial restructuring needs. At present, China's stainless steel precision strip self-sufficiency rate is about 45%, and high-strength precision strip steel still needs a large number of ** imported from abroad to vigorously develop high-strength precision strip steel in China, which is the most important factor in the current structural adjustment of steel products. weight.

Maintain the need for stable economic growth. Precision strip steel is a high-value-added product, and it still maintains a gross profit margin of 16.1% in an extremely sluggish environment in 2008. We will vigorously develop precision strip steel to improve the steel industry's ability to withstand market risks and maintain stable economic growth.

(2) The feasibility of the development of precision steel strip

The country’s accelerating economic restructuring has enabled the development of high-tech and information industries to maintain a certain growth rate and even speed up. These industries have a positive effect on the demand for precision strip steel, which, to a certain extent, increases the demand for precision strip steel. From the current expected growth of the major demand for stainless steel precision strip downstream, due to the rapid growth of domestic auto and home appliance industry demand and the relevant policy subsidies provided by the country, there will be a large potential market demand for precision strip products.

(3) Risk Analysis of Technical Barriers

Stainless steel precision strips have high technical barriers, require high levels of production technology, have low utilization rates, and are difficult to resolve in the short term. In particular, precision strips of high-strength alloys such as stainless steel, titanium, and zirconium with a thickness of 0.1 mm or less are currently produced by only a few companies in China, and the production capacity has been insufficient. Due to the high technical barriers and the lack of advanced technical personnel in the industry, many sophisticated production equipment purchased by precision strip companies cannot quickly increase equipment utilization. It takes a long adjustment process from early production to stable quality, which will directly affect Enterprises grasp market opportunities and miss the profit cycle. Attention and attention should be given to this issue.