Increasing appreciation of the RMB exchange rate behind the stainless steel market impact is reflected in what way ?
Conducive to imports of raw materials
RMB appreciation will undoubtedly help reduce China's foreign including laterite nickel ore, iron ore and other raw materials procurement costs , but the combination of the industry 's development, its impact is not great. In recent years , the domestic stainless steel production was gradually growing rapidly , until 2102 , stainless steel crude steel production 16,087,000 tons , an increase of 1.996 million tons , an increase of 14.17% , while with the corresponding domestic demand for raw materials such as nickel laterite demand for imports .
However, data from the statistical point of view, June nickel ore imports totaled 5,421,000 tons , down 6 percent , a decrease of 14.8% , which is not primarily affected by the appreciation of the renminbi , but the industry itself its own ferronickel production losses due to a reluctance year.
Import and export of stainless steel sheet
Generally speaking, the appreciation of the national currency would adversely affect exports . In particular, China's steel exports varieties category from the point of view , China's exports mostly primary , low value-added products, since from 2005 , sheet, pipe starts to substantially increase the proportion of total exports and became the main export varieties , followed by stick wire . Domestic steel imports high-tech, high value-added products is still high, such as hot-rolled ( cold-rolled ) steel bar rods , hot-rolled wide strip alloy thick , high-pressure boiler pipe , etc., while some thin stainless steel precision stainless steel strip still must supply gap , the need to make up through imports .
The data from the export point of view , the recent volume stainless steel exports have declined for three consecutive months , April exports of 185,000 tons of stainless steel coils , May exports fell to 16.3 million tons in June continued to decline to 15.5 million tons, which partly because the domestic stainless steel production capacity sharply after the release of a wide range of channels needed for digestion , spread abroad accelerates the pace of exports of stainless steel , but on the other persistent appreciation of the renminbi for the export of goods does have a certain degree of negative impact .
Promote the restructuring of the stainless steel industry
RMB appreciation will lead to lower import prices of many commodities . Under its influence, the domestic enterprises are facing greater competitive pressures. In this pressure , the domestic stainless steel production enterprises must further adjust product structure, improve the production process ( eg RKEF + AOD stainless steel smelting ) compete to reduce costs , improve service , so as to promote the adjustment of product structure , it is also through market forces accelerate inferior enterprises and the elimination of backward production capacity .
