Grim Situation in Stainless Steel Industry

In the process of pulling investment to the change of economic development mode, the stainless steel enterprises bear the brunt of the impact on the industry, the overheated real estate investment, macroeconomic policy measures, letting the iron and steel enterprises make matters worse, the stainless steel enterprises in the new situation facing many years that dilemma did not experience before. The tight enterprise funds since 2011, ever-changing market and the high raw material and fuel make the entire stainless steel coil industry declines sharply since the fourth quarter. Showing a continued decline trend on the external environment, the gross domestic product (GDP), the country's fixed assets investment, especially real estate investment growth slowed down significantly, the steel industry needs support dwindling. For the steel industry, on the one hand, the country's steel output continues to maintain a growth momentum slowed down, and on the other hand, the demand for steel is also slowing down.

Crisis Causes of Stainless Steel Enterprises

Affected by the changes in the economic cycle, the adjustment of economic structure, raw material prices fluctuated wildly, highlight the contradiction between market structure, as well as general industry overcapacity and many other factors, stainless steel sheets enterprises in recent years, generally showing a cut-off, semi-shutdown, more production and more losses the embarrassing situation. Depth analysis of the root cause is the cause of this situation, from a macro point of view, the main domestic and international macro-economic situation and development of the industry situation has changed dramatically, to adapt to the development needs of domestic and international economic situation, China has put forward the transformation of economic development mode, driven by investment. The economy mainly to consumer-driven economy based structural change ideas, at the same time, in connection with the compatible national macro-control policies on the real estate industry a tremendous impact on the iron and steel enterprises.

Stainless Steel Enterprises Face Challenges

Faced with the crisis of survival and development of the stainless steel enterprises, the enterprises themselves should be actively face to the difficulties, through innovative incentives to promote the full increase revenue, ensure maximum limit losses, reduce losses. First, adhere to self-pressurized, proactive, production and management to achieve a breakthrough in the contrarian. The former system, the production side, the unfavorable conditions of the blast furnace production slump, give enterprises full focus in the stainless steel community of interests, the blast furnace production on track quickly, and to promote the stability of the overall production order smooth.

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