Huaxiao Metal Corporation Limited.

Development Prospect of Stainless Steel Precision Strip

Prospect analysis of precision stainless steel strip 

(1) The necessity of the development of precision strip
1. The need for the adjustment of economic structure. The development of precision strip can effectively promote the development of electronic information, precision machinery and instruments, aerospace and other high-tech industries, actively promote the integration of information and industrialization, and accelerate the adjustment of economic structure and the transformation of growth mode.  2. The need of industrial structure adjustment. At present, the self-sufficiency rate of stainless steel precision strip in China is about 45%. High strength precision strip still needs to be imported from abroad with a large amount of foreign exchange. The development of high strength precision strip steel in China is the most important part in the structural adjustment of steel products.  3. The need to maintain steady economic growth.  Precision strip steel is a high value-added product, maintaining a gross profit rate of 16.1% in the extremely depressed environment of 2008. We will vigorously develop precision strip steel, improve the steel industry's ability to withstand market risks and maintain steady economic growth.

(2) The feasibility of the development of precision strip
The acceleration of economic restructuring has made the development of hi-tech industry and information industry maintain a certain growth rate. These industries play a stimulating role in the demand for precision strip steel, and to a certain extent, increase the demand for precision strip steel. In view of the downstream demand, the precision strip will have a large potential market demand due to the rapid growth of domestic automobile and household electrical appliances industry and the relevant policy subsidies given by the state.

(3) Risk analysis of technical barriers Stainless steel precision strip has high technical barriers, high production level requirements, low productivity utilization rate, and difficult to solve in the short term. Especially for stainless steel with a thickness of less than 0.l mm, only a few enterprises in China can produce at present. Because of the high technical barriers and the lack of advanced technical talents, many advanced production equipment purchased by precision strip enterprises cannot improve the utilization rate of equipment quickly. It takes a long time to adjust from the early stage to the stable quality, which will directly affect the enterprises to grasp the market opportunities and miss the profit cycle. Attention should be paid to this issue.
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