Categories
Contact Us
Zhejiang Zhonggang Mining Co.,Ltd
Add:Fl19th,Huameng Business Plaza, No.2 Chezhan Road, Lucheng District, Wenzhou, Zhejiang Prov
Tel:+86-0577-86008557
Mob:+8613600679430
E-mail:marketing@zjzgsteel.com
News
Home > News > Content
Strength Of The Belt And Road:After The Cost Disadvantage, Taiwan's Stainless Steel Output Plummeted!
Sep 18, 2018

Observer Network noted that as a result of the China-Indonesia cooperation when the "21st Century Maritime Silk Road" was proposed in October 2013, Qingshan Indonesia was in full production in the first quarter of this year. The third stainless steel steelmaking project put into operation in June will further affect the market.


12341123.jpg


On October 3, 2013, President Xi Jinping and Indonesian President Susilo, who are on a state visit to Indonesia, attended the China-Indonesia Business Luncheon in Jakarta.


13444146.jpg


At the meeting, the two sides witnessed the establishment of the Qingshan Industrial Park in Indonesia and the signing of the first entry project.

 

“Lose money per ton when we producing”

 

According to the above report, the import of stainless steel embryos and hot rolling from the Qingshan indonesia in Indonesia has increased to 60,000 tons in a single month, and will reach 720,000 tons in the whole year, accounting for more than 65% of its upstream steelmaking capacity, and the proportion is expected to come. The higher.

 

Taking Tang Rong as an example, in order to maintain the job opportunities of employees, the company's steelmaking volume in July was only about 8,000 tons, a record low.

 

Due to the coincidence with the product line of Castle Peak in Indonesia, the loss per ton is 1 ton. It is expected that the future self-refining capacity of Tang Rong may continue to decrease.

 

Zhang Jinyu, general manager of Yunqiang, the largest stainless steel pipe factory in Asia, pointed out that the whole of Taiwan's stainless steel upstream and downstream are fed from Qingshan, resulting in “upstream change to middle and midstream,midstream change to  Downstream.

 

In other words, the steel mill in Taiwan is becoming a processing plant, and the processing plant has become a distributor.

 

Lin Yishou, chairman of the association, said that now how to open stainless steel in Taiwan and how the market is distributed is almost always dominated by Castle Peak, rather than local steel mills. This phenomenon is not normal.

 

In addition, Zhang Wenchun, former general manager and current consultant of Huaxin Lihua, said that stainless steel is a basic industry and a part of the defense industry. If it is abandoned, it will have a bad influence.


Indonesian Qingshan is running at full capacity


3333.jpg


"International Stainless Steel Forum" (ISSF) data screenshot, unit: thousand tons.


"International Stainless Steel Forum" (ISSF) data screenshot, unit: thousand tons.

 

According to the data released by the International Stainless Steel Forum (ISSF) on July 10, in the first quarter of this year, Brazil, Russia, South Africa, South Korea, Indonesia and other production totaled 1.439 million tons, an increase of 70.2% year-on-year, an increase of nearly 594,000 tons of capacity. .

 

Observer's network found that the Qingshan stainless steel steelmaking project in Indonesia was divided into three phases. The first two phases were put into operation in July 2017 and September 2017, respectively, with a capacity of 1 million tons.

 

On June 20 this year, Indonesia's Qingshan Phase III 1 million tons stainless steel steelmaking project was put into operation, marking the annual production capacity of Indonesia's Qingshan stainless steel reached 3 million tons.

 

Roughly calculated, the increase of 594,000 tons in the first quarter is the result of the commissioning of Qingshan, Indonesia, which has increased the production capacity by nearly 200,000 tons per month, which is basically in line with the annual output of 2 million tons.

 

In other words, Indonesia Qingshan is already in full operation in the first quarter.

 

"Do not rule out the mainland's net import of stainless steel, but the connotation..."

 

Due to the abundant nickel resources around the site, by mid-2017,  Indonesia Qingshan have been built from nickel mining to stainless steel hot rolling.

 

3 million tons also suddenly increased the capacity of Indonesia's stainless steel crude steel from zero to the second in the world (the world's first is of course the mainland). In this context, in 2017, the mainland stainless steel trade pattern has also changed. However, it is very different from the situation in Taiwan.


444444.jpg


China is a typical "nickel scarce" country, and nickel is heavily dependent on overseas imports such as Indonesia and the Philippines. Nickel is the most important component of the 300 series of stainless steel.


From the data point of view, the observer network found that last year, the mainland imported 1.15 million tons of stainless steel, an increase of 412,000 tons, an increase of 55.83%.


In the same period, the mainland's stainless steel exports were 3.984 million tons, an increase of only 97,000 tons, an increase of 2.5%. The ratio of export volume to import volume was 3.46, a sharp drop from 5.3 in 2016.

(Observer's net note: 2016 stainless steel imports 716,000 tons, exports 3.937 million tons)


According to "China Ferroalloy Online" reported on February 7, Qingshan Iron and Steel said at the Board of Directors' 2017 year-end summary meeting that this was mainly due to "the Indonesian Qingshan stainless steel returned to the domestic market."

 

Qingshan said, "It is estimated that China's stainless steel imports will exceed 2 million tons in 2018... The ratio of export volume to imports will further shrink to around 2:1."

 

"It is not ruled out that China will once again become a net importer of stainless steel in the next few years. Of course, the connotation of stainless steel imports has undergone tremendous changes. After all, it is the return of products invested by Chinese-funded enterprises to the domestic market."

 

At that time, the "21st Century Maritime Silk Road" initiative was proposed.


4444.jpg


Qingshan Industrial Park overlooks the map.


As a key project of the Belt and Road Initiativelanding in Indonesia, in October 2013, under the witness of Xi Jinping and then Indonesian President Susilo, the two sides signed an agreement with a total investment of 4 billion US dollars in Indonesia, Central Sulawesi. The Qingshan Industrial Park was built in Morowali County.

 

It was during that visit that Xi Jinping proposed to the world the construction of the "21st Century Maritime Silk Road."

 

In just a few years, the park has turned a remote fishing village into an important global base for ferronickel and stainless steel.

 

According to the official website of Qingshan, Indonesia, it is expected that by October 2018, all projects in the entire industrial chain of the park will be completed and put into production.

 

By then, the production capacity of nickel-iron will reach 2 million tons, stainless steel will be 3 million tons, ferrochrome will be 600,000 tons, and power generation capacity will be 1.96 million kilowatts.


  • Newsletter
  • Categories
  • Contact Us
    Zhejiang Zhonggang Mining Co.,Ltd
    Add:Fl19th,Huameng Business Plaza, No.2 Chezhan Road, Lucheng District, Wenzhou, Zhejiang Prov
    Tel:+86-0577-86008557
    Mob:+8613600679430
    E-mail:marketing@zjzgsteel.com
  • QR Code
  • Copyright © Zhejiang Zhonggang Mining Co.,Ltd All Rights Reserved.