Stainless steel directly and indirect exports continue to be strongly supported by three major forces

In the first quarter of this year, the export volume of stainless steel (including indirect exports) has accounted for more than 30 % of its total stainless steel demand. It is expected that the direct export volume of the crude steel (converted from steel, the export of billets and coarse forged) will continue to continue a large amount, which is likely to exceed the 100 million tons of integers. The export volume of mechanical and electrical products throughout the year will also increase at a high level, and it will continue to become the export of Chinese goods. This year, two aspects of Chinese steel (direct and indirect) exports continued to be strong, mainly to be supported by three major forces.

 

 

     One is the strong advantage. Having higher -tech production equipment, higher labor productivity, and lower manufacturing and logistics costs, therefore has the most powerful comparative advantage in the world. It is a serious overcapacity and economic distortion of the noise of the western media, which is to implement the trade discrimination and high tariffs on Chinese goods. Since China's stainless steel and steel -consuming steel products are quality and low price, under normal market economy conditions and normal trade rules, any company will give priority to buying Chinese stainless steel and steel products, which is self -evident.

 

 

     The second is that the international market demand has rebounded. At this stage, the global economy and manufacturing industry has shown a recovery trend. Since the beginning of this year, the US labor market is strong, consumer expenditure is stable, and real estate and manufacturing have recovered, resulting in a high level of price operation, and forcing the Federal Reserve to postpone "interest rate cuts". The increase in trade volume of global economic recovery and international markets will inevitably produce the import demand for Chinese stainless steel products and steel products.

 

 

     The third is the depreciation of the RMB exchange rate to the US dollar. For a period of time, the two major economies in the world have contrary to the direction of China -US monetary policy. While the Fed continued to increase rate hikes, the People's Bank of China continued to cut interest rates, which thus formed and expanded the interest rate difference between China and the United States, forming a depreciation pressure on the exchange rate of the RMB to the US dollar. Recently, the Federal Reserve has postponed "interest rate cuts", and the US dollar interest rate has run at a high level, continuing to support the "US dollar" position, and generates the pressure of RMB exchange rate to the US dollar. The decline in the exchange rate of the RMB against the US dollar is undoubtedly conducive to the export of Chinese stainless steel products. Not only that, at present, China is facing a certain pressure of "industrial products", and it also enhances the export competitiveness of stainless steel and steel products accordingly.