The period of the lowest demand for 304 thick-walled stainless steel pipes has passed. Why is the Chinese economy experiencing a soft landing? Perhaps it's because of the characteristics of the branded stainless steel tubes, the Chinese economy did not form a large bubble, nor did it develop a significant bubble trend or overheating. Therefore, there was no need for a hard landing or a crisis to correct the stainless steel market. Instead, we have gone through a relatively smooth transition. The impact on the stainless steel industry remained within a manageable range.
Dingte Stainless Steel Co., Ltd. reported.
It is expected that the Chinese economy will go through a phase of stabilization and recovery in 2013. "An 8% growth rate should not be a problem," according to some analysts. Steel prices are gradually rising, and the rate of change is expected to remain within a narrow range. It is challenging to provide positive guidance to the market, as the buying and selling atmosphere remains weak. The market continues to be influenced by the overall downturn in the domestic environment.
Weng Shuxia summarized that the market remains bleak and difficult to change. Prices have risen slightly, with a gain of 0.03% per ton. If 2013 achieves a fixed growth of 8% or higher, it could lay the foundation for steady growth over the next two to three years, and even up to four years. Although growth may slow down, the Chinese economy is still expected to maintain a high growth trajectory without encountering major crises for another 20 to 30 years.
"Currently, the spot market has maintained an 8% growth for two consecutive years, followed by a year where it dropped to 7%. After experiencing a year-on-year increase in the steel market, the current month has started to decline. Companies have seen their profit margins shrink sharply, and the market has witnessed a sudden shift in sentiment," Weng Shuxia noted.
She added that supply and demand have quickly reversed, and the market is now being closely watched. In the coming years, resource tightness may rise, and price fluctuations are likely to remain within a narrow band. Market guidance remains difficult to provide.
The buying and selling atmosphere remains weak, and the market continues to be affected by the domestic economic slowdown. Weng Shuxia emphasized that the fine-tuning of policies is ongoing, and while there has been a small gain of 0.03% per ton, there is potential for stability. The challenge lies in turning this potential into reality. A lot needs to be done—reforms and further adjustments must be focused on to ensure steady economic growth. She concluded that the potential exists, and it’s just a matter of how to unlock it.
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