1.Impact of the Epidemic on Steel Trade
Considering that the overseas control measures for the epidemic are not as timely and demanding as our country, the impact of the fermentation of the overseas epidemic on China ’s direct and indirect exports of steel may be less than that of China ’s previous decline in demand, but the process of decline is in time It may be more extended. If we estimate according to the impact time of 2-3 quarters, about 20% of the production decline, then the continuous fermentation of the overseas epidemic will affect the comprehensive export of China ’s steel (including direct and indirect exports) for the whole year is about 10% to 15 %. Combined with our previously calculated total steel export accounted for about 13.9% of the total domestic steel production, it is converted to an adverse impact of about 1.3-2.1% on China's total steel demand.
Judging from the current stage of futures, the current market has had a certain sufficient transaction for the export shocks we have analyzed above, and the far-month hot-volume futures prices have been sold short to the breakdown of the cost line. Follow-up needs to continue to pay attention to whether the domestic policy side has further incentives for infrastructure investment, and whether the domestic real estate policy side has been properly relaxed to consider whether there is room for rebound in steel prices in the vicinity of cost support. Of course, in the medium term, we still believe that the continued fermentation of the overseas epidemic will continue to have a negative impact on exports of plates and other products. If there is a major rebound, we can continue to sell hot coils and hot coil-thread spreads.
Therefore, under the impact of continued weak exports, it has been difficult for steel (especially sheet) prices to achieve a significant rebound. Once the steel price rebounds rapidly, it is likely to face the impact of periodic overseas low-cost imported steel.
2.What is the difference between stainless steel and stainless iron?
1.. Different bright colors
A.Stainless steel: the bright color of the surface is white and bright, and it is white and shiny.
B.. Stainless iron: the surface is only bright, without the white brightness of stainless steel.
2.. the characteristics are different
A.Stainless steel: resistant to air, steam, water and other weakly corrosive media or non-rust-resistant steel.
B.Stainless iron: It contains chromium but not nickel, and has certain anti-corrosion ability.
3.. Different production methods
A. Stainless steel: Stainless steel is composed of various chemical compositions with different ratios.
B. Stainless iron version: The so-called "stainless iron" refers to the processing of recycled scrap iron, lead, steel and other rights by secondary reprocessing and de-magnetization treatment. The traditional detection method is to use magnetite.
