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Your Position:Home>News>Industry News>The Fourth Quarter Of Stainless Steel Enterprises: Profit Is Expected To Be Further Squeezed

The Fourth Quarter Of Stainless Steel Enterprises: Profit Is Expected To Be Further Squeezed

Time:11 November 2016 Click:186

Coal prices continue to rise while domestic stainless steel companies meet great challenges. A stainless steel enterprise that used to make profits now falls behind because of rising coal prices, and profits decline or even disappear. Coal prices rising too fast will be a new challenge in the face of stainless steel industry in the fourth quarter. For stainless steel enterprises in the fourth quarter of this years, their profits are expected to be further squeezed. Capital of coal supply and demand for short-term still tighten supply, and this price fluctuation is expected to last to at least the first quarter of the next year. Therefore, the top priority is to set up  linkage mechanism of relevant industry such as coal, iron and steel, electric power.


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It is reported that with the advancement from coal to capacity, China’s coal production continues to decline, and in some parts of coal short supply, prices rise. Coal prices rising is causing related industry chain reaction of stainless steel, electric power and so on. Coal price rising is a good thing for coal enterprises in the short term, but for the stainless steel industry, it is not good news.


Coal and steel price change is a normal phenomenon. Facing the current condition, in order to guarantee their continuous production, the enterprises should increase production of reserves, coal, and stainless steel seamless tube as the current rise in steel prices is a normal phenomenon.


Facing the rising coal price, it’s necessary for stainless steel enterprises to establish the linkage mechanism, promote the collaborative development of the industrial chain, build the innovation of the industrial chain, and cooperate to achieve the win-win results together with enterprises of related industries. Synergy is the most important solution now. Capital merger can solve the problem of concentration and solve the problem together.


In the face of rapidly rising costs, stainless steel factory price is always high. Nowadays, stainless steel factory prices bring different profits. Facing the situation, agents for mobilization seem to be reasonable.


Facing some goods phenomena, there is no need to worry too much. In terms of supply control of raw material costs of the stainless steel factory, the current stainless steel market is still strong, and the differences are at an early stage and likely to go through rational adjustment. Stainless steel is expected to have slowing increase and high price over the short term.