The rise in silicon-manganese prices will also affect the rise in hot roll cut to length line
Since the beginning of this year, driven by the expectation of steady growth, most varieties of the black industry chain have increased greatly, steel up by about 20%, iron ore up by about 40%, coal coke up by more than 50%, while the current price of silicon-manganese is still in a state of low oscillation, spot price from the beginning of 7800 yuan/ton to about 8400 yuan/ton, an increase of only 8%. The reason is that the supply of silicon manganese itself is loose, and high inventory suppresses the price of silicon manganese. Looking forward to the future market, we believe that silicon-manganese demand elasticity is greater than supply, high inventory is expected to disappear, silicon-manganese price may usher in a catch-up market.
On the supply side
As ferroalloy is a typical energy-intensive industry, it was greatly impacted by the double carbon policy last year. However, with the correction of the campaign carbon reduction, the output of silicon-manganese has been continuously recovering since Last October. As of last week, the average daily output of 121 independent silicon-manganese enterprises has recovered from the minimum 17,000 tons to about 29,100 tons. Utilisation rates rose from 24% to 66%.
In terms of profit
W ith the increase of cost, the profit of silicon-manganese factory has narrowed considerably, while the southern factories such as Guangxi have higher costs and are in deficit. If electricity prices continue to remain high, it will affect the recovery of silicon-manganese supply in peak season, thus supporting silicon-manganese prices.
In terms of inventory
D ue to the difference in production rhythm between the two ends of supply and demand of silicon-manganese, the supply resumed production earlier, resulting in the current high inventory of the industry chain. The inventory of 63 independent silicon-manganese alloy factories is 134,000 tons, and the warehouse receipt inventory of delivery warehouse is about 140,000 tons, which is still high compared with last year. But with the late steel mills continue to resume production, silicon-manganese high inventory is expected to go.
In terms of basis
T he price of 6517 silicon-manganese in northwest producing area is 8400-8500 yuan/ton. After the rise of futures last week, it is in a state of small premium. Warehouse order inventory liquidity is weak.
In general, the current silicon-manganese market is in a state of booming supply and demand, high cost and inventory, and low profit. The pattern of oscillation will continue in the short term. In the later period, with the effect of stable growth, the elasticity of the demand side will be greater, and the high inventory of silicon-manganese is expected to disappear, and the price of silicon-manganese will face a stage rise.
Steel processing industry - Current status of the hot roll cut to length line
Growth in the construction, automotive and consumer hot roll cut to length line has played a big role in providing the needed boost to the global steel processing industry. The global steel processing industry is projected to grow at a CAGR of 6.86% between 2020 and 2026. Alloy steel is the fastest-growing segment of the global steel processing market and is suitable for all applications. If you have any questions about the hot roll cut to length line or want to seek our help. Send an email to firstname.lastname@example.org ，please feel free to contact us.
Rising oil prices drive up the cost of steel limited will also have an impact on product name prices
Oil price rise undoubtedly drives freight costs to move up. According to the general law of steel freight, according to the approved load of 35 tons of heavy truck calculation, 100 kilometres of fuel consumption of about 40 litres, a diesel price increase of 1000 yuan/ton is equivalent to the diesel price increase of 0.83 yuan/litre or so, thus calculated, since 2022 diesel price increase will increase the transportation cost of 0.664 yuan/ton/km, If the average transportation distance is 400 kilometres, the increased transportation cost of raw materials and steel is about 7.57 yuan/ton. In addition, the ore relies on long seaborne shipping routes, and rising oil prices are undoubtedly a factor in pushing up the cost of purchasing iron ore. But all of the above for the overall cost of steel moving up is still not big, and from the current weak transportation market, transportation costs transferred to the final sales of steel strength needs time to observe.
Metal and Steel Processing industry – the hot roll cut to length line market demand
Market demand for steel processing is expected to grow by us $642.43 billion by 2020, with a CAGR of 2.16% from 2015 to 2020. Growth in the global construction, consumer electronics and automotive industries has played a huge role in providing the necessary momentum for the global steel processing industry after the economic slowdown of 2007-2009. In addition, the reduction of alternatives to steel has made steel an indispensable part of customers lives. The recovery of the global hot roll cut to length line economy will also boost demand in the steel processing market.
The Asia-pacific region is expected to become the fastest-growing region in the steel processing market from 2015 to 2020. Major players in steel processing prefer agreements, contracts, joint venture and partnership strategies as well as expansion and investment to gain a larger share of the market. Leading hot roll cut to length line providers of steel processed products and services are focusing on emerging countries that are expected to show potential for industrial development in the near future.
Metal and Steel Processing Industry - Future planning of the hot roll cut to length line
The steel processing market is a highly fragmented one due to the huge demand for environmentally friendly products and changing technologies. Large companies rely on regional and local distributors to increase their market share and geographic distribution. The company is pursuing inorganic growth strategies such as acquisitions to respond to the growing demand for steel processing in key emerging markets. These strategies have helped the company build a larger customer and partner base in key hot roll cut to length line markets.
The application needs of steel processing are constantly changing and manufacturers must continue to invest in RESEARCH and development and come up with innovative solutions.
Steel deep processing is the only way for the development of the hot roll cut to length line steel industry. Chinas steel production is in the stage of oversupply, structural contradictions are: advanced production capacity and backward production capacity coexist; The shortage of high-end products and the surplus of low-end products coexist; Industrial concentration is poor.
Leading manufacturer of metallic processing machines, the hot roll cut to length line supplier
Foshan Te Xiang Machinery Co., Ltd is a China leading manufacturer of metallic processing machines, including slitting line, cut to length line, stainless steel polishing line, ERW tube mill line, roll forming machines, embossing line and etc.
Thanks to the experience acquired in many years of business in the field of sheet metal processing, and the continuous collaboration with downstream manufacturers that demand reliability and the maximum productivity, we have developed various types of cut to length line machines for special applications, with solutions at the forefront of technology, and able to reduce the production costs of the end product. TX CTL line can be incorporated with air cushioned, bomb-door type stackers, computer controlled high-precision 4 HI and 6 HI levellers, edge trimmer and etc.
According to the dimensions, thickness of the material, and production capacity, TX cut-to-length cutting lines can be divided into various types:
1)start-stop shear CTL line;
2)flying shear CTL line;
3)rotary shears CTL line ;
4)trapezoidal shear CTL line;
5)heavy gauge CTL line;
6)flat bar cut to length line
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