Another obvious feature of the steel industry in 2014 is that the price of stainless steel wire has fallen sharply, and the efficiency of steel production enterprises has improved significantly.In 2014, the growth rate of China's steel production slowed down, but on the contrary, after substantial investment in the early stage, the iron ore production of the three major mines began to increase significantly, which caused a fundamental shift in the supply and demand relationship of iron ore, which triggered a sharp decline in iron ore prices.

At present, my country is actively promoting the strategy of going global in high-end manufacturing industries such as high-speed rail and nuclear power, and at the same time formulating the “Belt and Road” strategy for building the “Silk Road Economic Belt” and the “21st Century Maritime Silk Road”, and determining the “Chinese version of the Marshall Plan” to “go global” for China's excess production capacity.The ”Belt and Road" strategy will be a major policy dividend for our country in the next ten years. The initial large-scale infrastructure construction will be followed by the development and utilization of resources and energy, followed by a full range of trade and service exchanges, bringing multi-industry chains and multi-industry investment opportunities.Going global strategies such as the ”Belt and Road Initiative" will significantly increase the downstream demand of the steel industry, which will help alleviate the supply and demand contradictions in China's domestic steel market, and will have a positive impact on the stainless steel wire price industry.According to data monitoring, the Platts index of imported iron ore fell from its lowest level of US1134.5/ton at the beginning of the year to US775.5/ton, a decline of 43.9%.The sharp decline in iron ore prices has also significantly improved the efficiency of steel production enterprises that have been suffering from loss-making operations in the previous two years.Wang Guoqing said that due to the decline in iron ore prices, the costs of steel companies have decreased significantly and their profitability has improved.

Display diagram of stainless steel wire after production

It is reported that from January to September 2014, China's key steel companies achieved profits of 19.28 billion yuan, a year-on-year increase of 71.3%, which was largely due to the decline in the prices of raw materials such as iron ore. Brought about.Chen Kexin said that China's stainless steel wire price production will continue to increase in 2015, and due to the huge pressure on energy conservation and emission reduction, steel companies have a greater need for high-grade imported ore. It is expected that China will import 1 billion tons of iron ore in 2015.However, even so, the price of iron ore in 2015 will continue this price weakness, the main reason is that the contradiction between supply and demand of iron ore will further increase.The three major mines will continue to expand their production capacity and their production costs will fall further. As the largest consumer of iron ore, China's stainless steel wire prices may continue to face low-speed demand growth in 2015.Wang Guoqing analyzed that although the country has implemented a series of stable growth measures to boost steel demand, the downward pressure on the economy continues to increase. The recovery of manufacturing, real estate, etc. is slow, and the room for steel demand growth is still limited.

Iron ore prices remain low, and although the profitability of steel companies has improved, the price of stainless steel wire will also be difficult to rise due to the reduction of cost support. For steel circulation companies, the situation faced in 2015 may be even more severe, because the problem of surplus in the steel industry always exists.However, Wang Xiaoqi said that to resolve the surplus problem in the steel industry, it is necessary to rely more on the market mechanism, rather than relying too much on stimulus policies, and the price of stainless steel wire will ultimately depend on its own development.