Chinese Stainless Steel Products Market Will Have Large Potential in “12th Five-year Plan”


The government confirmed economic development targets of this year and next five years in the 4th Session of the 11th National People’s Congress, and the 4th Session of CPPCC. The stainless steel industry faces challenges as well as opportunities.

The government confirmed economic development targets of this year and next five years in the 4th Session of the 11th National People’s Congress, and the 4th Session of CPPCC. The stainless steel industry faces challenges as well as opportunities. The market of stainless steel products will become one of the highlights of stainless steel markets due to large potential. Meanwhile, the people in the industry will raise new higher requirements for domestic stainless steel industry to meet the development of stainless steel products industry in the period of “12th Five-year Plan”.
Wen Jiabao  pointed out in the Government Work Report of two Conferences “We shall improve the economy to a new level. In the next five years, China’s economic growth target is an average annual growth of  7% based on obvious quality improvement and profit increase. According to the price of 2010, the GDP of 2015 will exceed RMB 55 trillion. “12th Five-year Plan” is important for Chinese economic and social development as well as the transformation of Chinese economic development from middle stage to the last stage of industrialization. Due to the influence of external environment, system change, industrialization, informationization and urbanization, etc. Chinese economic development will show a lot of new features and trends different from the economic features of “11th Five-year Plan” Period.
The stainless steel metal product is the important part of metal products industry, which includes manufacturing of structural metal products, metal tools, containers, metal packing containers, stainless steel products, and similar household metal products, etc. With social progress and technological development, the metal products are widely used in industry, agriculture, and all areas of people’s lives and have created more and more value for the society.
The stainless steel products are widely used in various kinds of industries. Especially, the daily stainless steel utensils (such as stainless steel kitchen utensils) are popularly applied. The stainless steel tableware products include table knives, forks, spoons (used for Chinese food and western-style food), and stainless steel utensils (pans and basins), etc. The kitchen utensil products include cook tables, washing tables, cabinets, exhaust hoods, and buffet equipment, etc. The household products include cabinets, sinks, gas utensils, range hoods, and stainless steel cups, etc. The daily stainless steel hardware products include nail clippers, shavers, knives, and scissors, etc. The stainless steel architectural hardware products include silk screens, hinges, sliding tracks, and trimmings, etc.
Stainless steel is the major raw materials for stainless steel products. China focuses on improving people’s livelihood in the period of “12th Five-year Plan”. “People’s Livelihood Idea” will become an important concept of guiding the development of light industries such as metal products and household electrical appliances. Undoubtedly, the demand for stainless steel will be significantly increased in metal products industry.
According to the statistics of people in the industry, there are more than 400 stainless steel utensil manufacturers in China. Most of the manufacturers are small and medium-sized private enterprises, which consume about 500,000 tons of stainless steel plates every year, and achieve sales volume of RMB 15 billion. More than 50% of the products are exported. Before the financial crisis, the gross export in Xinhui, Guangdong has exceeded USD 1 billion. A medium-sized tableware factory will consume 2000-3000 tons of stainless steel materials every month, most of which are 304 and 430. A medium-sized nail clipper plant annually consumes 300 tons of stainless steel materials, most of which are 420. The annual consumption of kitchen utensil, cook ware, and tableware achieves 100,000 tons, most of which are sus304 and 430 with the specification of less than 3mm.
The other household kitchen utensils including range hoods are made from ferrite stainless steel. The annual consumption achieves 70,000-100,000 tons. The stainless steel fastening pieces consume 58,000 tons of rod and wire rod. The annual consumption of stainless steel wires such as welding wire, wire cable, silk screen, microfilament, and steel wire for fasteners reach 70,000 tons. The annual consumption of valve steel reaches 37,000 tons. The annual consumption of table ware and special purpose reaches 25,000 tons. The annual consumption of the stainless steel materials used for construction, decoration, and the processing of mirror panels, diamond plates, and stainless steel welded pipes reach 300,000-350,000 tons, most of which are sus304 with the specification of less than 2mm.
The construction of indemnificatory housing will be accelerated in the period of “the 12th Five-year Plan”. Premier Wen Jiabao pointed out in the Government Work Report of two Conferences: The government should resolutely improve the regulation of real estate markets, and expand the scale of indemnificatory housing construction. In this year, the indemnificatory housing will be constructed. 10 million houses in the shanty towns will be reconstructed. 1.5 million dilapidated houses in rural areas will be reconstructed. Wen Jiabao said when he made on-line communication with netizens on February 27: Chinese government plans to construct 36 million indemnificatory housing in the next five years. The insiders believe that the indemnificatory housing markets will become the driving force of promoting the updating of household electrical appliances and stimulating domestic demand. Meanwhile, the stainless steel products industry will develop rapidly. These metal products manufacturers and home appliance enterprises are making surveys about the demand characteristics of the consumer groups of the indemnificatory housing, and developing the suitable products for them. During the period of “The 12th Five-year Plan”, Chinese hardware products industry will make transformations in five aspects: 1.Transform from the extensive production to intensive production. 2. Transform from labor-intensive to technology-intensive. 3. Transform from volume expansion to quality improvement. 4. Transform from low price and low cost to high added value and high profit margin. 5. Make transformation from OEM export to independent brands, and realize the transformation from “a Large Manufacturing Country” to “a Powerful Manufacturing Country”.