1. Raw material price Nickel: Nickel is the core raw material for the production of stainless steel, and its price fluctuations directly affect the price of stainless steel. Higher nickel prices, such as due to supply shortages or increased demand, will push up the cost of stainless steel. Chromium and iron ore: Chromium and iron ore are other important raw materials, and fluctuations in the price of these commodities will also affect the production cost of stainless steel. Scrap: As a renewable resource, scrap accounts for a certain proportion in stainless steel production, and the rise in scrap prices will also push up the price of stainless steel. 2. Supply and demand relationship Supply side: Stainless steel producers’ capacity changes, maintenance shutdowns, and line adjustments (such as production cuts or expansions) will affect supply. Demand side: Stainless steel is widely used in construction, automobiles, home appliances, petrochemical and other industries. Fluctuations in demand in these industries can affect prices. Economic growth: When the economy is growing strongly, the demand for stainless steel increases and the price rises. Seasonal demand: for example, the demand for stainless steel in the construction industry is higher in the construction season (spring and autumn). 3....

304 stainless steel and 304S stainless steel mainly have subtle differences in chemical composition, processing performance and application scenarios.

1. Chemical composition The main composition of 304 stainless steel is chromium (18%-20%), nickel (8%-10.5%), and trace elements include carbon content ≤0.08%, manganese ≤2%, silicon ≤1%, phosphorus ≤0.045%, sulfur ≤0.03%. 316 stainless steel is mainly composed of chromium (16%-18%), nickel (10%-14%), molybdenum (2%-3%), trace elements including carbon content ≤0.08%, manganese ≤2%, silicon ≤1%, phosphorus ≤0.045%, sulfur ≤0.03%. Compared with 304,316 stainless steel, it contains 2%-3% molybdenum, which gives it better corrosion resistance. 2. Corrosion resistance 304 stainless steel has good corrosion resistance in the ordinary environment, but the pitting resistance in the chloride environment (such as seawater, salt spray) is relatively weak, and corrosion is easy to occur. 316 stainless steel because of the molybdenum element, the resistance to chloride corrosion (pitting, crevice corrosion) is stronger, more suitable for highly corrosive environments, such as Marine and chemical processing equipment. 3. Mechanical properties At room temperature, the strength and hardness of 304 and 316 are not different, and they have excellent toughness and ductility. In high temperature environment, the antioxidant performance of 316 is slightly higher than that of 304. 4. Cost Because 316 contains molybdenum and a higher nickel content, it usually costs more than 304. 5. Application field 304...

The impact of Trump’s interest rate hike on Chinese steel 1. Dollar appreciation and export pressure The appreciation of the US dollar has led to the relative depreciation of the RMB, which may improve the price competitiveness of China’s steel exports in the short term, making Chinese steel more attractive in the international market. However, the appreciation of the US dollar may have a contractionary effect on the global economy, leading to weaker demand in downstream industries such as infrastructure and manufacturing, and indirectly weakening demand for steel. 2. Changes in import costs The raw materials needed for steel production, such as iron ore and coal, are mainly priced in US dollars. A stronger dollar would push up the cost of importing those raw materials, increasing the cost of steel production in China and weakening profit margins. For steel mills that rely on imported raw materials, currency fluctuations from higher interest rates could increase operational risks. 3. Capital flows and domestic investment environment Higher interest rates attract capital to the US market, leading to outflows from the rest of the world. The impact on China’s steel market includes: Slowdown in infrastructure investment: Domestic capital outflows may reduce funding for infrastructure...

Fluctuations in the US dollar (USD) exchange rate have a significant impact on the steel market, mainly reflected in the following aspects: 1. Import and export trade costs Steel is an important commodity in global trade, and exchange rate fluctuations will directly affect the import and export cost of steel: Appreciation of the dollar: When the US dollar exchange rate rises, the price of steel in US dollars becomes relatively high, and for importers in other currency countries, the cost of steel increases, which may lead to a decline in demand and downward pressure on international steel prices. Depreciation of the dollar: When the US dollar depreciates, the price of steel in US dollars is relatively low, and the import cost of other countries is reduced, which helps to stimulate demand and promote the rise of international steel prices. 2. Impact of raw material cost Steel production relies on commodities such as iron ore and coal, which are also mostly priced in US dollars: Appreciation of the US dollar: Rising raw material costs and increased steel production costs may reduce steel production, thus affecting the market supply and demand balance. The depreciation of the US dollar: the cost of raw...

1. Raising tariffs: In 2018, the Trump administration imposed steep tariffs on imported steel and aluminum on the grounds of “national security” under Section 232 of the Trade Act of 1974. Specifically, the United States imposes a 25 percent tariff on imported steel and a 10 percent tariff on aluminum. While the tariffs apply to a number of countries, they are particularly targeted at China. This has led to a significant increase in the cost of Chinese steel entering the US market, directly affecting China’s steel exports to the US. 2. Compression of export space: With the increase of tariffs, the price advantage of Chinese steel has been weakened, and the total amount of steel exported to the United States has gradually decreased. Domestic demand for Chinese steel has also fallen in the United States, prompting Chinese companies to adjust the markets and methods of exporting their products and increase exports to other markets, such as Southeast Asia, the Middle East and Latin America. 3. Increased competition in the global steel market: In order to absorb excess capacity, Chinese steel companies have to find a way out in other markets, leading to increased competition in the global market. Especially in...