Our Country Faced Silicon-steel Overcapacity Crisis

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Shougang Group, said yesterday that in 2011, Shougang Group plans to produce 120 million tons silicon steel, silicon steel production in 2010 to about 3 times. It is noteworthy that, with the major steel companies have been the project of producing silicon steel, the industry that has a "steel products in crafts," the reputation of the silicon steel,Gadolinium price, will face the embarrassing situation of supply exceeding demand, especially in low-grade projects, facing serious overcapacity, silicon steel project profitability will significantly decline.

Statistics show that silicon is the silicon content of about 3%, other ingredients are mainly silicon iron alloy. According to experts, silicon is the electrical, electronic and military industries indispensable soft magnetic alloy is also the largest output of the metal functional materials, mainly used for a variety of motors, generators and transformers of the core.

A network from China United Steel data, December 2010, China's domestic production of silicon steel was 51.4 million tons,Gadolinium powder, an increase of 9.48%, growth of 1.98%. It should be noted that this is China's domestic production of silicon steel production exceeded 50 million tons for three consecutive months. The year 2010, the domestic production of 5.71 million tons silicon steel, an increase of 24%.

The data also show that Wuhan Steel shares last December silicon steel output reached 151,000 tons, an increase of 6.34%, a decline of 4.43%; Angang Steel Company Limited (000898) silicon steel production last December was 9.1 million tons, up 18.18%, growth of 5.81 %; Magang silicon steel production in December last year, 3.7 million tons, an increase of 5.71%, growth of 2.78%.

China United Steel Net analyst Song Liyuan told the media that on the basis of a new steel production capacity of provincial and municipal statistics, 2011 silicon steel production capacity in China could reach 1,000 million tons, the actual yield will be up to 700 million tons. Electrical and electronics industry by lower demand, the low-grade silicon steel has a surplus; and 2010, the price of domestic non-oriented silicon steel is about 8500 yuan per ton, very little room for further upside.

Meanwhile,rare earth exporter, Zhejiang Normal flight also believe that securities analysts, Shougang, Valin Iron & Steel (000932) and TISCO are all those who entered the field of silicon, with the further release of their production capacity, market share for the current largest silicon Wuhan Iron and Steel for the biggest shock. Wuhan Iron and Steel's annual capacity is currently about 160 million tons silicon steel for Wuhan Iron and Steel contributed more than 50% of the profits. Once the excess of domestic silicon production capacity is currently about 40% of the gross profit margin there will be decreased significantly. Source: http://www.mhcrem.com
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Our Country Faced Silicon-steel Overcapacity Crisis

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This article was published on 2011/02/17