2021-04-10
Ansteel’s May 2021 Product Price Policy Adjustment Information
Zuozuo ✔: Ansteel’s Product Price Policy Adjustment Information for May 2021 Based on the “April 2021 Product Price Policy,” Ansteel has adjusted its product pricing policy for May 2021 as follows: 1. Hot-rolled steel: Prices increased by RMB 500 per ton. 2. Pickled steel: Prices increased by RMB 500 per ton. 3. Cold-rolled steel: Prices increased by RMB 400 per ton. 4. Hard‑rolled steel: Prices increased by RMB 400 per ton. 5. Galvanized steel: Prices increased by RMB 200 per ton. 6. Non-oriented silicon steel: Low‑grade flat sheets and high‑grade grades both saw a price increase of RMB 300 per ton. 7. Oriented silicon steel: Prices increased by RMB 100 per ton. 8. Color-coated steel: Prices increased by RMB 100 per ton. 9. Medium and thick plates: Prices increased by RMB 750 per ton. 10. Wire rod: Prices increased by RMB 200 per ton. 11. Rebar: Prices increased by RMB 400 per ton. Ansteel Corporation Marketing Center April 10, 2021 Zuozuo ✔: [Link] Baosteel surges by 400! Steel prices rise nearly 200 this week! There’s no doubt—the market will continue to climb!
2021-04-10
Beware: Following the wave of price hikes comes a wave of bankruptcies…
The surge in raw material prices is only the beginning. Many small and medium-sized enterprises will face six major crises: flour becoming more expensive than bread, environmental regulations leading to capacity cuts, an increasingly complex international trade environment, aggressive expansion by stronger competitors, broken capital chains, and sluggish product sales—ultimately triggering a wave of business closures among SMEs. A Wave of Bankruptcies: Already Evident Across Multiple Industries 01 Since the start of the year, the dramatic price hikes have yet to subside. From rising raw material costs to escalating prices for component parts, the ripple effects are now driving companies into bankruptcy. The harsh consequences are already being felt. Recently, several more businesses have run into trouble, with factories and equipment going up for online auction. Among them are two-wheeler manufacturers Ailite and Maiteer, battery producer Bolixun, three-wheeler maker Jinhuangli, and even a four-wheeler company quietly winding down operations—a situation that leaves many deeply saddened. According to multiple executives in the glass industry, over the past year, compounded by the pandemic’s impact and frequent, extreme price fluctuations, some peers simply could not withstand the pressure and have gone out of business one after another. While this includes normal market-driven survival of the fittest, the number of bankruptcies has clearly exceeded previous years. What’s unusual is that many of these failing firms had been operating for over a decade—an abnormal trend. Whether it’s the home appliance sector or aluminum and glass processing industries, all are merely microcosms of the broader price hike phenomenon. According to a survey conducted by China Economic Weekly reporters in Guangdong, manufacturing firms across the province are currently under immense pressure due to continuously rising costs coupled with a severe shortage of orders. These companies fear that if the situation persists, it could lead to cutthroat competition and losses, accelerating the closure of numerous small and medium-sized manufacturers. 02 Upstream raw material suppliers often believe that persistently raising prices will allow them to pass those increases downstream, forcing consumers to foot the bill. In reality, however, rapid price hikes combined with shrinking demand have created an exceptionally challenging scenario. Take electric vehicles as an example: when raw material costs rose by 20%, vehicle manufacturers resisted pressure by cutting their profit margins by 5%, ultimately increasing retail prices by only 15%. Even so, dealers were reluctant to raise prices directly, as competitors continued offering promotions; they could barely afford to increase prices slightly—or even hold them steady altogether. With profits swallowed by rising costs, businesses found themselves struggling to stay afloat. Similarly, in the air-conditioning industry, soaring prices of key materials such as silicon steel, copper, and aluminum have driven costs sky-high. Copper prices have surged from 38,000 yuan per ton to 68,000 yuan per ton, silicon steel has risen from 4,000 yuan per ton to over 8,000 yuan per ton, and aluminum prices have climbed from last year’s low of 11,000 yuan per ton to a peak of 18,000 yuan per ton. By year-end, production costs for air conditioners had already increased by roughly 10%, while industry profit margins typically hover around 10%—and in some cases fall below that threshold. Yet retailers find it difficult to raise prices, leaving smaller manufacturers on the brink of collapse. In the printing industry, white cardboard prices have skyrocketed from a low of 5,300 yuan per ton to a record high of 10,200 yuan per ton, pushing many printing companies to the edge of financial viability. At a price-increase survey meeting organized by the Hunan Provincial Printing Association on March 17, participating entrepreneurs warned that a 2,000-yuan-per-ton increase in paper prices would add 200 million yuan to paper-related costs, plunging textbook and educational supplement publishers into substantial losses. Meanwhile, in the glass manufacturing sector, Wu Bing, general manager of Jiming Glass Group, shared a chart showing glass prices steadily climbing since April 2020, peaking at over 2,400 yuan per ton. Over the past year alone, glass prices have increased more than 150 times. Such frenzied price hikes have severely disrupted normal ordering patterns, leaving many companies unable to secure complete orders. Aluminum profile processing firms are also facing tough times. As previously noted, aluminum prices have soared from last year’s low of 11,000 yuan per ton to a peak of 18,000 yuan per ton. “Many downstream customers have stopped placing orders, opting instead to wait and see,” laments the head of a leading aluminum profile manufacturer. “Our order volume has dropped by nearly 30%. Although we have production capacity, insufficient orders have forced some lines to shut down—this is the current reality faced by most aluminum profile producers.” He adds, “While there is clear market demand, abnormal price hikes have effectively paralyzed the entire industry.” SMEs: Five Major Crises Mounting—A Wave of Bankruptcies Looms 03 As the butterfly effect of rapidly rising raw material prices becomes increasingly apparent, small and medium-sized enterprises will soon confront mounting financial difficulties and stagnant sales. The reasons are as follows: 1. With raw material prices continually escalating, companies must spend more to procure the same inputs. Many SMEs have long relied on bank loans to stay afloat, but with limited working capital and poor credit histories, securing further financing has become exceedingly difficult. Financial strain thus emerges as a critical factor behind the impending wave of business closures. 2. Small and medium-sized enterprises will also face sluggish sales, as most rely on price competitiveness to capture market share. However, following the recent price hikes, SMEs have raised their prices significantly—cumulatively by as much as 45%—while larger corporations and foreign brands have kept their markups around 10%. Consequently, the gap between low-end and mid-to-high-end pricing has narrowed, prompting consumers to favor pricier, higher-quality products rather than settling for budget options. Coupled with factors such as anti-dumping measures and export restrictions, the likelihood of stalled sales for SMEs is extremely high. Taken together, these five crises pose a grave threat to the survival of China’s small and medium-sized enterprises, making a wave of business closures highly probable in the near future. It is imperative that SME management recognize their predicament and adopt appropriate, tailored strategies to navigate these challenges successfully. Disclaimer: The above content is reprinted from WeLINK Renewable Resources and does not represent the views of this platform. For inquiries, please contact the National Energy Information Platform at 010-65367702 or email hz@people-energy.com.cn. Address: No. 2 Jintai West Road, Chaoyang District, Beijing, People’s Daily Press.
2021-04-02
Why do so many people like Tangshan channel steel?
In the 21st century, with rapid advances in science and technology, high-rise buildings are ubiquitous in major cities. As populations grow and land becomes increasingly scarce, structures are being built ever taller, placing ever-higher demands on construction materials. Tangshan channel steel, a long steel product with an I‑shaped cross‑section, is one such innovative material that has emerged in this new era. Today, let me introduce it to you and highlight its key advantages. As mentioned earlier, it is a type of long steel section, specifically classified as carbon structural steel used in construction and machinery. These products belong to the category of special steels with complex cross‑sections; as the name suggests, their profile is channel‑shaped. So, where is Tangshan channel steel primarily applied? It is commonly used in building structures and curtain wall systems, as well as in machinery and vehicle manufacturing. During use, it must exhibit excellent weldability, rivetability, and overall superior mechanical properties. Where is channel steel produced? In industrial manufacturing, the raw billets typically consist of carbon structural steels with a carbon content not exceeding 0.25% or cost‑effective low‑alloy steel billets. The finished channel steel is obtained through hot forming on production lines, followed by normalizing or hot rolling. Today, standard specifications are generally expressed in millimeters as height (h) × leg width (b) × web thickness (d), for example, 100×48×5.3. What does this mean? It indicates a channel steel with a height of 100 mm, a leg width of 48 mm, and a web thickness of 5.3 mm—commonly referred to as “10# channel steel.” If two channel steels share the same height, they can be distinguished by adding letters like “a,” “b,” or “c” after the model number, depending on variations in leg width or web thickness. Among products manufactured under the same height, lightweight channel steels generally feature narrower legs and thinner webs, resulting in significantly reduced weight. Imported products typically bear clear markings indicating their actual dimensions and applicable standards. For both import/export and custom orders of Tangshan channel steel, the specific grade is determined first, with strict adherence to the required specifications during use. It’s important to note that, aside from the designation number, there is no fixed set of chemical compositions or performance grades associated with this product. That concludes our brief overview of Tangshan channel steel. We hope this information proves helpful.
2021-04-02
About Channel Steel—Facts You May Not Know
Channel steel is a long steel product with a concave‑shaped cross‑section; it belongs to the category of structural carbon steels used in construction and machinery. As a complex‑section steel, its cross‑section features a groove‑like profile. The raw material for producing channel steel is carbon structural steel or low‑alloy steel billets containing no more than 0.25% carbon. Channel steel is classified into ordinary channel steel and lightweight channel steel. Hot‑rolled ordinary channel steel is available in sizes from No. 5 to No. 40. Based on shape, channel steel can be further divided into four types: cold‑formed equal‑leg channel steel, cold‑formed unequal‑leg channel steel, cold‑formed internally rolled‑edge channel steel, and cold‑formed externally rolled‑edge channel steel. Applications: Channel steel is primarily used in building structures, curtain wall systems, mechanical equipment, vehicle manufacturing, mounting panels and cabinets, and other industrial applications. It is often combined with I‑beams, and during use, it must exhibit good weldability, rivetability, and overall mechanical performance. According to structural mechanics theory, the flanges of channel steel should bear the load—meaning the section should be positioned vertically rather than horizontally. Differences in application between I‑beams and channel steel: Both are structural profiles commonly used in pipe racks, differing only in cross‑sectional shape, which leads to slightly different selection criteria. Due to differences in moment of inertia and the fact that an I‑beam with comparable cross‑sectional area offers better out‑of‑plane stability than channel steel, H‑beams or I‑beams are typically preferred for compression members or when out‑of‑plane deformation needs to be considered. However, I‑beams generally require more complex fabrication and connection details compared to channel steel. Therefore, when structural loading is relatively simple or member stresses are modest, channel steel may be suitable; the final choice should be determined by the designer through stress analysis comparing alternative solutions. In practice, these two sections are largely interchangeable across most applications. When subjected to pure bending moments and relatively balanced axial loads on both sides, I‑beams are preferable due to their superior stability. Conversely, when edge reinforcement is required and aesthetic surface appearance is important, channel steel becomes the more appropriate choice. Surface quality requirements: Standard specifications detail allowable deviations in surface finish and geometric dimensions for channel steel. Generally, the surface must be free of defects detrimental to service, and significant warping is not permitted. Specific limits are set for wave‑like bends (sickle bends) as well as numerical values and tolerances for various parameters related to the cross‑sectional geometry of each size. Major geometric irregularities include corner collapse, leg widening, and leg convergence.
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