Demand for automotive stainless steel material triggers new competition

In order to curb the export of high-energy-consuming resource products, from April 1st onwards, China’s customs authorities have begun to implement the 2007 “Price Risk Parameters for Customs Level 1 Exportable Duty Commodities,” setting out the prices for products such as ferroalloys and billets. Tax floor. Taiwanese companies with large billet imports said that although this measure is preventing tax evasion, it also creates a disguised effect on the prices of related products.

The commodities included in this series include ferronickel, ferromanganese, ferro-tungsten, and steel embryos. In the case of square embryos, the lowest export price of 20-manganese silicon square embryos is FOB 485 US dollars/ton, and Q235 embryo FOB 470 US dollars/ton. The above base price is based on the price offered by the China Minmetals Chamber of Commerce and the quoted price in the relevant industry website. This price is tentatively adjusted once a month.

People here say that the implementation of the above policy by the mainland aims to prevent underreporting. It is understood that due to the past, the export prices of steel and ferroalloys in mainland China are often lower than the market prices. As a result, officials believe that it is evident that exporters borrowing money from undervalued or reported prices. In order to prevent the hurricane from April 1, the adoption of the reserve price system.

According to industry experts, the implementation of the above policy does not mean that foreign buyers can not buy commodities below the listed prices. Taking a 20-Si-Si square block as an example, the buyer may still be able to purchase a FOB less than US$485/tonne square, but the price is insufficient and the seller still needs to pay a FOB of USD 485/tonne.

For example, the base price of 20-Mn silicon embryos is set at FOB 485 US dollars/ton, the actual price of steel plants is FOB 470 US$/ton, and the median spread is 15 US dollars/ton. The 15 US$/ton price spread section must be subject to separate taxation. , including 17% VAT and 10% export tax, in other words, the seller must pay another $ 4.05 / ton of tax, wool out of the sheep body, the extra cost of natural return to price response.

Taiwanese buyers said that although the above-mentioned reserve price policy did not directly impose 5% export taxes on steel embryos, it was still fierce. However, by swallowing gluttonous fish, there was still an implicit upward pressure on prices. Industry experts said that from this perspective, the mainland is very resolute in restraining the export of primary steel products, and its various methods of price increase in disguise are even more difficult to prevent.

The current general trend is that the automotive industry quality management system standards are shifting from national standards (QS-9000, VDA6.1, etc.) to international standards (ISO/TS16949). The three major automobile companies in the United States have already set specific deadlines for the transition, but not all national standards have a clear transition time.

Although there is no mandatory requirement for steel plants to obtain quality management system ISO/TS16949 standard certification, OEMs and auto spare parts manufacturing plants can see from the progress of forensic evidence in the steel industry, Pohang, Nippon Steel, JFE, Baosteel, and Angang. Companies such as WISCO, Shougang, etc. have obtained ISO/TS16949 certification. Masteel, Baosteel and other companies are embarking on this work.

To sum up, if you obtain the ISO/TS16949 international quality certification for the automotive industry quality management system, it will be beneficial to maintain existing users (because most cars in Europe and the United States will be), and it will be helpful for potential users to communicate and promote technology and quality. Market development is more conducive to the sale of stainless steel for automobiles and the shaping of brands.

At present, TISCO has started this work. In order to further deepen and refine the quality management system of TISCO, the Quality Department has determined the working ideas of the 2007 quality management system taking ISO/TS16949 as a breakthrough, and has formulated project assurance measures. We will strive to obtain certification as soon as possible, expand the sales of stainless steel for automotive use, be honest with our customers, and achieve branding.