The industry has great potential for improvement: Compared with developed countries, the current situation of the domestic special steel industry is low industry concentration, low degree of alloying, and low proportion of high value-added products, but this also means that the domestic steel industry There is huge potential in the process of going from weakness to strength in the future.
Looking at special steel based on history: Throughout the development history of the world's steel industry, the most common point in the development of steel in developed countries is: after steel production reaches a certain scale, the proportion of high-quality and special steel gradually increases, reaching about 20 proportion. At present, the proportion of domestic high-quality special steel is only 9. Although the growth rate of total domestic crude steel production will gradually slow down in the future, the increase in the proportion of special steel will be a trend.
There is huge room for profit improvement. The profitability level of domestic special steel is significantly lower than that of foreign countries. The gross profit margin of domestic special steel companies is about 10%, the gross profit margin of international special steel companies is about 20%, and the gross profit margin of specialized special steel companies can reach more than 35%. With the development and technological advancement of the domestic special steel industry, there is great room for profit improvement in the future.
Special steel holds up the backbone of manufacturing in China. Special steel's main consumer markets, automobiles, machinery and other industries, are inseparable from China's nickel resource industry. China's manufacturing industry has broad prospects for development in the future. The localization of Made in China and the internationalization of Made in China will significantly increase the demand for the domestic special steel industry. The special steel industry will go global with Made in China.
Risk factors: The growth rate of the automobile, machinery, and military industries will directly affect the demand for the special steel industry. Large fluctuations in the prices of scrap steel, ferroalloys, and raw materials such as nickel, vanadium, and aluminum will affect industry profitability.