Stainless steel forgings are important components in the manufacturing industry, widely used in fields such as machinery and aviation. However, the global stainless steel forging market is facing the dilemma of excess capacity and supply-demand imbalance. This article will analyze it from the aspects of national policies and practical cases.
I. National Policies:
Governments of various countries have strict regulatory policies on the steel industry. Tax policies, foreign trade policies, capacity policies, etc. may all have an impact on the stainless steel forging market. For example, in China, the government has formulated the “Steel Industry Restructuring and Revitalization Plan” to control over capacity and strengthen environmental regulation. However, despite the limitations of policies, many companies still engage in illegal production, resulting in the problem of excess capacity in the stainless steel forging market.
In addition, various countries have also adopted a series of trade protection measures in international trade policies. For example, the United States has implemented the “Section 232” which imposes tariffs on a large number of metal material products and restricts the export of stainless steel forging from China, causing a supply-demand imbalance in the market.
II. Practical Cases:
In the first half of 2019, the global stainless steel forging market remained sluggish, and some enterprises faced significant production and business pressures. Due to the existence of excess capacity, the market supply was excessive, and prices fell. Furthermore, international trade protection measures have also had negative effects on the stainless steel forging market.
However, with the gradual recovery of the global economy and the adjustment of national policies, the stainless steel forging market has begun to recover. For example, the central government has continued to promote the “deleveraging” policy and strengthened environmental regulation. These policies are undoubtedly having an impact on the stainless steel forging market. At the same time, some countries have also begun to reduce restrictions on stainless steel forging products, making the market more active. This has also resulted in the gradual balance of the stainless steel forging market.
In conclusion, the dilemma of the stainless steel forging market is indeed severe, but the active governance of the central government and the continuous adjustment of national policies have brought hope for market recovery. Enterprises need to adjust their business strategies in a timely manner based on market trends and policy changes to achieve better economic benefits.
