1. China’s influence on the European plate market
2nd Steel Plate Conference Europe
March 11, 2016, Düsseldorf, Germany
China’s influence on the European plate market
Tetiana Spanchak, Senior Analyst
Andrei Syedykh, Senior Economist

2. China’s influence on the EU plate market:
Direct – by means of supply growth and influence on pricing
Indirect – through falling demand for EU-made steel-intensive products in China

3. China’s influence on the EU plate market:
Direct – by means of supply growth and influence on pricing
Indirect – through falling demand for EU-made steel-intensive products in China

13. Major plate producing mills in China
Company
Start
Mill
Capacity
Thickness
Width
Owner/Plant
year
roll width
annual
min
max
Anshan Iron & Steel Co. / Bayuquan Steel Base
2009
5 500
2 000 5
150
1 500
Shanghai Baosteel Group Co.
2005
5 150
1 800
400
1 300
4 900
China Minmetals Corporation Yingkou Medium Plate Co., Ltd
2010
5 000
420
Anshan Iron & Steel Co.
2003
4 300
2 500 8
4 000
Hunan Valin Iron & Steel Group Co. / Xiangtan Iron & Steel Group Co., Ltd
2008
1 200 6
100
3 900
Shandong Iron & Steel Group - Jinan Plant 25 60
3000
4300
Shandong Iron & Steel Group - Laiwu Plant
3 000
Shougang / Qian'an Steel - Tangshan Plant
2006
900
4 200
Special Steel Group under CITIC Pacific - Jiangyin Xingcheng Special Steel Co., Ltd - Jiangyin Plan
Wuhan Iron & Steel / Echeng
4 250
Shanghai Baosteel Group Co. / Pudong
1 600
200
Chongqing Iron&Steel Corp
4 100
1 400
Hebei Iron & Steel Group / Wuyang Iron & Steel
2007
3 600
Baotou Iron & Steel
3 700
120
3 650

14. Key plate grades offered to China’s domestic market
Source: Mysteel
Product
Thickness
Quality
boiler & vessel plate
6-30
16MnDR, Q245R, Q345R
medium plate
4-28
Common-carbon Q235B, low-alloy Q345B, weathering steel 09CuPCrNi-A, wear-resisting steel NM360A, high-strength steel Q460C
shipbuilding plate
6-29
CCSB
heavy plate
30-50
common carbon Q235B, low-alloy Q345B
ultra-heavy plate
60-120
common carbon Q235B, low-alloy Q345B

19. Steelmakers’ efforts to deal with the situation
Capacity improvement and export
Product range expansion
Getting international quality certificates
Getting closer to consumers
Marketing techniques advance: online platforms, cooperation with large traders

20. State policy: Elimination of backward capacity
Solving steelmakers’ debt problem
Stable exchange rate
Industry consolidation
Internet+
International infrastructure projects

21. China’s influence on the EU plate market:
Direct – by means of supply growth and influence on pricing
Indirect – through falling demand for EU-made steel-intensive products in China

26. EU’s machinery exports to China to further contract and remain depressed
EU’s construction sector to remain on plateau
Mature economies will face a mild recession, no relief can be expected
A major slump in shipbuilders’ orders in Asia will force local steel plate producers to diversify and increase pressure on export markets

27. CIS dynamics

31. Summary:
Despite EU steelmakers’ efforts, global competition will remain tight
Chinese steelmakers are going to fight domestic demand decrease by increasing export
Ukraine may once again become more competitive due to national currency depreciation

32. Thank you for your attention!
Tetiana Spanchak Metal Expert 48b, Naberezhna Peremogy, Dnipropetrovsk, 49094, Ukraine Tel (ext. 185) Tel./Fax URL: 32