1. Prominent problems in the development of the stainless steel flange industry

(1) Overcapacity

The stainless steel flange industry has dispersed production capacity and low concentration. The output of the two leading enterprises, Taigang and Baosteel, accounts for less than half of the national total, and the capacity utilization rate is low. In contrast, the capacity concentration in Europe and South Korea exceeds 3/4. In addition, the recycling of waste in the production, deep proceeding and consumption of the stainless steel flanges, as well as the recycling of waste nickel and chromium in related industries, still needs to be strengthened.

(2) Insufficient high-end products

Since joining the WTO, China's stainless steel flange industry has developed radidly and its production capacity has increased year by year. With a complete industrial chain and good infrastructure, internationally renowned brand manufacturers have moved their production bases to China.

2. Challenges and countermeasures faced by China's stainless steel flange industry

Challenges

(1) Capacity consumption problem

It is expected that in the next 3-10 years, the stainless steel flange industry will face the challenge of overcapacity and need to digest the excess capacity by exploring the international market.

(2) Raw material supply problem

Stainless steel flange production relies on imported raw materials, especially laterite nickel ore. China's laterite nickel ore comes from Indonesia, but Indonesia has banned the export of raw ore since 2014.

(3) Cost increase problem

Stainless steel flange companies need to reduce production costs and improve competitiveness through technology upgrades and process improvements.

Countermeasures

(1) Optimize the capacity structure

Strengthen industry integration, improve capacity concentration, promote enterprise mergers and reorganizations, optimize resource allocation and improve the overall efficiency of the industry.

(2) Expand raw material supply channels

Diversify raw material supply like Malaysia and Philippines and promote the recycling of scrap nickel and chromium to improve resource recycling rate.

(3) Technological innovation and cost control

Through intelligent production and management, optimize the supply chain and reduce overall costs.

(4) Expand international markets

Encourage enterprises to "go global" and actively explore international markets, especially countries along the "Belt and Road". By improving product quality and brand influence, expand exports and alleviate the pressure of domestic overcapacity.

3. Future prospects

With the acceleration of China's industrialization process, the demand for industrial stainless steel flanges will continue to grow. Enterprises need to seize opportunities, improve their competitiveness through technological innovation, cost control and market expansion, and promote high-quality development of the industry.