Epidemic Spread, Why China’s Stainless Companies Ronsco Stand?

First of all, Economic environment and policies

I. Domestic economic environment:

China's GDP grew 4.8% yoy in q1 2022 (4.5% above average market forecast).Credit conditions in China are expected to ease after the People's Bank of China (PBOC) recently released reserve requirement ratio (RRR) and benchmark mortgage rate cuts, following monetary tightening in 2021.  At the same time, China's fiscal policy is expected to be relaxed. The loose monetary environment and fiscal policy indicate the government's confidence to boost consumption and domestic economic , which will provide a good economic environment for the revitalization of the stainless steel industry. Ronscois alsoone of the stainless steel manufacturer benefiting from this.

Ii. National policies

At the Global Trade and Investment Promotion Summit, President Xi stressed that China will make concerted efforts to defeat the epidemic, revitalize trade and investment, adhere to innovation-driven, and improve global governance. China will continue to foster a market-based and law-based international business environment, implement the Regional Comprehensive Economic Partnership agreement at a high level, and promote high-quality Belt and Road Initiative cooperation. The forward-looking strategic plan will better promote win-win cooperation between China and the rest of the world, and provide more market, investment and growth opportunities for the global business community.

And then, Industry Status:

The resumption of work and production nationwide is proceeding in an orderly manner, stainless steel is less affected by the epidemic.

The epidemic outbreak in China mainly involves stainless steel distribution centers, while stainless steel production areas and raw material production areas are less affected. Because factories in raw material producing areas are generally close to ports, far from densely populated urban areas, the range of mobility is small. From the perspective of output, as shown in the figure, after February, the output of stainless steel crude steel showed an increase in the month, which is related to the increase of working days of Chinese stainless steel enterprises after the Spring Festival overhaul.With the orderly progress of resumption of work and production across the country, it is expected that the output of stainless steel will maintain a growth trend.  As the picture shows:

After more than 20 years of development, China's stainless steel industry has adhered to the concept of innovation and development, and the quality of varieties and technological levels have been significantly improved. Stainless steel products with different characteristics have entered the international market one after another, and the popularity and influence of China's stainless steel products have continued to increase. Many outstanding Chinese enterprises have invested in new stainless steel production lines, and Ronsco is one of them.In 2021, Chinese stainless steel output will increase by 5.1% to 32.633 million tons, accounting for 56.0% of the world's stainless steel output.China has become a major country in the production and consumption of stainless steel in the world, and is moving towards a strong country in the development of the stainless steel industry.

China's stainless steel industry chain is complete,and stainless steel products are widely used.

The stainless steel industry chain consists of upstream raw materials, midstream manufacturing, and downstream applications. The upstream raw materials mainly include iron ore mining, scrap steel utilization, nickel-chromium ferroalloy, etc.; the midstream includes stainless steel suppliers of various profiles; the downstream application fields mainly include the automotive industry, building decoration, transportation, catering utensils, medical equipment, etc.

75% of stainless steel in China is used in manufacturing, most of which are used in metal products, housing construction andpublic infrastructure construction, construction machinery and other manufacturing fields. As large as mechanical equipment, chemical energy manufacturing, building materials decoration, as small as the pots and pans we use on weekdays, household appliances, etc., many of them are inseparable from the composition of stainless steel. Ronsco provide common and customized stainless steel and nickel alloy pipe, pipe fittings, plate, coil, strip, bar, profiles which are widely used for industries of petroleum, chemical engineering, nuclear power, marine vessel metallurgy, sewage disposal, aviation and aerospace. With the development of economy and the breakthrough and innovation of stainless steel industry technology, the application of stainless steel in life will be more extensive in the future, and the development prospect will be better.