NEWS&CASES
I. Production Overview
(1) Total Output
In June, Jiangsu Sushang Steel Co., Ltd. faced certain challenges in production due to the overall market environment and seasonal factors. However, with effective production scheduling and equipment optimization, the company still achieved a total output of 1.485 million tons for major metal products. Although this represents a 5.3% month - on - month decrease, compared to the same period last year, there was a 2.1% growth. The production lines strived to maintain stable operation, ensuring the fulfillment of key customer orders.
(2) Output by Product
| Product Type | Output (10,000 tons) | MoM Growth | YoY Growth | Key Highlights |
|---|---|---|---|---|
| Copper | 19.8 | -7.9% | 3.1% | Adjusted production based on market demand, with a focus on high - end copper product R & D |
| Stainless Steel | 40.1 | -5.2% | 5.3% | 316L - series high - quality stainless steel output increased by 15% |
| Carbon Steel | 55.2 | -5.8% | 2.3% | High - strength carbon steel for special projects showed stable production |
| Galvanized Steel | 23.5 | -7.5% | 4.8% | Further improved the anti - corrosion performance of galvanized layers |
| Alloy Steel | 8.3 | -4.6% | 1.8% | Completed the production of a batch of high - precision alloy steel for aerospace projects |
| Cable Trays | 0.28 (10,000 sets) | -6.7% | 8.9% | Launched a new - generation intelligent cable tray prototype |
II. Sales Performance
(1) Total Sales Volume
In June, the company's total sales volume reached 1.443 million tons, a 5.5% decrease compared to the previous month but a 3.1% increase year - on - year. Domestic sales accounted for 1.152 million tons, while international sales reached 291,000 tons, accounting for 20.2% of total sales. The company actively explored emerging domestic and international markets to offset the impact of the decline in some traditional markets.
(2) Sales Volume and Revenue by Product
| Product Type | Sales Volume (10,000 tons) | MoM Growth | YoY Growth | Revenue (RMB 100 million) | Key Markets |
|---|---|---|---|---|---|
| Copper | 19.2 | -7.7% | 2.8% | 30.1 | Expanded cooperation with new energy vehicle manufacturers |
| Stainless Steel | 39.4 | -5.1% | 4.9% | 75.2 | Gained more market share in the high - end kitchenware market in Europe |
| Carbon Steel | 54.6 | -5.5% | 2.0% | 61.8 | Stable orders from large - scale infrastructure construction in the Middle East |
| Galvanized Steel | 22.9 | -8.0% | 4.5% | 30.2 | Increased sales in the solar energy support structure market in Southeast Asia |
| Alloy Steel | 8.1 | -5.8% | 1.5% | 15.8 | Collaborated with leading high - end equipment enterprises in the United States |
| Cable Trays | 0.27 (10,000 sets) | -6.9% | 8.5% | 5.4 | Won bids for several large - scale data center projects in China |
III. Inventory Status
At the end of June, the company's total inventory slightly increased to 258,000 tons, a 9.3% increase from the previous month. The inventory adjustment was mainly to cope with potential market demand fluctuations. Inventories of various products were as follows:
- Copper: 35,000 tons (+9.4% MoM)
- Stainless Steel: 82,000 tons (+5.1% MoM)
- Carbon Steel: 102,000 tons (+7.4% MoM)
- Galvanized Steel: 27,000 tons (+8.0% MoM)
- Alloy Steel: 6,500 tons (+8.3% MoM)
- Cable Trays: 220 sets (+10.0% MoM)
IV. Market Analysis
(1) Domestic Market
Demand Side
- Copper: The growth rate of demand from the power grid transformation project has slightly slowed down, but the emerging energy storage industry has brought new growth points.
- Stainless Steel: The demand from the traditional kitchenware and decoration industries remained stable. The demand for high - end stainless steel products in the medical and food processing industries showed significant growth.
- Carbon Steel: Although infrastructure projects continued to progress, the rainy season in many regions affected the construction progress, resulting in a certain slowdown in the demand for construction steel.
- Galvanized Steel: The demand for solar mounts continued to rise, but the growth rate was lower than expected due to the adjustment of some local solar energy subsidy policies.
- Alloy Steel: The high - end equipment manufacturing and wind power industries maintained strong demand, but the procurement rhythm of some enterprises was adjusted due to cost considerations.
- Cable Trays: The construction of data centers and intelligent warehouses continued to drive the demand for cable trays, but the competition in the market became more intense.
Price Trends
- Copper prices fluctuated within a narrow range. Although the global supply - demand relationship was relatively balanced, the weakening of the economic recovery expectation in some regions restricted the upward momentum of prices.
- Stainless steel prices showed a slight downward trend. The increase in domestic production capacity and the decline in the price of nickel, an important raw material, put pressure on prices.
- Carbon steel prices decreased slightly. The impact of the off - season demand and the relatively high inventory level in the market led to a decline in prices.
- Galvanized steel prices were relatively stable. The cost - push effect of raw materials and the relatively stable demand in the market jointly maintained price stability.
- Alloy steel prices increased slightly. The continuous rise in the cost of special alloy elements and the strong demand in some high - end fields supported price increases.
- Cable tray prices remained stable. The market competition was mainly reflected in product quality and service rather than price.
(2) International Market
Demand Highlights
- Infrastructure construction in Africa showed strong momentum, which significantly increased the demand for carbon steel and stainless steel.
- The recovery of the European automotive industry drove the export of alloy steel.
- The booming development of the solar energy industry in the Middle East continued to increase the order volume of galvanized steel.
- The construction of data centers in countries along the Belt and Road Initiative promoted the export of cable trays.
Challenges and Opportunities
- High ocean freight rates still existed, but there was a slight downward trend, which slightly alleviated the cost pressure on exports.
- Some new trade protection measures in certain regions restricted the company's product exports to these areas.
- The two - way fluctuation of the RMB exchange rate increased the uncertainty of settlement, and the company strengthened exchange rate risk management.
V. Future Outlook
Capacity Expansion
The company plans to start the construction of a new 80,000 - ton stainless steel cold - rolling production line in the third quarter, which is expected to be put into operation by the end of the year. This will further enhance the company's production capacity and product quality in the high - end stainless steel market.
Market Development
The company will continue to focus on the high - end metal material markets in Southeast Asia and the Middle East. It will increase market promotion efforts, establish local sales and service teams, and better meet the needs of local customers.
Product Upgrades
The company will increase R & D investment in duplex stainless steel and high - corrosion - resistant galvanized sheets. It aims to launch at least two new products with independent intellectual property rights in the second half of the year to improve the company's product competitiveness in the market.
Digital Transformation
The company will accelerate the construction of a smart factory, introducing advanced digital management systems and intelligent manufacturing equipment. It is expected to improve production efficiency by 12% by the end of the year, reduce production costs, and enhance the company's overall competitiveness.