Industry News

1、 Demand and price fluctuations
Weak terminal demand
The demand for construction steel continues to decline: In 2024, residential construction in Europe and America was suppressed by high interest rates, and the steel demand in the construction industry decreased by 1.9% year-on-year, dragging down the use of light steel keel.
Steel prices fluctuate downward: In 2024, the price of hot-rolled coils in the United States fell by 9%, and the price of cold-rolled coils fell by 6%; Although there was a short-term rebound in March 2025 (with a month on month increase of 11.9% in finished steel imports), it returned to a downward trend in April due to insufficient demand.
Cost transmission pressure
Fluctuations in raw material prices: In April 2025, the United States imposed steel import tariffs (up to 125%), causing the import price of stainless steel cold-rolled coils to soar from $850/ton to $1450/ton, and the production cost of light steel keel to increase sharply by 70%.
Downstream industries are under pressure: The cost of a single vehicle in the automotive manufacturing industry has surged by $1200, and Ford F-150 has reduced its investment by $1.5 billion due to the price increase of stainless steel components, indirectly suppressing the demand for light steel keel.

2、 Trade policy shocks
Tariff barriers reshape supply chains
Direct export restrictions: China's direct exports of steel to the United States account for only 0.81% of the total (890000 tons in 2024), and the share of cold-rolled products (29% of exports to the United States) has further shrunk after tax increases.
Blocked transit trade: The United States restricts the transit of Chinese steel through Mexico, with a comprehensive tax rate of 35%, and the transit path of Vietnam's 143% increase in steel exports to the United States is frustrated.
Local production capacity lags behind in filling gaps
Shortage of high-end categories: The import price of special steel such as nuclear power pressure vessel steel has increased by 120%, and the expansion of electric furnace steel plants requires an 18 month cycle. In Q1 2025, the production of stainless steel crude steel will only be 520000 tons (a gap of 840000 tons).
Low capacity utilization rate: The crude steel capacity utilization rate in the United States has been hovering around 75% -80% for a long time, lower than China (92%) and the European Union (85%).

3、 Application scenario changes
Delay in demand for civil buildings
Delayed recovery of residential construction: High interest rates have led to a 23% delay in shale gas pipeline projects by 2024, and the substantial recovery of residential construction has been postponed until 2025.
Commercial project contraction: Tesla Cybertruck suspends expansion due to stainless steel supply interruption, resulting in reduced demand for commercial space decoration.
Driven by green building policies
The penetration rate of prefabricated buildings has increased: the proportion of prefabricated buildings in the United States has risen from 15% in 1965 to 75% in 2000, and light steel keel as the core material has benefited from the trend of standardized construction.
Energy saving demand growth: Policies promote the application of environmentally friendly building materials, and the 100% recyclability of light steel keel meets emission reduction targets.