Foreign market downturn-Stainless steel giants seize the Chinese market

Finland's Outokumpu, the world's leading stainless steel producer, stated on the 1st that it has officially opened its processing and distribution center in Kunshan, Jiangsu. It is reported that the center's investment amounted to 20 million euros (about 170 million yuan), is the first stainless steel entity established by Outokumpu in China.

At the launching ceremony, the Finnish Ambassador to China, Tao Tao, said that in 1990, only three Finnish companies invested in China, and today the number has become more than 260. "China is the world's largest and most promising market, any Finnish companies that are determined to be the world's number one should all land in China."

“In 2009, stainless steel consumption in the European market fell by 25%, while China increased by 18% in the same period. According to forecasts, the demand for stainless steel in the Chinese market will increase by about 15% this year, which is why we set up factories here.” Outokumpu CEO Rantine said.

Data shows that Outokumpu's share of the global stainless steel market is about 5%, but the market share of some special varieties such as duplex stainless steel has reached nearly 50%. At present, the Asian market including China only accounts for about 14% of Outokumpu's global sales, and there is still room for improvement. “This time we set up a processing and distribution center in Kunshan, in order to be more closely attached to Chinese customers, to meet some individual needs in product transportation and technical specifications.” Rantening said.

Outokumpu expressed great interest in the regional planning that the Development and Reform Commission introduced in the past, positioning the Yangtze River Delta as a “global important advanced manufacturing center”. “Duplex stainless steel itself is a new material, it can be used for nuclear power equipment in the new energy industry, and it can also be used in water treatment equipment in the energy conservation and environmental protection industry.” Rantening told reporters that he is very optimistic about the development of advanced manufacturing in the Yangtze River Delta. Market opportunities in the industry and strategic emerging industries, which will be the main direction of the company's business development.

In response to market rumors that Baosteel will cooperate with Outokumpu, Rantini expressed a clear denial that “we have not had any form of cooperation with Chinese steel companies so far”. However, he also pointed out that Chinese counterparts are welcome to join in research and development and market competition for special varieties such as duplex stainless steel. "Only more companies can participate in creating a good environment for the marketing of new materials."