On the current market situation, shinestar believes that the African continent is likely to become a major point of potential future growth Chinese steel exports, Chinese for steel enterprises to "go global" to provide new market opportunities, but there are certain risks.As a DSAW steel pipe, api 5l steel pipe, piling pipe, welded steel pipe,and other products service providers, shinestar said it will seize the opportunity to meet the challenges.
Why does South Africa offer new opportunities for Chinese steel enterprises?First, South Africa has a huge potential for developing the steel industry.1,South Africa belongs to the first echelon of economic development in Africa, with a good economic and industrial foundation, and "steel needs".2,the rich mineral resources in South Africa provide opportunities for steel enterprises to reduce costs.3, South Africa's local steel enterprises overall production capacity is low.In this way, China's steel enterprises through equity participation, joint ventures, or even wholly owned factories, "test the water" the South African market, with its own scale of production advantages, build a competitive advantage in the South African market.
Second, why is there a risk in entering the South African market?1,the current South Africa is a net exporter of steel products, Chinese steel enterprises to invest and build factories in South Africa is likely to break the balance of supply and demand of local steel, and once the demand can not steady growth, investment in South Africa is likely to fall into the South African plant overcapacity predicament.2,in order to protect its steel industry, South Africa is extremely resolute in its anti-dumping activities against foreign enterprises' primary steel products.Last March 24th, in July 26th, South Africa has launched an investigation into various steel products.
Because of this, we need to work in two ways if we want to root out the South African market and then gain a foothold in the African continent:Steel enterprises and research institutions should actively promote the technological upgrading of iron and steel, adjust the production structure of iron and steel products, thereby optimizing the trade structure of iron and steel products;We will strengthen and improve the research and development capabilities of iron and steel products, and strictly regulate industrial practices, such as industry access, industry supervision, energy conservation, environmental protection and other measures;Win through quality, avoid low price competition of steel products and reduce international trade friction.
The state should further increase relevant policy support, such as loans, export enterprises, insurance and other related policy support;Encourage the export of iron and steel enterprises, encourage overseas investment in iron and steel enterprises, and strengthen international cooperation in steel production capacity;Guide the polymerization of more global impact of China's iron and steel enterprises, to further improve the global impact of China's steel and discourse rights, and gradually cultivate transnational investment and management capabilities.