Yongjin shares rapid expansion of new production capacity can be digested by the market?

According to Yongjin shares investor relations activity record table, investors asked: the company is expanding rapidly, whether the new capacity can be digested by the market?

Yongjin said that, on the one hand, with the improvement of cold rolling technology and product quality, domestic precision cold rolled stainless steel strip production increased year by year, but the thickness of ultra-thin, ultra-flat, ultra-hard precision cold-rolled stainless steel strip below 0.2mm, only a small number of domestic enterprises can produce, can not meet the growing domestic demand for high-end industry.

Yongjin Co., Ltd., as the leader of stainless steel cold rolling industry, the precision cold rolled stainless steel products produced by the company have been widely recognized by domestic and foreign markets, and part of the production capacity can be digested through import substitution and export. On the other hand, the demand for downstream applications is growing rapidly, with an apparent consumption of 25.6 million tons in 2020, an increase of 6.5%. With the continuous demand for high-quality stainless steel in large-scale construction projects driven by the "Belt and Road Initiative" strategy, emerging stainless steel applications also continue to increase, such as stainless steel pipes, industrial factory roof tiles and so on.

At present, the market share of the company is not high, and there is still more room to rise. In 2020, the market share of the company's wide products is about 11.2%, and the market share of precision products is about 17.8%. The company has strong competitiveness in product quality and cost, and the comprehensive price ratio of the products is high. bring favorable conditions to market development. At present, the company's new production capacity after the completion of good product sales, with the experience and ability to digest the new capacity.

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