Valin Iron and Steel: steel demand formation in the second half of the year to support the second phase of the automotive plate project is expected to be put into production in October

Valin Iron and Steel recently said in a survey by investors that the economic underpinning in the second half of the year still needs the efforts of traditional infrastructure and real estate. In the future, with the epidemic under effective control, the effect of counter-cyclical policies may be further revealed, which will support the demand for steel.

At the same time, Valin Steel said that production and operation remained stable and orders were full in the first quarter of 2022. Still maintain the situation that the board is strong and weak, and the demand in the industrial sector is better than that in the construction industry. In terms of plates, shipbuilding, wind power, automobiles, electrical steel, bridges, etc., continue the better demand situation in 2021, construction machinery, heavy trucks and other demand is basically stable, but still weak than the first half of last year; long materials, March entered the steel consumption season, its demand rebounded from the low in the fourth quarter of 2021; seamless steel pipe by the rebound in oil prices and other factors, demand and orders improved.

With regard to the variety structure adjustment plan, Valin Iron and Steel said that it will continue to follow the market demand and the direction of high-end manufacturing transformation to refine and strengthen the main steel industry, and in terms of plates, wide and thick plates continue to consolidate their competitive advantages in downstream market segments such as shipbuilding, marine engineering, high-rise bridges and wind power. In terms of sheet metal, further extend the industrial chain, improve deep processing capacity, enhance the added value of products, and accelerate the commissioning of the second phase of automobile plate to meet the high-speed growth demand of new energy vehicles; in terms of line and bar, actively promote the transformation of varieties from "excellent steel" to "special steel", and plan to increase the proportion of special steel from 10% to more than 25% by the end of the 14th five-year Plan. In terms of seamless steel pipes, we will increase the upgrading and transformation of steelmaking systems to enhance our competitiveness in the fields of oil and gas, machining, pressure vessels and so on.

It is reported that Valin Iron and Steel is accelerating the construction of the second phase of the automotive plate project, which is expected to be put into production in October 2022. With a total investment of 1.07 billion yuan, the production capacity of acid rolling line will be increased from 1.5 million tons to 2 million tons per year, and the production capacity of galvanizing line and continuous withdrawal line will be increased from 1.15 million tons to 1.6 million tons. It is expected that the third generation cold formed ultra-high strength steel and zinc-magnesium alloy coating products will be introduced.