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At the beginning of 2018, all silicon calcium producers in Ningxia had recovered production, but reduced by 50 percent of the output. Production of Shaanxi and Inner Mongolia, the main production areas of silicon calcium, kept normal, but the spot of silicon calcium was still in short supply. Production of metal calcium in Shanxi is relatively normal, but on the eve of the Spring Festival, most of the producers are limited production to 50 percent. Affected by environmental protection, cost of raw materials and other factors, production of most of cored wire producers in Anyang, Henan Province, Jiangsu and Shandong provinces were less optimistic. Some of producers said that it was difficult to purchase the raw materials for cored wires and the market price was too high, so they had to reduce production or take a wait-and-see attitude. Production of strip steel producers in Hebei Province was normal and the overall price fluctuation is small.

After Spring Festival holiday, producers of raw material and cored wire put back on normal production successively. Silicon calcium production of Ningxia, Shaanxi and Inner Mongolia was normal. Production of Henan, Jiangsu and Shandong, the main production areas of cored wire is relatively normal. Most of metal calcium producers in Shanxi are still limited production to 50 percent, which remained normal by and large. Production of the strip steel producers in Hebei was normal with relatively stable orders.

In mid-to-late March, production of most cored wire producers in Anyang, Henan Province was less optimistic. Domestic market price and export price of cored wire remained stable. Production of Shaanxi and Inner Mongolia, the main production areas was normal in which there were more inquiries but less actual transactions.

In mid-to-late April, production of raw material and cored wire producers was normal. Silicon calcium production in Ningxia, Shaanxi and Inner Mongolia was normal, but the actual transaction price was low. Production in Henan, Jiangsu and Shandong, the main production areas of cored wire, was normal. The production was determined according to orders. The orders were maintained depend on regular customers. Most of the metal calcium producers in Shanxi were still limited production to 50 percent and maintained normal by and large. Affected by demand, the trend of metal calcium was less optimistic with weak operation. Some strip steel producers in Hebei Province said that, cold rolled strip steel market was stable in operation and the raw material and supply and demand market was stable recently.

In May and June, affected by environmental protection, most of cored wire producers in Anyang, Henan Province still got no improved and many silicon calcium producers halted production due to environmental protection. Production of Shaanxi and Inner Mongolia, the main production areas, was normal, the order situation was less optimistic and actual transaction was not so much. The production and overall output of metal calcium in Shanxi were stable.

From July to October 2018, there was no remarkable change in domestic cored wire industry with poor transaction and maintained the original state by and large.

In general, domestic cored wire industry in 2018 is lackluster. The prices of cored wire products are basically in the state of low consolidation. Additionally, affected by environmental protection standards, descending demand, rising prices of raw materials and labour cost, profit space of numerous cored wire producers further reduced. Most of producers maintain orders mainly depend on regular customers and determine output according to the volume of the orders. Some group enterprises produce cored wire products for internal uses. Some of them take a wait-and-see attitude. Some small and medium-sized producers are difficult to sustain and had to halt or transform.

In recent years, the problems of price in domestic market are in industrial value-added tax. Price competition worsens the development environment on the tax point. Due to the lack of industrial knowledge and property right awareness in the industry, it is necessary to be careful in marketing. Even if good products are available, they dare not to put them into the market directly. It is urgent to establish the industrial association to promote sound development of the enterprises, to achieve information share, to build up industrial brands, to serve the enterprises based on industrial chain of cored wire to create a win-win situation.

Limited by backward domestic production technology, there is a large gap between domestic cored wire enterprises and international production enterprises. Therefore, domestic enterprises intend to strengthen exchanges and study with foreign advanced enterprises.

At present, it is imperative for the industry to develop in the direction of integration of production, study, research and application. Some enterprises have started to connect with scientific research institutions with metallurgy research and development programs to establish strategic partnership, develop new products, expand new ideas, seek new projects and create new opportunities.

In order to establish and perfect the product standard of cored wire, to enhance market competitiveness of the products with new technologies and to expand the scale of the industry, the establishment of the cored wire industry association has been extremely urgent. Also, the insiders should participate in cored wire industrial chain summit once a year and other relevant activities actively. An industrial peak forum should be established to provide the industry elites with a broader platform for communication and cooperation on which they can put heads together and develop together.

2018 is drawing to a close and 2019 is coming soon. As the saying goes that many hands make light work. We have reason to believe that under the guidance of numerous industrial elites, China’s cored wire industry will embrace new opportunities and write a new chapter in the new year and make greater contribution to the early realization of the “Chinese dream”.

• [Editor:張德眾]