China to Increase Stainless Steel Exports with New Silk Road Strategy

Consumption of stainless steel in China in 2014 reached 17.464 million tons with an annual increase of 11 percent, which, however, fell compared to last year. According to customs statistics, China exported 3.852 million tons of stainless steel in 2014, increasing shipments by 43.4 percent.

Meanwhile, China produced 23.161 million tonnes of raw stainless steel in 2014, increasing production by 16.4 percent year on year. China, which produces half of the world's stainless steel, suffers from low supply potential. As the slowdown in China's growth becomes the new normal, and overseas markets are a dubious prospect, and export prices of commodity products plummet, leaders of China's metallurgical industries are looking for new businesses.

Against this backdrop, Beijing has decided to implement the One Belt and One Road (OBAOR) strategy to create new markets for Chinese products by encouraging China's investment in infrastructure in less developed countries. One Road refers to the 21st century maritime Silk Road, and One Belt refers to the Silk Road of an economic belt designed to revive ancient trade links.

According to Li Xinchuan, vice secretary of CISA, the OBAOR strategy will provide China with many new opportunities. In addition, World Bank economists believe that despite China's more than advanced building materials capabilities, this strategy has benefits for the global economy as well as the stability of China's development. However, this target could provide conflicting results, especially when China's overseas investment undermines demand for Chinese goods.