TISCO Stainless: Entering a boom cycle, continuing to achieve full production and sales, and aim to triple production capacity within 3 years

TISCO Stainless is a leading company in stainless steel, with 300 series and 400 series stainless steel coils in a leading position in China. The annual production capacity of stainless steel reaches 450 tons. Baowu’s stainless steel assets are mainly Baosteel Desheng with an annual output of more than 2 million tons. Taigang’s entry into the Baowu system is expected to reduce the degree of competition in the industry and increase the right of both parties to speak in the stainless steel field. Form stronger industry competition.

The latest fundamentals:

3 times the production capacity in 3 years

After entering Baowu, the goal is to reach 1,500 tons of stainless steel production capacity by the end of 2023, and the current capacity is 450 tons.

The first is the upgrade of the Taiyuan Department, which currently has 100 replacement capacity indicators; the second is that the second domestic base will be launched immediately, and the layout will be along the river and coast; the third is the overseas layout, where nickel resources are concentrated.

Continue to expand production this year and increase the proportion of high value-added products

The output is planned to increase year by year, with 417 tons of stainless steel in 20 years, and the goal of further increasing stainless steel to at least 420 tons in 21 years. Among them, the proportion of high value-added 400 series chromium stainless steel has increased, and the replacement of imported products with high nickel should increase the production volume.

The product is relatively full, and the profitability of silicon steel driven by the demand for new energy vehicles is also very good

TISCO’s advantage is that it has a complete range of products, its output has always been full, and its tube sheet profile is available; the 200 series does not produce, the 300 series accounts for 60%, the 400 series 40%, and the subsequent 400 series will increase the proportion. The company’s stainless steel direct supply ratio is 80-90%. Profitability, 400 series is better than 300 series, net profit per ton is 300-400 yuan.

The profitability of non-oriented silicon steel is also very good. Recently, both demand and profitability have rebounded, mainly due to the demand for electric motors for new energy vehicles.