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Policy encourages the development of alternatives
For the digestion of high-priced steel, in addition to compressing profits or transferring costs, downstream product manufacturers are actively looking for alternatives to reduce production costs. In fact, as early as 2005, the State Council promulgated Article 33 of the "Iron and Steel Industry Development Policy" to encourage research, development and use of new materials with high performance, low cost and low consumption to replace steel.
Everbright Securities analyst Zhao Zhicheng expressed that the replacement of new materials has long appeared. From the current situation of rising steel prices, it will further stimulate the development of new material industries. According to its introduction, the number of materials used to replace steel is now quite large, mainly depending on relative prices. For example, replacing steel with plastics, aluminum, and wood has become the norm. However, from the current point of view, alternative new materials are still subject to many constraints and are under development.
Fang Lei, an analyst at Industrial Bank, is not optimistic about this. He said that the rapid development of the new materials industry in the short term is still unlikely, and that such industries are relatively small and unlikely to be carried out on a large scale. "However, this is an industry with broad prospects," he said.
Alternative materials to save environmental protection
Many new materials that replace steel are gradually being developed. The high-strength bamboo profile technology mastered by a bamboo leaf company in Chengdu has passed the expert appraisal commissioned by the Science and Technology Department of the State Forestry Administration and organized by the Sichuan Provincial Department of Forestry. According to Mr. Chen, the deputy director of the project, the establishment of this technology represents the realization of the use of bamboo to enter certain areas of steel use. For example, building beams, doors and windows, etc., can use bamboo instead of steel.
It is understood that even if it has not been processed, its fibrous tissue is particularly developed and its longitudinal tensile strength is 5-6 times that of medium carbon steel. If it is dehydrated, dried, dipped, and other processes, bamboo will become "Plant steel." According to Mr. Chen, this “plant steel†is lighter than steel and stronger than cement. Not only can be used to manufacture home, decoration materials, can also be used to build earthquake-resistant housing.
However, experts in the industry have stated that if bamboo is used as a substitute for steel, ecological problems will be highlighted. Therefore, it is suggested that the replacement of new materials should be implemented in accordance with the principles of conservation, environmental protection, etc. Otherwise, this will not be worth the candle.
Steel prices skyrocketing development of alternative materials spring tide
After Japan and South Korea agreed that the two iron ore benchmark prices rose by 65% ​​and 71% respectively, European steel companies also reached an agreement with Vale to receive a 65% rise in iron ore prices in the new year. Steel production enters a high-cost era. This will inevitably lead to the emergence of new alternative materials.