**Abstract**
[Introduction]: Overcapacity has become a major challenge for the global steel industry, one that must be addressed and resolved. According to a report by Morgan Stanley, the United States, India, and Japan have performed well due to strong demand, while oversupply has not significantly pressured the overall market, leading to better future performance. In contrast, South Korea faces a bleak demand outlook despite an increase in new capacity. Although China's demand remains robust, its overcapacity problem is severe. Meanwhile, Europe’s stagnant demand and difficulty in reducing production capacity make it hard for these regions to tackle the issue of excess supply.
**China’s urbanization is the main driving force for demand**
Currently, the growth rate of China’s steel demand has slowed to a more normal level, but future urbanization will be the key driver of demand. The Chinese government aims to raise the urbanization rate to 70% by 2030. Morgan Stanley estimates that each 1 percentage point increase in urbanization could boost steel demand by 50 million tons. This demand will mainly come from real estate, transportation infrastructure (such as highways and subways), and public service facilities like hospitals and schools.
Real estate construction accounts for 42% of total steel demand, while infrastructure accounts for 25%. Construction machinery uses 15%, and automotive demand makes up 6%. Since 2011, the industry has been de-stocking. Although excavator sales improved in March, current demand is still insufficient to improve equipment utilization or support continued sales growth. Sales are expected to rise by 3% in 2013. The automotive sector, however, shows stronger short- to medium-term demand, with sales expected to grow by 10% in 2013.
**Overcapacity has become a difficult problem for the global steel industry**
China’s steel industry is facing serious overcapacity. Its capacity utilization rate was expected to be 77% in 2013, rising to 83% by 2018. Despite efforts to phase out outdated production and promote consolidation, total capacity reached 920 million tons by the end of 2012. An additional 50 million tons of new capacity is expected to come online in 2013. Unless some loss-making companies close or excess capacity is cut, overcapacity will continue to hinder the industry’s development.
The best-end markets in China are automotive and high-end special steel panels, while marine steel is the weakest.
**Europe is unable to bear the loss of capacity reduction**
Over the past 40 years, Europe’s steel demand has lacked structural growth, reflecting an aging economy. Demand has shifted from investment-driven to consumption-based, leading to declining intensity. The EU-27 currently has about 40 million tons of surplus steel capacity, with long products and commodity-grade plates being particularly oversupplied. Eastern and Southern Europe face even more severe structural overcapacity. While cutting capacity in Eastern Europe could help, low labor costs keep many mills operating.
The strongest steel markets in Europe are automotive and oil/gas steel plates, where ArcelorMittal holds significant shares. The construction industry, on the other hand, is the weakest end-market.
**Japanese restructuring effect inhibits overcapacity**
Japan’s mature economy has led to limited structural growth in its steel market. Steel demand is expected to grow by 4% in 2013. Earthquake reconstruction and public infrastructure projects boosted construction demand by 7% year-on-year in 2012, and this trend is expected to continue until 2015. Automotive demand has fluctuated, but loose monetary policy has weakened the yen, boosting exports. Shipbuilding demand, however, is expected to decline further.
On the supply side, Japanese steel companies have merged, leading to reduced production capacity. The best-end market is long products driven by construction, especially H-beams and rebars. Stainless steel and shipbuilding boards are among the weaker segments.
**The rest of the world: The US is hard to stand alone**
As a developed country, the U.S. steel market has a positive demand outlook. Apparent steel demand is expected to rise by 2.8% in 2013, with growth accelerating after 2014. By 2018, average annual demand growth is projected to reach 4.6%. Key drivers include non-residential construction, manufacturing recovery, and the shale gas boom.
However, oversupply and import competition remain challenges. RG Steel’s bankruptcy closed 6.5 million tons of capacity, but increased production in the South has filled the gap. Despite strong demand, oversupply limits price increases. Import pressure also affects the domestic market, with price differences exceeding $100/short ton attracting foreign steel.
Morgan Stanley forecasts a capacity utilization rate of 83.8% in 2014, rising to 89.2% between 2015 and 2018. The best-end market is non-residential construction, where Nucor and Steel Dynamics are expected to perform well. Thin-plate products, however, are among the weakest.
**India’s oversupply is a false proposition**
India, a large developing country, sees strong steel demand from the automotive and infrastructure sectors. The automotive industry consumes high-end flat products like cold-rolled and coated sheets, accounting for 12% of total demand. Infrastructure growth, supported by government investments in railways, ports, and urban projects, is expected to drive healthy growth in long product demand over the next five to seven years.
Despite strong demand, overcapacity is unlikely in the near future. Raw material shortages, due to mining bans, and project delays caused by land, environmental, and funding issues will limit supply growth. India’s steel output is expected to grow at a compound annual rate of 8.2% through 2017.
The best-end market in India is automotive thin sheet, with Tata Steel and Bhushan Steel holding significant shares.
Rotary Rings
Rotary Rings are a type of rotating seal widely used in various rotating equipment, such as rotary joints, rotary couplings, rotary connectors, etc. Its main function is to prevent liquid or gas leakage and maintain the normal operation of the equipment. In different applications, the material, structure, sealing method, size, etc. of Rotary Rings vary to adapt to different working conditions.
1. Material classification
The materials of Rotary Rings are mainly divided into two categories: metallic and non-metallic.
1. Metal materials
Metal materials mainly include stainless steel, steel, copper, aluminum, etc., which have characteristics of high strength, corrosion resistance, wear resistance, and are suitable for rotary seals in harsh environments such as high temperature, high pressure, and high-speed.
2. Non metallic materials
Non metallic materials mainly include ceramics, silicon carbide, graphite, etc., which have characteristics such as high hardness, high wear resistance, and low friction coefficient. They are suitable for rotary seals under conditions such as low temperature, low pressure, and high speed.
2. Structural classification
The structure of Rotary Rings is mainly divided into three types: unidirectional rotation, bidirectional rotation, and rotational stationary.
1. Unidirectional rotating structure
The Rotary Rings with a unidirectional rotation structure can only rotate in one direction and are suitable for devices with only unidirectional rotation.
2. Bidirectional rotation structure
The Rotary Rings with a bidirectional rotation structure can rotate in two directions, suitable for devices that require bidirectional rotation.
3. Rotating stationary structure
The Rotary Rings with a rotating stationary structure are composed of a rotating ring and a stationary ring. The rotating ring contacts the stationary ring during rotation to achieve sealing, suitable for equipment that requires a rotating stationary seal.
3. Classification of sealing methods
The sealing methods of Rotary Rings are mainly divided into mechanical sealing and liquid sealing.
1. Mechanical seal
Mechanical sealing is achieved through the contact surface between the rotating ring and the stationary ring, which has the characteristics of high reliability, long service life, and simple maintenance. It is suitable for rotary sealing in harsh environments such as high speed, high temperature, and high pressure.
2. Liquid sealing
Liquid sealing is achieved by injecting liquid between the rotating ring and the stationary ring, which has the characteristics of good sealing performance, low friction coefficient, and preventing dry friction. It is suitable for rotary sealing under low speed, low temperature, low pressure, and other conditions.
4. Size classification
The size of Rotary Rings is mainly determined by the equipment requirements, including inner diameter, outer diameter, thickness, shaft diameter, etc.
Rotary Rings, as an important type of rotary seal, are widely used, with different materials, structures, sealing methods, dimensions, etc. to adapt to different working conditions. When selecting Rotary Rings, it is necessary to make the selection based on specific equipment requirements to ensure the normal operation of the equipment.
Rotary Seals,Rotary Lip Seal,Rotating Shaft Seal,V Seals
DG Zhongxingshun Sealing Products Factory , https://www.zxs-seal.com