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Steel pipe industry focus

Dec. 26, 2019

The situation facing China's steel pipe industry in 2019 has opportunities and challenges, and the opportunities outweigh the challenges. The key to doing well in the steel pipe industry depends on the steel pipe enterprises to continuously emancipate their minds, develop ideas, strengthen confidence, work together, and exercise self-discipline. From an international point of view, the economic situation is complex, trade frictions are becoming increasingly serious, trade barriers cannot be ignored, downward pressure on the global economy is increasing, export uncertainty is increasing, export difficulties are increasing, imports are increasing, China's steel pipe market has excess capacity and competition Increasingly intense. From a domestic perspective, the efficiency of China's steel pipe companies has improved since 2017, and a new round of capacity expansion in 2018 has increased, which may lay a hidden danger for the healthy development of the steel pipe industry.

There is an unreasonable product structure. From the perspective of China's steel pipe import and export prices in 2018, the average price difference between import and export of seamless carbon steel pipes is US $ 3555.5 / ton, of which the average import price is 3.5 times the average export price; the average import and export price of welded pipes is 1531.7 USD / ton, where the average import price is 2.4 times the average export price. This phenomenon shows that China's steel pipe industry still has a surplus of low-end products, a short board, and a low proportion of high-end product exports. It is not very competitive in the international high-end market, and has not formed sufficient brand support. The industrial structure still needs deep adjustment .

Seamless Steel Pipe

Seamless Steel Pipe

The forms of international trade sanctions are diversified, and are no longer just a single "double counter". The so-called "China threat" theory, national security, intellectual property protection, and trade balance have all become the reasons for trade sanctions. Moreover, the role of the government in the form of international trade sanctions has become more important and direct. For example, the US's 232 and 301 and the EU's steel safeguard measures have broken through the scope of traditional trade remedy measures and increased to the level of economic The balance and friction of trade, its initiation and ultimate impact are highly unpredictable and uncontrollable, which is completely beyond the scope of the steel (pipe) industry or market. Especially under the United States' policies of protectionism, unilateralism and the establishment of new economic and trade rules, global economic and trade tensions are increasingly intensified, or changes in international economic and trade rules will be promoted. Chinese steel (pipe) companies should pay attention to overseas trade frictions New developments to improve the ability to respond to overseas risks.

Although the current price of steel pipes is relatively stable and the profitability of welded steel pipes factory is acceptable, the outlook of steel pipe companies is still not optimistic. Enterprises must not just focus on immediate profits and blindly increase production capacity, which will increase the uncertainty of the supply and demand relationship and market trend of the domestic steel pipe market. Due to the release of new capacity, the author believes that there will be certain variables in the price and demand of steel pipes in 2019, and whether the supply and demand balance pattern can continue. There are uncertainties, but the country should not easily give up Achievements in environmental governance.

There is excess capacity of steel pipes. According to incomplete statistics, it is expected that the new capacity of seamless pipes will reach about 4.5 million tons in 2018-2019, and the new capacity of welded pipes will exceed 1 million tons (stainless steel pipe will increase more).