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You are here: Home » News » Adapt to the new normal, to accelerate the supply side of the seamless steel pipe industry structural reform

Adapt to the new normal, to accelerate the supply side of the seamless steel pipe industry structural reform

Views:5     Author:Site Editor     Publish Time: 2018-08-12      Origin:Site

During the “Twelfth Five-Year Plan” period, the output of seamless steel pipes in China increased rapidly, reaching 60% of the world's total output. China's steel pipe industry provided Important raw materials for the national energy, construction, machinery, automobiles, home appliances, shipbuilding and other industries, as well as the rapid development of the national economy.

However, the excessive growth of production capacity in the seamless steel pipe industry has also brought the industry into a difficult position. Throughout the operation of China's steel pipe industry in 2016, the following characteristics are presented: First, the domestic seamless steel pipe market is more than demanding; the second is the import and export of steel pipes showing a “quantity and price drop” situation; l, but the increase in the price of steel pipes is less than that of the original (auxiliary) materials; Fourth, the economic benefits of the steel pipe industry are still at the bottom of the main metallurgical industry in China. The business situation is extremely severe and the differentiation is further intensified. It is worth noting that some enterprises rely on technological innovation and a series of structural changes such as internal management to actively adapt to the “new normal” and achieve certain performance in the quality and efficiency of enterprise development.

The current outstanding problems facing the seamless steel pipe industry:

Market demand has fallen, and overcapacity has emerged. In 2016, China's oil well pipe sales fell by 40%. At present, China's steel pipe capacity utilization rate is 67%, of which the seamless steel pipe capacity utilization rate is less than 60%. As China's economic development enters the "new normal", the imbalance of production capacity, output and apparent consumption of seamless steel tubes will become a prominent contradiction in the future. Unfair market conditions exacerbate vicious competition. At present, in addition to the lack of effective industry self-discipline, the most common reflection of seamless steel pipe enterprises is the lack of a fair market competition environment. In the international arena, trade protectionism is prevalent, and anti-dumping on China's seamless steel pipes is increasing. In the domestic market, in order to maintain its position in the seamless steel pipe industry, individual companies use the overall advantages of the Group to profit or diversify with other steel products. Profit subsidies for seamless steel pipes; and some companies use their own supply chain monopoly advantages to implement internal corporate protectionism. These factors have led to price warfare between different domestic enterprises, state-owned enterprises and private enterprises in both domestic and international markets.

We need to do as below:

(1) Strictly implement the Environmental Protection Law, and order the production of pollutants that do not meet the emission standards, and order them to close down and close.

(2) Strictly implement the energy conservation law, and the seamless steel pipe production capacity that still meets the mandatory standards such as the energy consumption limit of the unit product after the rectification shall be shut down according to law.

(3) Strictly implement the product quality law. If the quality of seamless steel pipe products does not meet the requirements of mandatory standards, it shall be investigated and ordered according to law and ordered to suspend production and rectification. If the requirements for rectification are not met, the exit shall be closed according to law.

(4) Strictly implement the safety production law. For seamless steel pipe production capacity that does not meet the requirements of the enterprise safety production standardization level III and the safety conditions fail to meet the safety regulations standards, it is necessary to immediately suspend production and rectification or shut down according to law.

Hope the market of seamless steel tube will be better in the future.

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