Yield and Export of Valves in China Falling

For the pressure of economic downturn, yield and export of valves in China have significant descending trend. Revulsion of market situation brings difficulties to valve manufacturers. Facing with various heavy pressures, manufacturers should adapt to the new normality forwardly, focusing on structural adjustment and upgrading, in pursuit of innovation and quality effectiveness. 

 

For the pressure of economic downturn increasing and price of international crude oil decreasing, in the first half of 2015, both yield and export of valves in China descended. The price of international crude oil dropped sharply while the demands for hydropower, wind power or other green energy grew. The market of valve manufacturers which focused on energy products shrank. The enterprises encounter unprecedented difficulty and the upgrading will be a long process. 

 

In the first quarter, the total loss of 101 steel manufacturers estimated by CISA (China Iron and Steel Association) was 987 million RMB, reduced by 70.39% compared with the same period of last year. Among that, profit of main business was -11.053 billion RMB. The loss was increased by 45.04% on year-on-year basis. It showed that profitability of steel manufacturers dropped further. Although the falling range of cost caused by price of iron ore decreasing was 500~550 RMB per ton, homogenous competition in valve industry – the high-end product of iron ore was more intense due to low market capacity. Under such circumstance, ball valve, gate valve and globe valve which have high application face with the same situation. 

 

Seamless steel tube is mainly used for oil, gas, power, coal and other energy industries. Those industries are also the largest users of valves. The revulsion on oil and gas market caused disadvantageous influences on seamless steel tube manufacturers. The tube is mainly used as delivery pipe for oil and gas. Those are superior products having high technical content and additional value. But, revulsion of market situation brings obstacles to manufacturers whose gate valve and ball valves are widely applied in oil and gas.