Elites gathered in the capital to participate in the industry event. On November 24, the 19th China Steel Industry Chain Market Summit and the “2024 Steel Pipe Industry Chain Development Summit Forum” were successfully held at the Beijing Jiuhua Villa International Convention and Exhibition Center. The forum was hosted by Shandong Ruixiang Steel Group and co-sponsored by Tianjin Youfa Steel Pipe Group Co., Ltd. and Zhengda Pipe Manufacturing Group. Sun Yongxi, chief expert of the Shanghai Steel Pipe Industry Association and chairman of the expert committee, attended the meeting and delivered a wonderful speech entitled “Analysis of high-quality development strategies after mass production of my country’s steel pipe industry reaches its peak”.
Sun Yongxi, Chairman of the Expert Committee of Shanghai Steel Pipe Industry Association
Steel pipe industry output reaches peak
Director Sun said that the total demand for steel has entered a plateau period, and my country’s crude steel output of nearly 1.1 billion tons in 2020 can be regarded as the peak watershed. After the production of steel pipes reached the highest level of 98.27 million tons in 2015, although new production capacity is still being added, the capacity utilization rate has declined. Now the northern pipe factories are large but not strong, and the southern pipe factories are sophisticated but not strong. The production capacity of advanced production lines squeezes out the backward production lines. production capacity. In the future, China’s steel pipe consumption will enter a long-term stock development stage. The industry is facing the test of increasing repeated overcapacity. The next two years will be the trend of market competition.
Incremental Economic Analysis of Steel Pipe Industry
Director Sun believes that the demand for ordinary steel pipes and stainless steel pipes is resilient. This year, industrial construction, oil, gas, water conservancy and other pipeline network construction, steel structure construction and export foreign trade have boosted the demand for steel pipes. The demand for pipes at home and abroad has performed better than last year. In the future, China still has considerable room to implement expansionary fiscal and monetary policies to make up for the “lack of aggregate demand.” Director Sun said that in terms of product categories, the first one trillion special funds will be released, and the start of new infrastructure projects next year will become an important focus. There will be a wave of welded steel pipes for drainage, heating, and gas municipal construction (transmission). Quotes. Second, despite the rapid development of renewable energy, total consumption only accounts for 3.7%, while oil, gas and coal account for 85%. Seamless steel pipes still mainly serve the oil and gas field. Stainless steel pipes can replace 40% of mid- to high-end carbon steel pipes and are one of the irreplaceable, recyclable green materials that can achieve new urbanization and new industrialization.
Product management strategy for steel pipe industry
Director Sun proposed that a more long-term and effective solution to the current situation of the steel pipe industry is to focus on innovative transformation of steel pipe manufacturing. The first is to segment the product market around the ten key industrial areas of the manufacturing power strategy; the second is to combine AI + steel pipe information technology to create an unmanned workshop to save labor and improve efficiency. Management companies should develop product routes that meet the characteristics of the company based on the upgrading and changing needs of the downstream market to achieve “differentiation of high-end products, stabilization of mid-range products, and normalization of low-end products.” It is recommended that domestic and foreign trade products account for 75%:25% , high-end and low-end products account for 20%: 80%.
Finally, Director Sun summarized it in one sentence: Demand is changing, the market is changing, the industry is promoting change, and high-quality development will last forever after mass production reaches its peak. It is advocated that management companies should seize the opportunities in the period of conversion of old and new driving forces and usher in a new era of high-quality and reduced development of the industry.
Post time: Nov-28-2023