Time flies, and it has been January 2019. Under the guidance of policies such as the reduction of capacity in the domestic steel industry and supply-side reforms, the five-year task of resolving 30 million tons of excess capacity has been completed ahead of schedule within three years. In addition, according to the financial data of industrial enterprises released by the National Bureau of Statistics, from January to November 2018, the total profits of industrial enterprises above designated size across the country reached 6116.88 billion yuan, a year-on-year increase of 11.8%. In the context of industry capacity reduction, return of profits, and balance of supply and demand, how will the steel pipe industry perform in 2018? What opportunities and challenges will be ushered in in 2019?

　　Comparing the year-on-year value of welded steel pipe production in previous years, it can be seen that after entering a negative value year-on-year in 2016, there was a turbulent pattern during 2017. However, after entering 2018, the shock pattern has changed significantly, and the year-on-year growth rate of welded steel pipe production has accelerated, reaching a peak of 20.9%. Although November was only 4% year-on-year, the overall growth in 2018 was positive, with outstanding output growth.

　　On the whole, the domestic production of seamless steel pipes and welded steel pipes in 2018 showed different levels of growth year-on-year.

　　Future opportunities and challenges coexist:

　　In 2018, the steel pipe industry as a whole showed characteristics such as output growth, import increase, export decline, and price fluctuations. With the release of new domestic steel pipe production capacity, competition in the later industry is bound to intensify; with the help of going global, the domestic oil and gas pipe and line pipe market may still maintain stable demand; while the domestic infrastructure is in a stage of slow recovery. The demand for pipes and construction machinery pipes may show a downward trend. From the perspective of the export situation, domestic steel exports have been significantly blocked in recent years, and the market outlook is expected to continue. Coupled with the rise in domestic steel prices and the decline in export profits, the future situation of steel pipe exports is not optimistic. In terms of price, as a terminal product of the industrial chain, steel pipe prices are still difficult to get rid of the "passive" role in 2019, and are mainly affected by the overall environment of the steel market.