Time flies, turning into 2019 has been January. Under the guidance of the domestic iron and steel industry's capacity reduction and supply-side reform policies, the five-year task of dissolving 30 million tonnes of excess capacity has been completed ahead of schedule in three years. And, according to the National Bureau of Statistics, which released the financial data of industrial enterprises, from January to November 2018, the total profit of industrial enterprises above national scale was 6116.88 billion yuan, an increase of 11.8% year-on-year. Under the environment of industry capacity removal, profit return, supply and demand balance, how did the steel pipe industry perform in 2018?What opportunities and challenges will be ushered in 2019?
Comparing the year-on-year value of welded steel pipe production in the previous years, it can be seen that after entering the negative value year-on-year from 2016, the period of 2017 showed a shock pattern. However, after entering 2018, the oscillation pattern changed significantly, and the year-on-year growth rate of welded steel pipe production accelerated, reaching a peak of 20.9%. Although the year-on-year rate was only 4% in November, the overall positive growth in 2018 was outstanding in terms of production growth.
Overall, domestic seamless steel pipe and welded steel pipe production in 2018 showed different degrees of growth year-on-year.
Future opportunities and challenges coexist:
The steel pipe industry as a whole in 2018 showed production growth, increased imports, declining exports and price shocks. With the release of new domestic steel pipe production capacity is obvious, the later industry competition is bound to intensify; with the help of going out, the domestic oil and gas pipe, pipeline pipe market is still or to maintain a stable demand; and domestic infrastructure is in a slow rebound stage, the later demand for galvanised pipe, building structure pipe, engineering machinery pipe, etc. or a downward trend. From the point of view of the export situation, in recent years, the domestic steel exports have been hindered significantly, is expected to continue in the market, coupled with the rise in domestic steel prices, the decline in export profits, the future of steel exports is not optimistic. Price, as the end product of the industrial chain, in 2019, the price of steel pipe is still difficult to get rid of the "passive" role, mainly by the impact of the steel market environment.