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The four key characteristics of the current steel pipe market

2008-01-25View Original

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Four key characteristics of the current steel pipe market: 1. Market demand is higher than expected: This year, the production of seamless steel pipes is estimated to be around 6.6–6.7 million tons, while that of welded steel pipes will reach 9 million tons. The proportion of steel pipes in total output exceeds 7%, resulting in a stable balance between supply and demand; prices remain stable as well, with the price ratios for major steel products being within reasonable ranges. 2. Market share continues to rise: From January to July this year, the market share of domestic products was 92.9%, an increase of 2.2% on a year-on-year basis. 3. The export situation is optimistic, while the volume of imported pipes has declined: From January to July, the country imported 664,000 tons of steel pipes, a decrease of 26.5% on a year-on-year basis. 708,000 tons of steel pipes were exported; among these, the export of seamless steel pipes increased by 25.1% year-on-year, while that of welded steel pipes increased by 218.9%. The steel pipe industry has become an export-oriented sector, with export volumes reaching 48,000 tons. 4. New developments in technological upgrades: The technical level and equipment in the steel pipe industry have now reached a relatively high standard. In the development of the steel pipe industry, fluctuations in the prices of upstream raw materials are becoming more severe and their sourcing is becoming more difficult. Despite high prices, there remains a market gap of around 500,000 tons; companies that rely on imported raw materials must intensify efforts to adjust their product portfolios in order to survive and thrive.

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