Depth adjustment of steel pipe industry

With the continuous reform of the supply side structure, the metal products industry related to the steel industry, including the steel pipe industry, has been brewing a good situation recently, but the real turning point of the related industry has not yet arrived. According to statistics, after nearly ten years of development, China's steel pipe industry has been continuously optimized and upgraded in product structure, quality level, technical equipment and other aspects. It has become a real world steel pipe manufacturing country, and is making great strides forward in the world steel pipe industry. However, the stage contradiction and structural contradiction in the development of China's steel tube industry have become the "bottleneck" hindering the sustained, healthy and stable development of the steel tube industry. The deep adjustment of steel pipe industry is still in progress.






At present, the development of overcapacity in China's steel pipe industry, the decline of enterprise profits, cost pressure, financial risk rise and environmental constraints are gradually increasing. The deep-seated contradictions and structural contradictions are increasingly prominent.


It is reported that during the 12th Five Year Plan period, China's steel pipe production increased from 56.73 million tons to 98.27 million tons, with an average annual growth of 11.61%. Among them, the output of seamless steel pipe increased from 24.17 million tons to 28.58 million tons, with an average annual growth of 3.40%. The output of welded steel pipe increased from 32.56 million tons to 69.7 million tons, with an average annual growth of 16.45%. The market share of steel pipe is over 99.0%, of which seamless steel pipe is 99.23% and welded steel pipe is 99.71%.


China's steel pipe industry provides important raw material guarantee for the rapid development of oil and gas exploration, electric power, marine engineering, shipbuilding, construction, machinery, automobile and national economy. In 2015, China's steel pipe production was 98.27 million tons, up 11% year on year. China's steel pipe production accounts for 58.5% of the world's total steel pipe production. Among them, the global seamless steel pipe production in 2015 was 41.44 million tons, down 14.6% year on year. China's seamless steel pipe production is 28.58 million tons, down 9% year on year, accounting for 69% of the world's seamless steel pipe production. In 2015, the global output of welded steel pipes was 126.7 million tons, an increase of 6%. China's production is about 69.7 million tons, an increase of 21%. China's welded steel pipe production accounts for 55% of the world's welded steel pipe production.


However, as a big country of steel pipe industry, China's steel pipe industry is a short board for optimization and upgrading, and the industrial structure conflicts are prominent. Some analysts pointed out that there are the following problems in China's steel pipe industry: first, the market demand is declining, and the contradiction of overcapacity is prominent; second, the industry efficiency is declining seriously, especially in seamless steel pipe production enterprises. Third, unfair market conditions have intensified vicious competition. Fourth, the ability of independent innovation is not strong; fifth, the international competitiveness of the industry needs to be further enhanced.

With the supply side structural reform and the promotion of land-based measures such as the 13th five year plan, the in-depth adjustment of the steel pipe industry has been gradually launched. It is reported that during the 13th Five Year Plan period, the output of steel pipe industry is controlled below 100 million tons, including 28 million tons of seamless steel pipe and 72 million tons of welded pipe less than the 13th Five Year Plan period. During the "year", 3-5 group companies with internationally competitive steel pipes were formed by promoting M & A; the main energy and environmental indicators met the national requirements; by 2020, the green development requirements of the steel industry, industrial dust, industrial wastewater discharge standards, comprehensive utilization of industrial solid waste and safe disposal rate of hazardous waste were 100%; the stability level of product quality and reliability was greatly improved It has realized the effective supply of many key pipeline varieties. China's iron and steel industry is developing steadily from large to strong.

Pressure on quality and efficiency


With the reform of the supply side structure and the deep integration of the industry, listed companies in the industry are also facing the problems of business adjustment, quality improvement and efficiency improvement. According to the statistics of financial and accounting big data terminal, in general, many A-share listed companies in the steel industry have more steel pipe related businesses. With the reform of the steel industry, their steel pipe business has been further optimized and improved. Some steel pipe products are mainly used as the main camp. The adjustment pressure faced by the receiving company is obvious.


Taking Yulong as an example, the data shows that the company is a comprehensive manufacturer specializing in the production of oil, natural gas, water transportation and large steel structure pipes, and also one of the largest private welded steel pipe manufacturers in China. Its main business is the production of welded steel pipe, sales. According to the company's announcement, in the first half of 2017, the domestic steel pipe industry is still in the production cycle. Product homogeneity is very competitive, and profit margin is further squeezed. The price of upstream raw materials remains in a high price range. The rising frequency is relatively high, which leads to the scrap of steel pipe product price and more serious damage to orders. Downstream demand did not pick up significantly, and the overall operation of the industry was weak.


In the first half of 2017, the domestic steel pipe market experienced negative growth. The total output of welded steel pipe is 32.215 million tons, down 6.74% year on year. In the overseas market, the export price advantage is gradually weakened due to the rapid rise of domestic steel pipe product price. In addition, the anti-dumping of China's steel pipes in 2017 is still more severe. In the first half of 2009, the export volume of steel pipes decreased. In the first half of 2017, the total export volume of steel pipes was 4.1528 million tons, down 7.76% year on year. The average export price was US $923.21/ton, up 8.63% year on year. In the face of severe market environment, Yulong Co., Ltd. merged and divided some traditional pipeline assets and natural gas assets in 2016. On the one hand, it optimizes and adjusts the company's asset liability structure and main business, on the other hand, it increases the company's capital reserve.


Similarly, as a national high-tech enterprise specializing in the research, production and sales of welded steel pipe products, Jinzhou pipeline is one of China's large-scale suppliers of galvanized steel pipe, spiral welded pipe and steel plastic composite pipe. Also under pressure from the industry. According to the company's announcement, in the first half of 2017, the domestic oil and gas pipeline construction is still in a period of slowdown, the oil and gas pipeline project is still underdeveloped, the market demand is lower than expected, and the pipeline industry is still facing greater pressure and challenges.