Price prediction and analyze about steel pipes in 2016

In 2015, the capacity of raw steel was 1.09 billion tons according to incomplete statistics, an increase of 1.73% year-on-year and the steel pipe for sale production was 811 million tons, a decrease of 2.3% compared with the same period last year while the consumption down 4.65% year-on-year. In addition, key steel business companies have loss nearly 99 billion yuan according to the estimation which have deteriorated the current recession of economy. We have to take some measures and policies to reduce the bad influence which can affect the process of industrialization and aggravate burdens for market development.

Local governments have taken responsive measurements because of the introduction of national policies. In recent times, rising steel and coal stock market give stimulus and promotion to traditional industrious. What’s more, it is important to phrase out of some industrious which will change production line and structures. The priority thing is reorganization and merger while the following inevitable situation is more and more unemployed people. There is a difficult situation that needs the county, government and steel pipe supplier to face that is asset reorganization, personnel arrangement and products reconstruction. Therefore, growing rapidly for steel pipe companies and market in short times is impossible at least for 2016 steel pipe market because of severe situation and turbulence.

Do you know the direction for steel pipe enterprises? Uneven distribution of steel products and the redundancy of private steel pipe factories with low efficiency, low-end equipment and poor-quality products are serious problem in current steel pipe market. In the future, we should give the first priority to reduce small private enterprises and increase the production capacity. The market will not make any progress if it still maintain the present production mode and left behind with the international market. As a Chinese B2B steel pipe company with good reputation, we should upgrade technology to achieve overarching development.

In brief, in 2016, the market will be mingled hope and fear for steel pipe industry. On one hand, the hope is the adjustment of production structure and form a new pattern for steel pipe; on the other hand, the fear is that the steel pipe industry has large production base and long sustained consumption time which will affect the advancement in a short time. Steel pipe prices should be within a reasonable range to maintain the market. The rebound ability is incapable to withstand the downward tendency and the mainstream of domestic market is still in depression.