The challenges and opportunities faced by steel pipe manufacturers

In 2016, the opening year, the 13th five-year plan was officially initiated. With the new policy, the economy in China has been rejuvenated. However, in such a meaningful year, the development of the steel pipe industry is not very smooth. New problems have emerged, which is a challenge as well as an opportunity for steel pipe manufacturers in the industry.

Steel pipe is the indispensable material in many industries such as water or gas transportation and the production of machinery parts. As the existing of these industries, the demands for steel pipes are growing both at home and abroad. In the past few years, the benefits owned by steel pipe suppliers are quite well whether export or domestic supply even lacking of goods. While the situation has changed, some problems have appeared with less smooth.

Welded steel pipe has become major part of steel products for more and more steel pipe manufacturers. It can be divided into square steel pipe and round steel pipe. The cost of this kind of steel pipe is lower than that of seamless steel pipe. However, what about the pipe quality? Actually, in recent years, as the development of technology, welded steel pipe attractive in price and quality can meet the criteria of many industries. On account of its high value, many steel pipe manufacturers invest more money in its production. While, its price is not always stable that means we need to attach more importance to be in line with the pipe market. So what are the fluctuation factors for the steel pipe price? Although there has been a significant decrease recently, zinc-plated steel tubes are also a substantial part of the sale volume, with a large proportion of the expert. What is the problem in the foreign trade of square steel pipe?

Due to the large export of Chinese steel pipe, it has resulted in low efficiency, loss and even bankruptcy of foreign manufacturers and workers. Many countries, including the European Union, have taken anti-dumping measures against China. That includes higher taxes on export goods which is a blow to the export business of domestic steel pipe manufacturers. However, despite the adverse factors, the demand for steel pipes in foreign markets is still huge. So, it is also a way to develop. The current consolidation policies in the Chinese industry have made a change in the steel pipe market. For example, in terms of environmental protection, there is a higher demand for manufacturers, which will also affect steel pipe price. Therefore, steel pipe manufacturers need to bear lots of factors in their mind.