The reasons for the centralized development of steel pipe manufacturers

Industry clustering is a popular trend and many people may be wondering that: are competitors not competitors? Indeed, there is competition in the steel pipe industry, but the industry of steel pipe manufacturers who specialized in various welded steel pipes can achieve win-win results. Although many manufacturers hope that they can sell more steel tubes, pipe market is fixed, which may lead to some vicious competition. For example, individual manufacturers will reduce prices to attract more customers. However, centralized manufacturers can avoid this situation.

The centralized advantage of the steel tube manufacturer is the unification of pipe price. As it is a big market for steel pipes, there will be some institutions to keep the order of the market and there will be some regulations to maintain the market price. The price of hot dipped galvanized steel pipe is an example. The cost of producing this kind of steel pipe is not always the same. But if low-cost steel pipes are sold at low price, they will indirectly hurt the sales of high-cost steel pipes. Therefore, the unified price will keep the market price in a dynamic stable and it also promotes the manufacturers to seek ways to reduce the cost and promote the development of the industry.

Another advantage is in a complete variety. The types of steel pipes are multiple, but a manufacturer can not produce all the specifications of pipes. When facing customized steel pipes from different customers such as cold-formed hollow sections, steel pipe suppliers can transfer pipe products from other manufacturers to ensure the business cooperation. At the same time, the inter-industry transfer of pipes enables their relationship more closely. This cooperation mode between manufacturers will facilitate the smooth progress of foreign trade.

Besides, the centralized advantage of the steel tube manufacturer is also reflected in the solving problems with jointed efforts. Different problems in foreign trade can not be ignored. Taking the example of square steel pipe, its thickness of the zinc coating is standard and manufacturers should produce pipes according to the specifications. Once the specification is not included in the specification table, it is necessary to consult with the merchant to decide how to produce. It is worth noting that the specification excluded in size chart need to be explained in advance in case of delay customs clearance or it will prolong the formalities of customs declaration. Of course, with the development of science and technology, the price of steel tube will drop accordingly.