Industry Information

Looking at the demand trend of the welded pipe market together

Listed companies in China’s welded pipe industry include: Zhejiang Jinzhou Pipeline Technology Co., Ltd., Jiangsu Yulong Steel Pipe Co., Ltd., the Pearl River Oil and Gas Steel Pipe Holding Co., Ltd. (subordinate to Panyu the Pearl River Steel Pipe Co., Ltd.), etc. They have all achieved good performance, in contrast to the general decline in industry efficiency, and they have made substantial profits. These enterprises have large diameter submerged arc welded pipe and medium and small diameter high-frequency straight seam resistance welded pipe, and Dongguan straightening machine. Their more profitable products include ordinary products, which are eye-catching.

Due to factors such as the brand and quality of listed companies, the market for non oil and gas pipeline ordinary grade welded pipes is also very good and has high benefits. The production lines of large-diameter longitudinal submerged arc welded pipe, large-diameter spiral submerged arc welded pipe and large-diameter high-frequency longitudinal resistance welded pipe have low capacity utilization rate and poor efficiency, because thousands of people are crowding “single wooden bridge” to be oil and gas pipelines. However, the pipeline market in the petroleum industry is basically monopolized by internal enterprises, and the remaining orders that are difficult to produce, have small specifications, have multiple specifications and small batches, or cannot be supplied in a timely manner by internal enterprises are subject to competition from external enterprises. Therefore, the pipeline market is fiercely competitive, with overcapacity and low price competition, presenting high-level equipment and high-end products that are inversely linked to their prices, belonging to unprofitable or loss making operations. The natural gas pipeline business of CNPC may be under national management, independent of CNPC Group. Dongguan Splitting Machine will help to streamline natural gas prices and establish a fair competition mechanism, breaking industry monopolies.

Although the technical content of small and medium-sized diameter welded pipes such as galvanized steel pipes is not high, due to meeting the strong demand of China’s current urbanization market, production and sales are thriving, and profits are considerable.

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