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Steel tube industry development face five big challenges

    First the repeated investment in construction of excess capacity. In the past two years, China’s steel production unit not only has much, and the equipment level is high, especially seamless steel tube units have more than 10 line and put into production, which has 10 units rolling line. In June, according to the maximum yield of 6.15 million tons/month, our actual capacity in steel tube has reached 74 million tons. In addition, so far some of the steel pipe production enterprise also has construction or proposed steel pipe project. This will lead to the situation of steel tube overcapacity in recent years further expand, not only increases the risk of investment, increasing competition in the market, also interfere with steel tube the stability of the price. This is the main reasons why the price of our country steel pipe is high in the long run.
    Second, it is the ore and some fuel prices continue to rise sharply, further improve the steel pipe manufacturing cost, enterprise profits continue to fell significantly. From January to August, China imported iron ore cif for an average of $164.36 / tons, up 37.50% year-on-year. Domestic iron ore, coking coal, scrap steel, steel channel, strip steel, and other large sums of raw material prices also rose sharply. At the same time, domestic market overall present a supply situation. The price of steel pipe no bigger improve, and it is only less than 5% rise early this year. The high cost of squeeze enterprise benefit continue to fell significantly. Steel tube industry’s main sales profit margins is around 1% according to estimation only, which dropped to historical lows, and less than the average steel industry sales profit margins.
    Third, international trade protection intensified. Since 2005, we become net steel pipe exporter, and the export volume sharply increase year by year, has caused the international counterparts’ concern. In 2009, since the survey of Europe and the United States “double reverse”, global trade protectionism shade is strong, in addition to the Europe and America, Russia, India, Brazil, Mexico, Canada, Argentina and other countries have also take sanctions to China steel tube export enterprise, or collection of high antidumping, anti-subsidy, or on anti-dumping investigation, and so on. This will further restricting our steel tube products of export. To this, the experts suggest steel tube enterprise should control exports, transfer export market for long-term and stable development, not just for the immediate interests.
    Forth, a few high-end products can’t satisfy the demand of users. Because we can’t product, or quality is not stable, or reason such as the shortage, some high-end steel tube of varieties, specifications and special quality requirements had to import from foreign by a high price. From January to August, domestic seamless tube and boiler tube for oil imports volume were 54100 tons and 54000 tons, making up 30.84% of total imports of seamless steel tube and 30.78%. The expert points out, the development of the oil tube should be tightly concentrative on the higher resistance to high H2S and resistance to include CO2 corrosion duplex steel, nickel-based alloy and so on oil Wells with high tube, and connection strength and high seal performance special thread joint oil well tube end products. The development of the high pressure boiler tube, should be aimed at supercritical and ultra supercritical thermal power units and the construction of nuclear power units demand, the development of T/P series high temperature resistant alloy steel tube, stainless steel tube and nickel-based alloy steel tube.
    Fifth, backward productivity is a difficult task. China steel tube industry production technical equipment of both the world’s top level of seamless steel tube and the welded pipe production unit, and have increased perforation + cold drawn welded pipe units and hot galvanizing line, etc. The latter production process involving reclamation, waste water treatment and emission. These units most equipment level is very low, and environmental protection facilities is not perfect. Preliminary statistics shows that the perforation and cold drawn units take of around 60% in China seamless steel tube of the total number of units, yield about 20% , galvanized units also has certain proportion. A part of these units belongs to modification and elimination production capacity.

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