China's Stainless steel tube-pipe policy 2 - Stainless steel tube

China's Stainless steel tube-pipe policy 2 - Stainless steel tube

According to incomplete statistics, China's stainless steel pipe production capacity has reached 45 million tons. If we consider the projects currently under construction and proposed, by 2010, China's stainless steel pipe production capacity will probably exceed 55 million t / a, including stainless steel seamless steel pipe 25 million t / a, welded stainless steel pipe 30 million.

According to the medium and long-term development plan of China's steel industry, steel production should be controlled at 4.5-5.5 million blood, if the output of stainless steel pipe accounts for 7% of steel output (3% of stainless steel seamless steel pipe, 4% of welded stainless steel pipe), stainless steel pipe production.

It should be controlled at 3 150-38.5 million t/a. Even considering the annual export of 10 million tons of stainless steel pipes, the production capacity of stainless steel pipes far exceeds the actual demand. But despite this, some stainless steel pipe manufacturers are still making bigger and stronger (rather than doing it better or stronger), constantly increasing infrastructure investment, blindly expanding production scale, even those who originally Enterprises that have not produced stainless steel pipes have also joined the ranks of expanding the production scale of stainless steel pipes. 

This blind follow-up practice has a large investment risk. Moreover, some projects are still low-level redundant construction projects, which brings a series of problems such as uneven product quality, serious environmental pollution, and huge energy and resource consumption. 

If the current situation is not effectively curbed, it will inevitably lead to a serious imbalance between supply and demand, which is not conducive to the healthy development of the stainless steel pipe industry.

It should also be pointed out that with the continuous increase of the export volume of stainless steel pipes in China, the export destination Congress is restricted from the perspective of market protection, which leads to an increase in trade frictions and anti-dumping cases, for those with low technical content and low added value. The export of ordinary stainless steel pipes will have a great impact.

A careful analysis of the existing 45 million t / a stainless steel pipe capacity in China is not difficult to see, the backward production capacity accounts for a considerable proportion. In the case of stainless steel seamless pipes, the production capacity of perforated + cold drawn production and relatively backward automatic rolling mills exceeds 3 million t/a, accounting for about 20% of the production capacity of stainless steel seamless pipes. 

The backward production capacity of welded stainless steel pipes far exceeds this ratio. With the high-level new units being put into production one after another, the competition in the Stainless steel tube market is further intensified, and the production capacity of some backward units will be eliminated.