Steel or current production crisis ripples pump valve companies

Abstract: As a raw material of the pump and valve industry, steel is increasingly in need of transformation as environmental pressures gradually increase. The steel industry will face the danger of reducing production. The reduction in production will lead to an increase in steel prices in the short term, leading to higher costs in the pump and valve industry and short-term price fluctuations in the pump and valve industry. Therefore, the valve and valve industry will also be greatly affected.

In recent years, China's pump and valve industry has developed rapidly. Not only has the production level of pump valves been greatly improved, but its output has also increased substantially. However, what is more embarrassing is that small and medium-sized and private pump and valve companies have a relatively large growth rate in this process, and their proportion is relatively large. However, there are few large-scale pump and valve companies, and the domestic brand of pump and valve industry is not strong and the market competitiveness is poor. From the development status of the pump valve industry, the pump valve industry itself is also facing the risk of eliminating backward production capacity.

Under the influence of the financial crisis, the steel industry, construction, and upstream and downstream industries have experienced a sharp contraction in the market. This is undoubtedly a fatal blow to the pump and valve industry that depends on the development of these industries. Although the financial crisis has caused a negative impact on China's pump and valve industry to a certain extent, it has also exposed the internal defects of the pump and valve industry. The survival of the fittest under the market economy system has been greatly improved.

China's domestic market for pump valves is very broad, while the export market is slightly "thin."

According to the 2009 Investment Consultation Report on China's Pump Valves, Compressors, and Hydraulic and Pneumatic Machinery Industry, it shows that the “Twelfth Five-Year Plan” period is conducive to the development of new-type industrialization, which is resource-saving and environmentally friendly. The development of a type of society. Thanks to the financial crisis, due to the reduction of orders in China's pump industry and the increase in raw material prices, the industry began to play the role of the survival of the fittest, some backward production capacity was eliminated from the industry, so that the pump and valve industry can be "lightly mounted," and get a better space for development.