Steel pipe industry: 2014 overall warming
In 2013, the demand growth of the steel pipe industry was lower than expected, while the growth rate of production remained unchanged. The domestic market was still oversupply; the price of steel pipes fluctuated at a low level, and the prices of raw materials remained at a high level. Enterprises still have not shaken off the severe operating situation of low profits or losses. However, industry insiders said that the overall market environment of the steel pipe industry in 2014 is better than that in 2013, and the oil and gas pipeline will continue to prosper. The steel pipe market will continue to grow, and the oversupply situation will ease.
In 2014, the environment of the steel pipe industry improved, and the oil and gas pipeline continued.
"(2014) The development environment of the steel pipe industry and the oversupply of the market will be alleviated, but there will be no fundamental changes." Zhong Xidi, Secretary General of the Steel Structure Branch of China Steel Structure Association, made the above remarks on the 2014 steel pipe industry.
It is reported that China's steel pipe production capacity exceeds 100 million tons. Since 2012, the utilization rate of steel pipe capacity has only been 75.95%, which is close to or exceeds the lower limit, and the production capacity has become excessive.
Zhong Xidi further explained that from the current situation, the domestic and international economy will grow steadily, and the downstream management industry will continue to maintain rapid development. In addition, some stable growth policies and measures that have been introduced in 2013 will be further developed in 2014, and demand growth will continue. The steel pipe market will continue to grow, and the overall market environment of the steel pipe industry is better than that of 2013.
As far as steel pipe varieties are concerned, the industry believes that the demand for energy in the oil and gas pipelines will continue to prosper and drive the overall demand for steel pipes.
Zhong Xidi said that the demand for oil and gas pipelines still dominates the energy demand management. With the further expansion of global oil and gas exploration investment, the demand for oil and gas pipelines continues to grow, such as oil well pipes and pipelines. The demand for energy industries such as the delivery of fluid pipes continues to drive the overall demand for steel pipes."
According to the forecast report of the Metallurgical Industry Planning Institute, the actual consumption of steel in China in 2014 was 715 million tons, up 3.2% year-on-year; the energy industry consumption was 32 million tons, second only to the automobile industry of 50.2 million tons, up 3.2% year-on-year.
Xu Weidong, deputy general manager and director of Yulong Co., Ltd. (601028.SH), also told the Great Wisdom News Agency that the total demand for oil and gas pipelines during the 12th Five-Year Plan period is abundant, and there is confidence in 2014 and 2015; 2013-2015 More than 40,000 kilometers have not been completed, and it is expected to drive more than 10 million tons of oil and gas pipelines. In 2014 and 2015, market demand will be accelerated.
A brokerage analyst who has long tracked oil and gas pipelines told Dazhi News Agency that the oil and gas pipeline industry will have a good climate of 3-5 years from 2012 on the oil and gas pipeline network and urbanization construction.
In the A-share oil and gas pipeline sector, the three leading listed companies' performance in the third quarter of 2013 was full, and the net profit in the first three quarters all exceeded 20%. Yulong shares (601028.SH), Jiuli special materials (002318.SZ), Jinzhou Pipeline (002443.SZ) total revenue for the first three quarters of this year was 6.627 billion yuan, an increase of 6.84% over the same period, the combined net profit was 360 million yuan. , an increase of 26.7% over the same period.
In 2013, the capacity utilization rate of steel pipes was close to the lower limit, and the demand for product upgrade adjustment was strong.
The steel pipe industry in 2013 is still a difficult year: overcapacity, high cost, low efficiency, increased trade friction and urgent product upgrades are the key words of the 2013 steel pipe industry.
Zhong Xidi said that it is expected that the output of steel pipes will exceed 80 million tons in 2013. However, the current capacity utilization rate is close to or exceeds the lower limit, showing overcapacity, but the export steel pipe grade is in urgent need of further adjustment and optimization.
"In the first 10 months of 2013, although the export of steel pipes showed an increase in price and price, the average export price was still much lower than the average import price. The average import price of steel pipes was 3.31 times the average export price." Zhong Xidi said. It is reported that in January-October 2013, the export of steel pipes was 7,546,600 tons, a net increase of 146,000 tons, an increase of 1.97%; the import volume of steel pipes was 356,600 tons, down 0.7 million tons, a decrease of 1.96%; but the average export price of steel pipes was 1203. USD/ton, the average import price is 3,986 US dollars / ton, and the average import price is 3.31 times the average export price.
Gong Hongliang, executive chairman of the Shanghai Pipe Industry Association, publicly stated that in 2012, China exported 6 million tons of steel pipes, mostly low- to medium-grade products, and the demand for upgrading and adjusting steel pipe products was strong.
"At present, the supply of low-end products in the industry is excessive, but the supply and demand of high-end products is basically stable." Xu Weidong said.
It is reported that the output of steel pipes in the first 10 months of 2013 was 68.11 million tons, a net increase of 6.582 million tons, up 10.66% year-on-year; the apparent consumption of steel pipes was 61.11 million tons, a net increase of 6.42 million tons, an increase of 11.74%.
Domestic listed companies involving steel pipes mainly include Yulong (601028.SH) and Jinzhou Pipeline (002443.SZ); Hong Kong stock companies mainly include Shengli Pipeline (01080.HK) and Zhujiang Steel Pipe (01938.HK).