In the current metal pipe industry, small diameter, low pressure, mainly to carbon steel pipe fittings, mainly used in the metal pipe without special technical requirements of the operating environment, known as the general metal pipe; and large diameter, medium High pressure, the use of high-grade steel, alloy steel or special metal material manufacturing, its application of the industry has strong professional and targeted pipe fittings, known as the special steel pipe fitting industrys or high-end pipe fitting industrys. From the industrial metal pipe industry competition, the domestic production of metal pipe business is very large, but most of the smaller, mainly engaged in general metal pipe manufacturing, the real can produce high-quality, high-tech high-end metal pipe business is less. In the low-end pipe market, there is fierce competition. The supply and demand of high-end products such as large-caliber, composite materials and high-performance products are insufficient. The industry is in the low-end market and the high-end market is not perfect.
China’s industrial metal pipe industry competition has the following characteristics:
① enterprises generally smaller scale. China’s annual production capacity of pipe fittings enterprises generally 1,000 tons in the following, most companies use small workshops, small factories type of production. On the one hand, the pattern of market demand caused by the other hand, most of the pipe fittings for private enterprises, by the capital, talent, market development and other factors, do not have sustainable development.
② enterprises lack the core technology competitiveness. The process of cutting, heat treatment, welding and anticorrosion of ordinary pipe production process is not high. The production process mainly depends on manual operation, basically do not use modern automatic control equipment, and do not have the technical innovation and product development ability.
③ product structure is irrational. China’s industrial metal pipe production capacity is mainly concentrated in the small and medium-diameter pipe fittings or carbon steel pipe fittings field, large diameter or high-end pipe production capacity is insufficient. China’s industrial metal pipe fittings enterprises from the product specifications, the main production of small-caliber tube; from the product material division, the main production of carbon steel pipe fittings.
The downstream market demand for large diameter products and high-performance alloy steel, stainless steel and new composite materials generally inadequate supply of the industry need to develop a number of carbon steel, stainless steel, alloy steel and other new composite pipe production capacity of enterprises, To solve the unreasonable product mix situation.
④ affected by the downstream industry fluctuations. The downstream industries of the industrial metal pipe industry are the lifeline industries of petrochemical, shipbuilding and electric power industries. These industries have high market concentration and some enterprises are monopolized or semi-monopolized, and can rely on huge demand to form buyer monopolies. The industrial metal pipe industry, market concentration is low, a single enterprise market negotiation capacity is limited, product sales by the downstream industry as a whole the greater impact of volatility.
Industrial metal pipe fittings mainly for supporting the use of downstream industries, industry enterprises are mainly distributed in the petrochemical, shipping, electricity and other downstream industries concentrated in the eastern region. The rapid development of the downstream industry will drive large diameter, composite materials, high performance and high reliability of the strong demand for pipe fittings, especially with China’s urbanization infrastructure to accelerate the development of the central and western regions, oil and gas field development, the world ship order transfer, Resource exploration, construction of nuclear power plants and other construction projects, will have been in short supply the market there is a greater gap between supply and demand. Therefore, large-diameter, composite materials, high-performance and high reliability of the pipe fittings production enterprises will gather in China’s industrial metal pipe the most competitive areas.
Industrial metal fittings industry regional agglomeration characteristics are obvious, mainly in the east and north China, the main industrial agglomeration area has four: Jiangsu Jiangyin, Yangzhou area; Hebei Cangzhou, Langfang area; Liaoning Yingkou, Fuxin area; Zhejiang Wenzhou area.
The following are the number of competition from the industry, industry growth rate, exit barriers, competition analysis of the existing competition in the enterprise. Analysis of available, the industry is in the mature stage, the quality of the industry as a whole uneven, most enterprises focus on low-end products, price war, the existing business competition.
Table 2: Competitive analysis of existing metal pipe fittings
Number of competitors
Numerous enterprise data, mainly small and medium-sized enterprises, the total number of more than 4000 enterprises, the annual income of more than 20 million yuan about 200 enterprises, listed companies only one.
Competitors are numerous
Industry growth rate
In recent years, industry production and sales are rising trend year by year, average annual growth rate at about 15%, but growth downward.
Industry growth rate is higher, but growth showed a trend of decline
Industrial metal pipe fitting belongs to the manufacturing industry, the fixed cost is greater.
Large exit barriers
The degree of homogeneity
Domestic industrial metal pipe fittings production enterprise on a smaller scale, most companies focus on low-end products, high-end products focused on leading enterprises, high-end products created value accounts for more than 60% of the whole industry.
Low degree of product homogeneity
Low-end products market competition is given priority to with price war; High-end product market competition is given priority to with technology and brand.
Higher competition level
With the international industrial gradient transfer, manufacturing has been to China, India and other developing countries. Therefore, foreign companies on the domestic industrial metal pipe fittings business a smaller potential threat. At the same time, China’s industrial metal pipe industry has matured, new entrants into the cost of a higher threshold. As a result, the potential threat to China’s industrial metal pipe fittings is small. Industrial metal pipe fittings is an essential part of industrial pipe, there is no substitute products; but with the downstream industry of industrial metal pipe product quality, material and other requirements, there are high-end products in the low-end products instead.
Source: Zhejiang Yaang Pipe Industry Co., Limited (www.yaang.com)