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Suggestions on promoting the development of China's stainless steel pipe export trade

The development level of stainless steel pipes is closely related to economic development. In theory, the economic growth rate is 1%, which drives the consumption of stainless steel pipes to increase by 1%-1.5%.


Although China is already the world's largest stainless steel pipe manufacturer and the largest exporter of stainless steel pipes, from the low production level, single variety, heavily dependent on imports, to the full range, product quality is significantly improved, while gradually achieving domestic self-sufficiency of stainless steel pipe demand To achieve the expansion of exports, but in terms of exports, China is still only a major exporter of stainless steel pipes, and there is still a big gap from the goal of exporting strong stainless steel pipes.


Since 2010, the problem of overcapacity in China's stainless steel pipes has always existed, and China has also changed from a net importer of stainless steel pipes to a net exporter. Although the export of stainless steel pipes faces some difficult problems in the short term, in the long run, the export of stainless steel products has broad prospects for development. We should continue to improve the competitiveness of the domestic stainless steel pipe industry and learn more about the international market. The entire stainless steel pipe industry is maturing.


The theory of scale economy is one of the basic theories of economics and an important category of modern enterprise theory research. The theory of scale economy refers to the decrease in the unit cost of an enterprise when its absolute quantity increases in a certain period of time. That is, the expansion of the scale of operations can reduce the average cost and thus the profit level. The key to the scale effect depends on the level of industrial concentration. The high concentration of industry can bring about scale effect, which can reduce the production cost of enterprises, make export products have the right to speak in pricing, and help to promote the growth of exports. From the development trend of the international stainless steel pipe industry in recent years, it can be seen that the international stainless steel giants have expanded their scale through mergers and acquisitions, and the scale and intensification of international stainless steel pipe enterprises have become a trend.


In Asia, South Korea's Posco Steel acquired a 90% stake in Vietnam's Asian Stainless Steel Pipe Company in 2009, the only cold-rolled stainless steel pipe manufacturer in Vietnam. In 2011, South Korea's Posco again acquired the Thai stainless steel company, the largest stainless steel pipe manufacturer in Southeast Asia. Through mergers and acquisitions, Posco has established its position in the Southeast Asian market. In Europe, in 2012, Outokumpu acquired the stainless steel pipe company owned by ThyssenKrupp and created the world's largest stainless steel company. The mergers and acquisitions between these stainless steel companies fully demonstrate that the intensification and scale of enterprises have great benefits in reducing the procurement cost of raw materials, improving production efficiency and improving product quality. In theory, the merger and reorganization between two enterprises can occupy the market and expand the scale of the enterprise faster than the new investment. Increasing the concentration of the entire industry is a long-term development plan for the national steel industry, and national policies have begun to limit the construction of steel production projects.


Therefore, in the future, China's stainless steel pipe enterprises will also accelerate mergers and acquisitions between enterprises to achieve economies of scale and reduce production costs. Increase the price competitiveness of export products. Taigang Holding Tianjin Stainless Steel Co., Ltd., Baosteel Restructuring Desheng Nickel Industry established Baosteel Desheng to launch the first shot for China's stainless steel industry to promote joint restructuring and resource integration. I believe that in the near future, more and more stainless steel enterprises will join the ranks of mergers and acquisitions.




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