How to make Galvanized Pipe market to pick up
China's first Galvanized Pipe province of Hebei Province, the proportion of discontinued 70% to 80%. By Galvanized Pipe plant supply significantly reduced the impact of Galvanized Pipe market during the meeting can be sold limited resources, traders selling pressure is not, coupled with this Galvanized Pipe offer also shocks higher.
As the Galvanized Pipe overcapacity, Galvanized Pipe industry production and management in the basic low-profit state. Galvanized Pipe industry in the first three quarters of the sales profit margin is 0.71%, basically in a low profit or zero profit state, so the company will significantly reduce the capacity to expand production, investment more rational, more and more steel traders concentrated in Transformation and upgrading, to enhance the competitiveness of the project up. There are some enterprises in the state of discontinued or semi-shutdown, some advantages of enterprises and disadvantaged enterprises have begun to split between. Therefore, through the market mechanism is not forced to force the enterprise out of the market environment gradually formed.
At the same time, the gradual improvement of the relevant measures to control the Galvanized Pipe production to play a positive role. The Ministry of Land and Resources and the Ministry of Environmental Protection have intensified enforcement efforts, especially the implementation of the newly revised Environmental Protection Law, which can effectively promote the internalization of environmental external costs, prompting a part of environmentally friendly enterprises to withdraw from the market or increase their cost The In addition, the state to curb new production capacity measures gradually appear. The first three quarters of this year, Galvanized Pipe industry, fixed asset investment has dropped by 5% year on year, while the investment direction is basically used for continued construction projects, mainly some structural adjustment, energy saving and product deep processing projects.
When it comes to curbing the impact of Galvanized Pipe production capacity, some steel traders said that this is a positive phenomenon for the Galvanized Pipe market, at least to enhance the confidence of Galvanized Pipe trade operators, only Galvanized Pipe plant production, limited production , Control the release of production capacity, the domestic steel market will have the possibility of warmer.
The state to curb Galvanized Pipe production capacity measures will bring a positive situation, this view is not fully agree with the steel trade. Talked about in recent years, the state to increase efforts to curb the Galvanized Pipe production capacity of the Galvanized Pipe next year, the impact of most of the steel trade on the sidelines, said the country is to increase efforts on the one hand, and pull Galvanized Pipe demand still Galvanized Pipe market is an important factor in turn.
"An important factor is that the market demand for Galvanized Pipes is declining," says a trader, "the price of Galvanized Pipe has been rising."
Throughout the domestic market, China has changed from the development direction of heavy industry to information technology as the core of the development trend, social infrastructure construction tends to improve, especially in the more developed one, second-tier cities is more obvious, Tube demand is more unfavorable. So for the Galvanized Pipe market to pick up, Galvanized Pipe prices rise, the demand for pulling Galvanized Pipe can not be ignored power.
Therefore, as a business of Galvanized Pipe trade for 14 years of steel trade, said the Galvanized Pipe market to improve the premise to be established in the Galvanized Pipe needs to be driven on the basis of the effective implementation of containment galvanized Tube production capacity to release measures to help in order to effectively support the Galvanized Pipe prices, so that Galvanized Pipe market to pick up.