Four Expecting Developments of China Valve Business in the Next Decade

No matter in China domestic or abroad, valve industry shows its strong development trend. In domestic, there are a lot of natural gas and the transformation of old industrial bases, network construction, residential projects, sewage treatment, irrigation and water conservancy and other projects will detonate the huge demand of the valve market. In abroad, followed as global recovery, valve demand will keep increasing tendency.

However, faced with such a large market, whether the valve manufacturer in China can compete with foreign are most concerned about by the valve manufacturer in China.

A whole industry chain

As a machinery and equipment, the production of valves like plug valve and globe valve is in the downstream of whole industry chain. Including the level of development of the iron and steel, sealing materials, and machining industry will have a major impact on the technical parameters of the valve. Steel strength, ductility, corrosion resistance, has a direct impact on the valve resistance to high pressure, corrosion resistance.

The degrees of specialization

As general-purpose pipeline equipment, valves have extensive applications in many fields, including industry, water conservancy and hydropower, urban pipeline networks, oil and petrochemicals, sewage processing and more. Due to the different conditions of industries, projects in the working conditions, media, seals, valve device models, materials, pressure rating, and other aspects of the technical requirements are not the same, which also caused the valve equipment for different industries further market segmentation.

The brand influence

According to statistics, many foreign valve manufacturing companies in various areas of expertise, is clearly ahead of the domestic enterprises in the brand of the effectiveness. The next 10 years, company should not fixed position in labor-intensive brand into innovative brand.

The industrial structure

Valve manufacturer in China is of small scale and low industrial concentration. There are about more than 3,000 valve manufacturing companies in China which ranked first in the world. But many of them are low-level, small scale, cottage-style enterprise. Less than 500 companies annual sales income exceed 500 million Yuan; only a dozen or so company the annual sales of one hundred million; only 8% to 9% summed by the market share of top 10 enterprises.

Market Observe: Amount of China's Valve Business Ranks First In the World

As a general part, valve is an indispensable part of major technical equipment, especially in systems of power, petrochemical, metallurgy, fertilizer, environmental protection, urban water supply and drainage, valves plays a key role in fluid control.

China's urbanization process has led to large-scale infrastructure construction throughout the country, a large number of water supplies and drainage, especially sewage treatment works are at large scale. Including water treatment equipment manufacturing industry has formed a strong water industry. Butterfly valve products corresponding changes in its performance and parameters based on changes in the field of device applications. The city construction system have gradually shifted to the environment-friendly plastic sheet valve, balance valve, metal sealed butterfly valve and sealing butterfly valve.

In addition, with the increase of China's energy construction and development efforts, China has owned the world’s most ultra-supercritical units. To large-scale develop power plant construction, used of large diameter, high pressure safety valve and pressure relief valve. China also needs to develop the steam trap, and the subcritical and supercritical parameters of the development. Metallurgical equipment manufacturing requires a lot of high-temperature, high-pressure valve device. China's valve industry development trend provides a good opportunity. Thus, the "12th Five-Year" period China's valve has huge market demand and the potential for development of the industry.

 At present, the number of valve companies in China is the top one in the world. Large and small valve enterprises have more than 6,000, about 900 valve enterprise the annual output value of more than 5 million Yuan. From a product point of view, the valve industry in China has been able to produce more than a dozen categories of products, such as plug valves, gate valve, globe valve, ball valves, butterfly valves, safety valves, check valves, throttle valves, pressure relief valve, diaphragm valve, trap, emergency shut-off valve, which the maximum temperature reached 570 ℃, the lowest temperature is -196 ° C, the maximum pressure of 600 MPa, the maximum diameter of 5350 mm.

According to official statistics, China has an annual turnover of the valve market up to about 50 billion Yuan, over 100 billion market occupied by the foreign valve companies; especially the valve is mainly dependent on imports of high temperature, high pressure and other critical devices.

Reporters learned that China's valve market "cake" is great, but the market is very competitive. As the valve is a low-margin product, valve market prices, while the annual rise and fall, but the magnitude is very small, relatively stable overall. The valve manufacturers are basically in accordance with the reference price of the valve industry compiled by the China General Valve Industry Association pricing. Due to intense market competition, some valve manufacturers even still run in 1996 prices for customers.

More than 10% of the market is occupied by foreign enterprises in the China valve industry. Valve Branch of China General Machinery Industry Association believes that improve the quality of the valve is the key to change this situation.