Government Support And Change Of The Market Environment Means What For Valve Industry?

China is one of the world’s fastest developed countries in valve market. Meanwhile there are some inevitable immature condition in updating and expanding when participating in the whole world competition. Although there are numerous constraints, but the market of China's valve market still has broad prospects, mainly due to policy support and the change of market environment.

1, the support of national policy

With the country accelerate the revitalization of equipment manufacturing step by step, the common basis of the development of the manufacturing industry will be further focused support.

The valve industry belongs to the equipment manufacturing industry. Equipment manufacturing is a strategic industry providing technical equipment for the different sectors of the national economy. It is closely related to capital-intensive technology, industrial upgrading, an important guarantee for technological progress and comprehensive national strength of the concentrated expression. Therefore, the state attaches great importance to the development of equipment manufacturing industry by taking policy measures to encourage and support over a longer period.

2, the strong market demand for valve products

The state-owned economic stable and sustained development and the gradual expansion of investment in fixed assets are advantage of the valve market demand. Especially several centuries’ construction of natural gas and electric power requires a lot of matched valve products such as pressure relief valve and butterfly valve. In addition, China is facing the era of industrialization, the petrochemical industry, power sector, metallurgy sector, chemical industry and urban construction will enhance the demand for valve products. For example, during the Eleventh Five period, the power industry required in large and medium-sized start projects for the prediction of the coal units totaled: Valve total demand of 153,000 tons, with an annual demand of 30,600 tons; valve of the total demand amount of 3.96 billion Yuan, the annual demand a $ 792 million Yuan.

3, After the accession to the WTO, with international trade threshold reduced as well as the adjustment of product structure in developed countries, China is becoming the world's largest factory, the manufacture of valve products are facing more room for development.

Therefore, as long as the companies can seize opportunities, strengthen R & D capability and constantly improve the technological content of products and product quality, there will be able to take the initiative in a broad market competition.

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.