China Pump Valve Industry Looking for Opportunities and Promoting Development in Transition

China Pump Valve Industry Looking for Opportunities and Promoting Development in Transition

As accessory suppliers, the fate of pump enterprises is closely related to the development of industries such as real estate, construction, industry, engineering project and so on. In recent years, under the influence of a good national investment environment and the policy of increasing basic construction deepening, Chinese pump valve industry ushered the development opportunities with sustained high growth. However, the steel industry is also in the list of 18 eliminated industrial enterprises with backward production capacity, which has announced to the public by the Ministry of Industry and Information Technology of China (hereinafter referred to as the Ministry of Industry). As raw materials for pump valve, the steel will face the production reduction risk, so the industry will also be impacted greatly. Nowadays, with the environmental pressure increasingly growing, the high-pollution and high-energy-consumption steel industry needs urgent conversion. But in a way, the elimination of backward production capacity will also cause production reduction because it will restrict production capacity. Analysts believe that, in the steel industry, production reduction will result in the steel price increase in short term, and then the cost of the pump valve industry will increase, which will lead to short-term price fluctuations in pump valve industry.

Moreover, from the perspective of the current development situation of valve industry, the development trend of itself is also facing the risk of eliminating backward production capacity. It is understood that, valve, as the basic parts of machinery, its initial funds and technical investment for enterprises to establish production line is relatively small when compared with machinery. After the market impulse in recent years, the manufacturers of China pump valve industry have increased rapidly, the production level has been greatly improved, and the output of pump valve also has also a substantial increase. But it is more embarrassing that small and medium private valve enterprises have rapidly increased in this process, which account for a large proportion, oppositely, large pump valve enterprises are less, and the prestige property is relatively poor, Chinese products competitiveness is poor than foreign pump valve products.

Under the impact of international financial crisis, the market is rapidly shrinking, which is undoubtedly "cold air" for steel, construction and its upstream and downstream industry, which is dependent on the development of these industries, and it is also a bad news for valve industry. However, insiders found that although the financial crisis has had negative impact on China industry to some extent, but it also has revealed the shortcomings in the industry, which have been improved with the help of the market economy system. Insiders also pointed out that, benefit from financial crisis, China pump valve industry began to select the superior and eliminate the inferior because of the reduction of orders and the price increase of raw material, the elimination of some backward production capacity has made the industry go into battle with a light pack and win better development space.

The export market is a little thin against the vast domestic market of pump valve industry. As reported, the annual total sales of pump valve industry can reach to a thousand billion Yuan, but the percentage of exportation is negligible, the products for exportation in pump valve enterprises that locate in Zhejiang, Jiangsu, Shanghai, Sichuan and other places are mainly OEM or low value-added products, and the export volume is smaller, the product brands have not formed influence in the international market.

In this regard, experts point out that to explore the international market is different from domestic market, pump valve exporters should have two conditions: first, the export products must meet the requirements of international markets on choosing materials, testing, product functions and delivery time; second, salesmen can accurately understand the international market, and pass the market demand information to the enterprise accurately and quickly.

Above provided by SelectChina.com, and find more information on China Machinery News/ China Machinery Manufacturers.

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