Situations about China Pump and Valve Industry

As an important parts supplier, the pump and valve business has a close relationship with many industries such as the real estate and construction

. In recent years, due to the good investment environment and the deepening of the policy about infrastructure development, China's pump and valve industry gains a lot of opportunities for quick development.

However, the Ministry of Industry and Information Technology of China has announced to the public that the steel industry is on the list of the 18 industrial enterprises which are backward. As the supplier of raw material for pumps and valves, the steel industry is faced with cutting down the production which will have a great impact on the pump and valve industry.

Under the increasing pressure from the environment, the steel industry which is high in pollution and energy-consumption needs transformation. To some extent, eliminating of the backward production capacity will also lead to cutting down of the production. Some analysts believe that production reduction will result in short-term rises of steel prices. As a result, costs of pump and valve industry will be increased which will lead to the short-term price fluctuations in this industry.

Moreover, according to the current situation of the pump and valve industry, the development trend of it also faces the risk of elimination of backward production capacity.

As the basic mechanical components, there is less initial financial and technical input in pump and valve industry when compared to the main engine industry. Through years' of market-driven development, the number of enterprises which produce pumps and valves is increasing rapidly. Meanwhile, the production of pumps and valves also has increased substantially. But an embarrassing situation is that small and medium enterprises account for a large proportion, while the large-scale valve enterprises are few. Besides, brands of Chinese pumps and valves are not good enough. Thus, Chinese pump and valve products are less competitive in the market.

Additionally, due to the impact of the international financial crisis, the market shrinks rapidly which has much negative effect on the pump and valve industry. However, some experts think that although the financial crisis has much negative impact on the pump and valve industry, it also helps to correct the shortcomings of this industry and improve a lot at the same time.

Some insiders point out that some Chinese pump and valve enterprises begin to select the superior products and eliminate the inferior ones which are resulted from the reduced orders and the increased price of raw material. It enables the pump and valve industry to have a better space for development.

Level of exports of pump and valve industry in China needs to be improved. It is said that the annual sales volume of the industry can reach hundreds of billions, but the export share is negligible. Pump and valve products do not have the competitiveness in the international market.

Although the exported products have low added-value, but there is still a potential market for the pump and valve industry if it increases R & D efforts and develop highly added value products.

Situations about China Pump and Valve Industry

By: Lois Ling

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