Good Prospect in China Seamless Steel Pipe Industry

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Courtesy of Derbo Steel Pipe Co., Ltd.

Seamless steel pipe industry maintains a strong development momentum, and it is an important material in the national economic construction. Seamless steel pipe is a kind of economical steel, which is widely used in petroleum, electric power, chemical, coal, machinery, military, aerospace and other industries, countries around the world, especially industrial developed countries have attached great importance to the seamless steel pipe production and trade.

China's economic growth has led to the development of seamless steel pipe industry. From the point of view of international experience: rapid growth is not the product of balanced growth of all industries, but driven by several fast-growing dominant industries. Leading industries in different periods are different, the transformation of leading industries promote the sustained and rapid economic growth. From the point of view of domestic experience: the leading industries in the 1980s are light industry, textile and others; the leading industries in the 1990s are basic industries and infrastructure, a new generation of home appliances, real estate and others; after 1997 because of the leading industry emerged 'suspended' situation, the economy slowed down. This situation until 2002 finally changed, and a new batch of leading industries surfaced. The leadings are residential, automotive, electronic communications and urban infrastructure construction industries these with the leader of the final product properties. These pilot industries led to a number of intermediate investment industries, mainly steel, nonferrous metals, building materials, machinery, chemical materials and equipment industry. The above two aspects also led to power, coal, oil and other energy industries and ports, railways, highways and other transportation industries’ growth. It is the rapid growth of the industries led to the market demand of seamless steel pipe, and promote the rapid development of the seamless steel pipe industry.

Sustainable and rapid development opportunities of seamless steel pipe industry and domestic seamless steel pipe market are currently in the consumption growth period. Domestic seamless steel pipe consumption will maintain a rapid growth rate and provides favorable opportunity for the development of domestic seamless steel pipe. First, energy, transportation, petrochemical pipe demand is not reduced, high performance varieties grow rapidly. The needed seamless steel pipe in construction and maintenance of energy, transportation, petrochemical and other facilities still occupies a very important position in the steel market. In recent years, the demand for high performance and new varieties increased rapidly, such as high performance oil well pipe, large diameter boiler pipe in power plant, corrosion resistance, low temperature resistance of the petrochemical pipe and stainless steel pipe and so on. Second, the transport pipeline of oil, natural gas, refined oil, coal slurry, coal slurry and other fluid pipe, especially demand for high strength pipeline will rise sharply. Third, the rapid growth of the construction industry, the demand for construction of high-grade space grid pipe grows rapidly. Fourth, the demand for steel pipe with high technical content increased. The demand, variety and quality requirements for seamless steel pipe in automotive, home appliances, shipbuilding, equipment manufacturing and other industries increased, and the variety of seamless steel pipe the is developing in direction of high technology. 

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