The Competition Analysis of Chinese Valve Industry in 2011-2012

Global valve manufacturing focused on the economically developed regions of North America, Europe and Asia, Japan, China and other regions. Ranked global valve manufacturing industry, the top five were: the United States, Japan, Germany, China and the United Kingdom. Among them, the U.S., Europe and Japan and other developed countries and regions, mainly in the metallurgical, petrochemical, nuclear power valve, lower production and sales ratio to the drain valve. In recent years, demand-pull impact to the drainage valve market faster growth areas, including China, India and other countries, including East and Southeast Asia. Domestic point of view, our valve business volume highest in the world, but at the same time, the domestic to the overall size of the drainage valve business too small, industry concentration is not high, the size and financial strength is difficult to compete with large foreign companies. Valve Branch of China General Machinery Industry Association statistics show that in the first half of 2009, as of the end of June 2009, the main business of the semi-annual sales volume of China's major water supply and drainage valve business in 300 million yuan.

An Outlook for the Development of Water Drainage Valve in 2012-2013

(1) market overall demand continued to maintain steady growth

Mechanical processing and manufacturing, to the water valve manufacturing industry and its market development is mainly affected by the stimulating effects of the downstream application market. According to statistics of China General Machinery Industry Association, the world's total demand for the types of valves, industrial valves, including about $ 60 billion, of which approximately $ 6.84 billion to the water valve. With the growing demand of developing countries on the control valve, and environmental protection valve, to the water valve industry is expected to remain stable growth.

From the perspective of the domestic situation, the infrastructure is the focus of China's economic construction, water supply and drainage in size, since the global economic crisis, the state increase its infrastructure investment, water treatment equipment manufacturing industry has been formed, including water supply and drainage valves water industry, provide a huge space for development of the drainage valve industry.

(2) large diameter, large diameter valve market, domestic production capacity, market demand

With the constantly increasing rate of urbanization in China, urban population growth, the scale of the supply quantity of the water plant and sewage treatment plants and sewage treatment is to gradually increase the caliber of the pipe network is increasing and therefore require a large number of various types of large diameter, large diameter drain valve door. At the same time, into the water conservancy construction and management of various types of flood control, drainage, irrigation, water supply and drainage, hydroelectric power, water and soil conservation, water conservation and other works of construction is very strong demand for all types of large diameter, large diameter water supply and drainage valves, resulting in At present, large-caliber and large caliber to the drain valve capacity production can not meet the downstream market demand growth. The next few years, China continues to accelerate the implementation of comprehensive management of a new three projects of the Huaihe River and Taihu Lake, Dongting Lake, Poyang Lake, and promote key sections governance of Ningxia and Inner Mongolia reaches of the Yellow River, Yangtze River middle and lower reaches of the river regime control major rivers, "South Water Transfer to North” project of the century the launching of the project will continue to boost the scale of demand for products of various types of valves, especially in large diameter valve, large triple offset butterfly valve, large diameter turbine inlet valve, large diameter flow control valve and the varieties of the large diameter vacuum valve. Due to the large diameter and large diameter valve production on the technical and technological requirements to be much higher than normal valves, a single product with higher added value, a higher demand this level of product design and processing level.

Currently, only some of domestic enterprises can meet the requirements for technology and equipment, most of the other companies in the industry to the production of normal small diameter valves, from the entire industry, the production of large diameter water supply and drainage valves production will appear in a steady growth trend. According to take intermediate values ​​between the valve Branch of China General Machinery Industry Association statistics, large diameter and large diameter valves in the field of water supply and drainage, the share of sales accounted for approximately 50% to 60%, 55%, from 2009 to 2011 The size of the market was 82.4 billion yuan, 9.55 billion yuan and 10.58 billion yuan.

A general overview of worldwide valve industry in 2012

Valve is widely used in all major aspects of the national economy, energy, petrochemical, metallurgy, electric power and other industries. It is one of the key equipment in the equipment of machinery, pipelines and other fixed assets. Therefore, the development of valve industry is relative with macroeconomic cycles as well as investment in fixed assets.

Since 2000, the global economy steadily recovering since the trough, according to IMF statistics, in 2001-2007 the average annual global GDP growth of 4.04 percent average, annual global investment in fixed assets grew by 3.72 percent. European industry forecast (European Industry Forecast Limited) "global valve market :2008-2013," Statistics, the compound annual growth rate of the finished valve sales revenue in the global economic up-cycle in 2002 and 2007 was 5.60%, to maintain steady growth of development.

In 2008, the financial crisis began in earnest in the United States rapidly sweeping the globe, including Europe, North America, including the major economies are affected, global GDP growth rate dropped from 5.15% in 2007 to 3.2% in 2008 and 2009 -1.32%. The rapid cooling of the global economy, investment in fixed assets of the valve downstream industry had a certain negative impact, oil and gas, power, chemical and other industries have emerged to postpone the implementation of the phenomenon of fixed assets investment projects, the sound development of steady growth in the valve industry The momentum had a negative impact. According to market research company McIlvaine, the global valve industry in 2009 revenues of $ 47.436 billion, a growth rate of only 0.56%.

The medium to long term, the main factors affecting the valve industry, the expansion of downstream industries, including the growing energy demand, the continued increase in global population and urbanization in developing countries, the process of industrialization and did not change fundamentally the result of the financial crisis. The world's major economies have entered the economic recovery cycle (according to IMF statistics and forecasts, 2010 and 2011 global economic growth have resumed their growth, the growth rates were 5.2% and 3.8% in 2012 - 2013 global economic growth rate is expected to remain above 3%). Valve industry since 2010, began to recover, according to a the McIlvaine survey and forecast data, 2010 and 2011, global valve industry revenues were $ 49,230,000,000 and $ 51,066,000,000, the growth rate back to 3.78% and 3.73% 2012 -2015 global valve industry expected sales growth will reach 4.16% and 3.93%, 3.94% and 4.18%, showing a steady upward growth.

Valve industry market has benefited from Chinese economic development
There are a lot of valve companies in China and can produce many products, from gate valve, globe valve, butterfly valve, ball valve etc multiple types. Up to now, the Chinese valve industry can produce more than a dozen categories of valve products, the max using temperature can more than 1000 C degree, the lowest temperature of -196 C degree, extreme pressure of 600 Mpa. These are basically meet the needs of domestic market.

The development of chinese valve companies is inseparable from the development of the market. In the future, China's valve industry market prospect is broad, especially driven by the state investment, the valve market will be in a steady rise in status. Now the current policy in China is to revitalize the equipment manufacturing industry, valve manufacturing is important in the equipment manufacturing industry, will also get supported by the state. The valve industry is the important field for the equipment manufacturing industry. Also the market should thanks to the fixed investment. 

The development of the valve industry will benefit from the continued development of state-owned economy and the expansion of fixed investment for a long time in the future. For several projects such as West Gas to East, West Power to East and South Water to North projects will use a lot of valves and related products, this long-term stability of large-scale investment projects are required the quality valves.

The valve market development, will also benefit from the advance of the entire industrial sectors, such as the petrochemical industry, power industry, metallurgical industry, with the upgrading of the industrial-scale increase in demand for valve products, such as the National Eleventh Five-Year during coal units, the implementation of the project will bring 153,000 tons of demand for valves.

Valve industry market has benefited from global trade
China's valve industry in recent years, the volume of exports increased year by year, the domestic valve products are more and more recognized by the international market. With the strengthening of our country's position in international trade, business, and developed countries, the product structure adjustment, China's valve products will also gain greater market space.