Market continues to be weak

After years of development, the valve industry manufacturers have rapidly increased, and valve production levels have been greatly improved, and valve production has increased substantially. The main products of the valve are basically able to meet the needs of the domestic market, and the complete rate, complete set level and complete set capacity of the valve market have been greatly improved. Coupled with the expansion of China's current energy market, the demand for valves for petroleum, chemicals, and electricity, especially nuclear power, has increased dramatically.

Recently learned in the valve industry, the current situation in the valve industry is not optimistic, a lot of valve companies affected by weak domestic and foreign markets, the industry has seen a sharp decline in domestic and foreign orders, production tasks are obviously insufficient, sustained high growth for many years are falling, some Due to the sluggish production and sales of enterprises, there have been some problems in the turnover of funds. The development of the industry and enterprises have encountered difficulties in varying degrees. It is expected that such a weak and difficult situation will be maintained until the second half of this year and affect the first half of next year. This round of new difficulties has affected the valve industry and is also the most difficult period for the valve industry since the financial crisis. In the face of such unfavorable situation, our valve industry should actively respond to eliminate the current domestic and international economic downturn, to the negative impact of the valve industry, on the basis of stability, and actively respond to difficulties, to achieve a good completion of production and sales.

It is reported that as the valve industry Wenzhou valve industry from January to June, 8672 batches of export valve products in Wenzhou, the export amount of 269 million US dollars, the export amount increased by 42.33%. After a sustained increase of nearly half a year, since June, Yongjia County's valve exports have experienced a two-month decline in growth. The continued weakness in foreign markets, the continuous growth of cost advantages, and the high-valued RMB exchange rate all put pressure on Yongjia small and medium-sized valve companies.

According to the analysis of relevant economic experts, the current Chinese economy has experienced the most difficult situation since the international financial crisis. The GDP growth rate in the first quarter was 8.1%, and it fell to 7.5% in the second quarter. The reasons for the decline are as follows: First, the global financial crisis, foreign trade has been adversely affected by the shrinking international market, exports that have driven China's economic development for a long time have encountered major difficulties, and second, China’s fastest-growing eastern coastal areas and other regions are undergoing The profound restructuring of the market is seeking new growth points and new industries. The emergence, cultivation, development and maturation of these growth points and industries will take time. Third, real estate regulation and control will also exert great pressure on many related industries. .

The real estate, coal, etc. that have been operating at high levels in previous years have all declined to varying degrees. The domestic inflation expectations and rising costs have brought pressure and influence to the company.

Also in China's valve industry also encountered some problems, production and sales growth fell, regardless of domestic orders, or foreign orders have declined in varying degrees, many domestic companies involved in the recession of real estate, domestic sales of valves have also been reduced, sharp decline in production tasks situation. Due to the sluggish international market, exports to foreign trade companies have also been greatly affected. Orders have been insufficient, and many export orders have declined. It is understood that: Suzhou, a large-scale foreign trade valve companies, orders significantly less than the second half of this year, the company general manager said that last year's exports can be maintained at a good level, it may be 10% lower than the same period last year; Shanghai, a company CEO said, " Nowadays, the valve business of companies is becoming more and more difficult to do, the production cost is high, and the costs are skyrocketing. The domestic and foreign markets are sluggish. Under such circumstances, the plan for companies to develop new products is also temporarily put on hold, as far as possible. Reduce costs and keep capital running.

One side is the continued weakness in the external market, and the other is the weakening of the comparative advantage under the influence of rising integrated costs. The author believes that the entire domestic valve equipment manufacturing industry is facing a “grief period” of industrial restructuring. In this regard, industry insiders call for, on the one hand, the government should strengthen the guidance and support for industrial transformation and upgrading, on the other hand, companies themselves must also strive to adjust the direction of industrial development, accelerate the pace of transformation and upgrading, to meet the needs of market development.

At the same time, we must also realize that under the impetus of industrialization, urbanization, reform, and globalization, China’s valve equipment manufacturing industry has broad prospects. In the future, the valve industry will be high-end, localized, modern, and digital. It will be the future valve. The main direction of industry development.