What changes with the seamless steel pipe decline

According to the steel industry survey report, the outbreak of the financial crisis in 2008 is not only the beginning of China's economic growth into the deceleration phase, but also the watershed of China's seamless steel pipe industry from the gloom to the doom. Recovery of exports in 2009, and the "4 trillion yuan" stimulus policy implementation, the recession slowed the pace of China's seamless steel pipe industry decline. However, since the year of 2011, with the economic stimulus to pull the weakening effect of the steel industry, China's seamless steel pipe industry has experienced nearly four years of continuous downward trend, not only still no signs of improvement, but there are worse.

Although China's seamless pipe market prices gradually recovering from the sudden drop in 2008 after the financial crisis, and in stimulating economic stimulus in the second half of 2010 and early 2011 was recovered to the level before 2008. However, beginning in the second quarter of 2011, with the slowdown in the global economy, domestic production has peaked seamless steel, seamless steel demand at home and abroad are showing a declining trend. A serious imbalance between supply and demand makes our seamless steel pipe industry gradually lost its independent pricing, is more about receiving raw materials and bulk steel prices.

Up to 4 years prices continued to fall, the traders profit margins shrink, more and more traders get out of the seamless steel pipe industry. The delisting of traders not only decreases the seamless steel pipe business sales channels, but also makes the "reservoir" role of the market weakened. Inventory pressure gradually transferred to the upstream seamless steel pipe manufacturers, which put forward a higher requirement for the steel pipe mill financial strength. Meanwhile, China's seamless steel pipe market are in the long-term downward trend, decreasing corporate profits making seamless steel tubes and the emergence of the phenomenon of consecutive losses. Corporate debt increased year after year, more and more enterprises have closed down the seamless steel pipe mill.