In-depth analysis of market status and trend of valve manufacturing industry in China in 2019

Analysis of basic situation of valve industry: definition and classification

Valve (valve) is the control component in the fluid conveying system, with cut-off, regulation, diversion, prevention of countercurrent, voltage stability, diversion or overflow pressure relief and other functions. Valves for fluid control systems range in variety and specifications from the simplest globe valves to the most complex automatic control systems. Valves can be used to control the air, water, steam, various corrosive media, mud, oil, liquid metal and radioactive media and other types of fluid flow.

Valves can be divided into industrial control valves and civilian valves, industrial control valves are mainly used to adjust the industrial automation process control in the field of medium flow, pressure, temperature, liquid level and other process parameters. According to different classification standards, industrial control valves can be divided into different types:

(1) according to the regulation form, it can be divided into regulation type, cutting off type, cutting off type;

(2) according to the valve body material, can be divided into metal type, non-metal type, metal valve body lining type;

(3) according to the driving mode, it can be divided into electric type, pneumatic type, hydraulic type, manual type;

(4) according to the temperature range, it can be divided into ultra-low temperature valve, low temperature valve, room temperature valve, medium temperature valve, high temperature valve;

(5) according to the pressure range, it can be divided into vacuum valve, low pressure valve, medium pressure valve, high pressure valve, ultra-high pressure valve.

It is expected that in the next few years, with the rapid development of China's economy and the improvement of industrial automation degree, China's equipment manufacturing industry transformation and upgrading, as well as the country's investment in oil and gas, petrochemical, environmental protection, power, metallurgy and other fields continued to grow, China's control valve market overall scale will maintain a rapid growth.

The global industrial valve market demand, including drilling, transportation and petrochemical oil and gas field accounted for the highest proportion of 37.40%, followed by the energy and electricity and chemical industry demand, respectively accounted for the global industrial valve market demand of 21.30% and 11.50%, the first three areas of market demand for all the market demand of 70.20%. In the application field of domestic industrial valves, chemical industry, energy and power industry and oil and natural gas industry are also the most important markets for valve sales. The market demand of valves accounts for 25.70%, 20.10% and 14.70% of the total market demand of domestic industrial valves respectively, accounting for 60.50% of the total market demand.

2019 China valve industry output analysis forecast

According to the "Chinese valve manufacturing industry demand forecast and transformation and upgrading analysis report" statistical data released by the qianzhan industry research institute, in 2017, China's valve output has reached 7.86 million tons, a year-on-year growth of 2.77%. As of the first half of 2018, China has imported 511.26 million sets of valves, up 25.1% year-on-year. In the first half of the year, China's valve imports amounted to $3,632 million, down 0.5% year-on-year. It is predicted that China's valve output will reach 8.3 million tons in 2019, with an average annual compound growth rate of about 3.02% in the next five years (2019-2023), and it is predicted that China's valve output will reach 9.35 million tons in 2023.

Analysis of the development dilemma of China's valve industry

1. The overall market concentration of the industry is low.

Worldwide, the number of enterprises engaged in the valve industry, on the whole, the competition is fierce. From a global perspective, most of the world's leading valve enterprises have landed in the capital market and experienced the process of using the capital market to promote and achieve industry integration. By contrast, the overall scale of domestic valve enterprises is small, even the leading enterprises in the industry are mostly not landing in the capital market, lack of long-term financial support to achieve industry integration.

2, most of China's valve enterprises are still in the industry's low-end market

Low-end industrial valves and civil market of the main products are cast iron valves and valve, bronze valves, valve products for the market demand is big, low technical content, barriers to entry is not high, with a large number of domestic, mill type small valve manufacturing enterprises, some operators to buy the valve without name address, print famous manufacturer of famous brand and certificate of approval, market competition is intense but disorderly, the low level of profit. At present, more than 90% of the domestic valve export enterprises belong to the parts manufacturers or OEM manufacturers, of which a considerable number of enterprises in the low-end industrial valve and civilian valve field.

3. Obvious gap between China and foreign countries

Limited by the overall development level of the industry, there is still a big gap between domestic control valve products and imported products of well-known brands, mainly in the aspects of sealing, appearance design, service life, electric device and pneumatic device technology level. Therefore, in many key areas and complex working conditions, still use foreign imports of well-known brand control valves. In addition, in terms of brand awareness, product quality and technical level, foreign enterprises occupy more obvious active advantages and positions than domestic enterprises.

Analysis of favorable factors for development of valve industry in China

1. The "13th five-year plan" of nuclear power drives the market demand for nuclear power valves.

With the development of nuclear power technology, the safety and economy of nuclear power, as a recognized clean energy source, have been improved and gradually been respected by people. Nuclear power valve is a large amount of equipment in nuclear power projects, with the rapid development of the industry, nuclear power valve demand scale will continue to expand.

According to the 13th five-year plan for the development of the nuclear industry and other documents, the installed capacity of nuclear power will reach 40 million kilowatts by 2020. Nuclear power generates 260 to 280 billion kilowatt-hours of electricity a year. On the basis of the 16.968 million kilowatts of nuclear power under construction and in operation, about 23 million kilowatts of nuclear power capacity will be put into operation. At the same time, considering the subsequent development of nuclear power, the nuclear power capacity under construction should be maintained at around 18 gigawatts by the end of 2020.

2, petrochemical special valve, ultra-low temperature valve and other products have broad market demand

Petroleum and petrochemical industry in China is developing in the direction of large scale and scale, the next five years will continue to maintain the sustainable development, the domestic dozens of sets of thousands of equipment of oil refining and megaton ethylene plant is facing new and renovated, at the same time, the transformation and upgrading of petrochemical industry faces, such as hydrogenation mention quality, three wastes recycling energy conservation and environmental protection project a lot, become a petrochemical valve, flange and forging new market space.

With the promotion and application of clean energy, more attention will be paid to the popularization of liquefied natural gas (LNG), and the demand for cryogenic valves will increase significantly. The key valves of China's ultra (ultra) critical thermal power units have long been dependent on imports, which not only increases the cost of power construction, but also is unfavorable to the technical progress of domestic valve manufacturing industry. In terms of large gas turbines, the state is also investing a large amount of manpower and financial resources to encourage the introduction, digestion, absorption and innovation, so as to change the dependence of large gas turbines and their key equipment on imports. In this context, petrochemical special valve, ultra-low temperature valve, ultra (ultra) critical thermal power unit vacuum butterfly valve, large gas turbine steam reheat valve and other products will face a wide market demand.

3. The mid-end industrial valve market is relatively mature

Of industrial valves main products for the use of the market environment relatively loose industrial valves, generally for carbon steel or stainless steel valves, valve product market demand is big for this market, need to meet the quality requirements of industrial, technical content is higher, generally set qualified supplier qualification and terminal customers, so there is a certain industry barriers to entry, competition level is lower than the low industrial valves and the valve market, higher profit levels. Valve industry in China, some big enterprises, as a result of earlier to enter the international market, in terms of production technology and production technology is relatively mature, and many international customers to establish a stable relations of cooperation, valve production levels have increased greatly, valve production increased dramatically, also has in the end the valve market occupies more important position, has the certain industry.