Sanitary Diaphragm Valve The foundation for price increase and profit recovery is still not solid

2017 is the year for the sanitary diaphragm valve industry to resolve excess capacity. The current fundamentals of stainless steel pipe overcapacity have not changed, and the foundation for price increase and profit recovery is still not solid, and the industry has not completely gotten out of the predicament. In addition to the problems of low industrial concentration and intensified international trade frictions of stainless steel, the chaos of underground steel is serious, and the market environment needs to be further improved, which is also listed as a prominent problem in the development of the industry.

"Underground steel" is a chronic disease in the sanitary diaphragm valve industry. With the advancement of the work of de-capacity of stainless steel pipes, a large number of "underground steel" enterprises have been exposed in various places. These enterprises not only do not meet the requirements in terms of product quality, safety, and environmental protection, but also have behaviors such as not issuing invoices to evade taxes, counterfeiting high-quality enterprise products, and unlicensed production and sales, which seriously disrupt the market order and severely squeeze the market space for the production and operation of legal and compliant enterprises, and urgently need to be completely banned.

Industry experts generally believe that the resolution of excess capacity of stainless steel pipes in 2016 has achieved phased results, but this work cannot be accomplished overnight, and many problems are being gradually resolved. In 2017, efforts to resolve excess capacity of stainless steel pipes will continue to increase.

The Raw Materials Department of the Ministry of Industry and Information Technology emphasized that the work of resolving excess capacity of sanitary diaphragm valves will further strengthen market-oriented and legal methods, highlight the strict implementation of environmental protection, energy consumption and safety standards, and make "substandard steel" the top priority of capacity withdrawal, and resolutely and thoroughly ban the illegal and irregular capacity of "substandard steel" in accordance with the law. The central, local, social and enterprises will work together to crack down on "substandard steel" and ensure that it will be completely banned before the end of June 2017.

Dealing with zombie enterprises is the key to resolving excess capacity. Sanitary diaphragm valve companies that choose to withdraw on their own initiative will face problems such as asset and debt disposal and employee placement. In my country, promoting capacity reduction must also properly place employees, and to create a good and stable environment for this purpose, especially to help relevant employees with re-employment, strengthen vocational training, employment services and policy support, do a good job in social security connection, increase assistance to people in difficulties, and use public welfare posts to support and help, and the government must cover the bottom line. In this way, a set of practices can be summarized from the in-depth practice of stainless steel and coal capacity reduction, so that other industries can have a clear idea of ​​capacity reduction in the future. The determination to reduce the capacity of sanitary diaphragm valves in 2017 will not be shaken, and the intensity will not be weakened.