Sanitary Butterfly Valve Price increase and low cost are the dominant factors for profit increase

The performance of sanitary welded butterfly valve manufacturers continues to advance under the background of capacity reduction. The price increase and low cost of sanitary welded butterfly valves are the dominant factors for profit increase. In the first quarter of 2017, the price of sanitary welded butterfly valves continued to rise, while the price of iron ore slowed down and the price of coking coal and coke fell. Many stainless steel companies optimized their marketing strategies according to market conditions, strengthened internal management, and worked hard to reduce manufacturing costs and achieved good results.

This year, the country's severe crackdown on "underground steel" played an important role in the recovery of the stainless steel seamless pipe market. According to the requirements, the medium-frequency furnace for producing architectural stainless steel must be dismantled by the end of June this year.

The entire sanitary welded butterfly valve industry has enjoyed the dividends of capacity reduction reform. The industry is also worried about the current huge profits in the stainless steel seamless pipe industry. At present, the profit of stainless steel seamless pipes is the peak of ten years and is not sustainable. Rising profits stimulate an increase in production, but demand is not optimistic.

According to the stainless steel senior network, the hidden supply of sanitary welded butterfly valves is huge, and there is still room for key seamless pipe companies to exert their production capacity. Some industry insiders said that once the national blast furnace capacity is fully loaded, it will be enough to fill the capacity gap after the withdrawal of the medium frequency furnace.

At present, the output of sanitary welded butterfly valves has gradually increased. Weaker demand will put pressure on the profitability of stainless steel seamless pipe companies. The continued overcapacity, the increase in sanitary welded butterfly valve inventory at the beginning of the year, and the slight slowdown in domestic demand will jointly suppress the price of stainless steel seamless pipes, which has reached a 4-year high. At the same time, the high price of raw materials and the reduction in exports will also put pressure on the profitability of stainless steel seamless pipe companies.

Real estate investment is the biggest driving force for domestic demand for sanitary welded butterfly valves. With the tightening of policies to suppress the rise in housing prices, real estate investment may slow down this year, so the consumption of domestic sanitary welded butterfly valves will decline.