Analysis on Influencing Factors of China's valve industry from 2019 to 2023

1、 Favorable factors

（1） The 13th five year plan of nuclear power promotes the market demand of nuclear power valves

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

According to the 13th five year plan for the development of nuclear industry and other documents, by 2020, the installed capacity of nuclear power will reach 40 million kilowatts, and the annual power generation of nuclear power will reach 260-280 billion kilowatt hours. On the basis of 16.968 million kilowatts of nuclear capacity under construction and operation, the newly put into operation nuclear power installed capacity is about 23 million kilowatts. At the same time, considering the follow-up development of nuclear power, the capacity of nuclear power under construction should be about 18 million kilowatts by the end of 2020.

（2） Petrochemical valves, ultra-low temperature valves and other products have broad market demand

China's petroleum and petrochemical industry is developing in the direction of large-scale and sustainable development in the next five years. Dozens of ten million ton oil refining units and one million ton ethylene units are facing new construction, reconstruction and expansion. At the same time, the petrochemical industry is facing transformation and upgrading. There are many energy-saving and environmental protection projects, such as hydrogenation and upgrading, three waste recycling and so on, which have become Petrochemical valves, flanges and forgings This is a new market space. With the promotion and application of clean energy, the popularization and use of liquefied natural gas (LNG) will be further valued, and the demand for ultra-low temperature valves will also show a substantial growth. China's long-term dependence on imports of key valves for ultra supercritical thermal power units not only increases the cost of power construction, but also is not conducive to the technical progress of domestic valve manufacturing industry. In terms of large-scale gas turbines, the state is also investing more manpower and financial resources to encourage the introduction, digestion, absorption and innovation, so as to change the situation of large-scale gas turbines and their key equipment relying on imports. In this context, petrochemical special valves, ultra-low temperature valves, vacuum butterfly valves for ultra supercritical thermal power units, large gas turbine steam reheat valves and other products will face a broader market demand.

（3） The middle end industrial valve market is relatively mature

The main products in the middle end industrial valve market are the industrial valves with relatively loose use environment, generally carbon steel or stainless steel valves. The market demand of valve products facing this market is large, which needs to meet the quality requirements of industrial grade. The technical content is high, and the end customers generally set up the qualification of qualified suppliers. Therefore, there are some barriers to enter the industry, and the level of competition is lower than low The profit level of industrial valve and civil valve market is high. Some large-scale enterprises in China's valve industry have entered the international market earlier, are more mature in production technology and production process, and have established a relatively stable cooperative relationship with many international customers. The valve production level has been greatly improved, and the valve output has also increased significantly. They have occupied an important position in the middle end valve market, and have a certain potential Revitalize the foundation.

2、 Disadvantageous factors

（1） The overall market concentration of the industry is low

Worldwide, there are a large number of enterprises in the valve industry, and the overall 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 realize industry integration. In contrast, the overall scale of domestic valve enterprises is relatively small, and most of the leading enterprises in the industry have not landed in the capital market, lacking long-term financial support to achieve industry integration.

（2） Most of China's valve enterprises are still in the low-end market of the industry

The main products in low-end industrial valve and civil valve market are cast iron valve and bronze valve. The demand of valve products facing this market is large, the technical content is low, and the entry threshold is not high. There are a large number of family style and workshop style small valve manufacturers. Some operators buy Valves without factory name and address, and print famous brands and certificates of famous manufacturers. The market competition is fierce But disorderly, low profit level. At present, more than 90% of domestic valve export enterprises belong to parts manufacturers or OEM manufacturers, among which a considerable number of enterprises are in the field of low-end industrial valves and civil valves.

（3） The gap is obvious at home and abroad

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, technical level of electric and pneumatic devices, etc. Therefore, in many key areas and complex working conditions, the control valves of foreign famous brands are still used. In addition, in terms of brand awareness, product quality and technical level, foreign enterprises have more obvious initiative and position than domestic enterprises.