Looking forward to steel pipe market in 2019 according to 2018 performance

According to the listed steel pipe companies, they announced the results that the performance of the steel pipe market in 2018 is quite excellent. The earnings of steel pipe industry ushered in a peak. Industry insiders believe that in the end of the real estate cycle, the decline in consumption of cars, appliances will continue. The steel industry has had its ups and downs in 2018.Take the local thread price in Shanghai as an example. In march, there was an extreme situation that the monthly price dropped by more than 600 yuan/ton, and then it climbed by 1200 yuan/ton and reached the high of the year in October. From the final results, steel companies still had a good year.

In 2018, the net profit attributable to shareholders of the listed company is expected to increase by 1.785 billion yuan to 2.088 billion yuan year-on-year, and increase by 67.46% to 78.91% year-on-year. Baosteel's net profit is expected to rise by 1.5 billion yuan to 2.3 billion yuan, up 8 percent to 12 percent year-on-year. Based on this data, baosteel's annual net profit for 2018 will exceed 21 billion yuan.

In 2018, the outstanding performance of hollow section manufacturers mainly lies in the good market environment provided by the supply-side reform. Under the background of tight balance, both quantity and price rise. In addition, about 50 million tons of production capacity of new iron ore will be added in 2018. The price of iron ore, the main raw material, fluctuates, making the cost side pressure of steel mills less. From the market situation, the overall performance of the steel sector in 2018 is not good. Compared with the tight balance between supply and demand for cold rolled steel pipe in 2018, the supply in 2019 will slightly increase and the growth of demand will slightly slow down, which will weaken the support for prices.

In 2019, with the downward pressure on the economy, the overall marginal performance of steel supply and demand is weaker, and the overall profits of the steel industry will narrow. In the past three years, the steel industry has reduced 150 million tons of excess capacity and removed 140 million tons of "steel". The power of the steel mill significantly enhanced. At the same time, the real estate demand for square steel pipe is still at a relatively high level, and more efforts have been made to make up for the shortage of infrastructure, so as to support the construction steel from the demand.

The steel industry has undergone a structural adjustment

China has cut steel production capacity of China hollow section tube by more than 150 million tons since 2016, 114% of the global total, according to 21st century business herald.To this end, China has relocated 280,000 steel workers alone, more than the total number of steel jobs in the US, Europe and Japan. At present, China's steel market conditions have improved significantly;capacity utilization rate of  crude steel has returned to more than 80% of the reasonable range. The capacity has entered the deep water now; the steel industry transformation and upgrading difficulties are also increasing. Since last year, due to the favorable market situation of the steel industry, driven by high profits, some regions and enterprises have become more willing to invest in the steel industry, and the implementation of capacity replacement in some regions is out of shape, and the impulse to increase production has increased significantly.

After more than three years of cutting capacity of mild steel tube, the steel industry is now entering a stage of structural adjustment. The means of administrative regulation is gradually weakening, mainly through the market demand by limit production enterprises, but this year the continuous pessimistic will lead to the iron and steel industry of real estate profits further narrowed. Under the pressure of deleveraging of domestic real estate enterprises, operating income and net profit of a number of listed steel enterprises in the third quarter fell to different degrees and they will continue to bear some pressure in the short term. On Oct. 28, chongqing iron and steel released its third quarter 2019 report, showing that its operating revenue in the first three quarters was 17.284 billion yuan, down 0.87 percent from the same period last year. Net profit attributable to shareholders of listed companies was 720 million yuan, down 51.36% from the same period last year.

Chongqing steel pipe suppliers explained that the decline was mainly due to a 4.4 percent year-on-year drop in the composite sales price of steel, reducing profits by 759 million yuan. The price of ores, coal, alloys, scrap and other raw fuels increased, reducing profits by 824 million yuan; Steel sales volume increased by 4.41% year on year, increasing profit by 100 million yuan; The reduction of process costs and the reduction of expenses added 724 million yuan. In addition, steel giant baosteel's previously disclosed third quarter report showed that baosteel's operating revenue in the first three quarters of this year totaled 216.876 billion yuan, down 3.75% year on year. Net profit was 8.874 billion yuan, down 43.65% year on year; Net cash flow of structural steel pipe from operating activities was 19.595 billion yuan, down 46.68% year on year.

How to look at galvanized steel pipe used for frame scaffolding

Generally speaking, frame scaffolding is one of the most common types of scaffolding, often seen on construction sites worldwide. Typically the frame scaffolding is manufactured from round steel tube, available in several different configurations, from a section that contains both a ladder and a walk-through portal to sections that are totally walk-through and sections that resemble a ladder. The typical method of constructing frame scaffolding is to use two sections of the scaffold frame connected by two crossed sections of support poles arranged in a square configuration.

Galvanized steel pipe generally has the rational cost effective in the market. Compared with other typical steel pipe coatings, such as specialized painting and powder coating, galvanization is much more labor-intensive, resulting in a higher initial cost for contractors. Besides, due to its durability and anti-corrosive properties, galvanized steel pipe can recycled and reused, which to some degree save a lot of money during the post maintenance work. If you choose a galvanized pipe, you can avoid the cost of maintaining and replacing corroded pipes. With galvanized pipe, your pipes can last a lot longer than a non galvanized one, which will save you a lot of money in the project.

Unlike other structural steel materials, galvanized steel is immediately ready for use when it is delivered. No additional preparation of the surface is required, no time-consuming inspections, additional painting or coatings are needed. Once the structure is assembled, contractors can immediately begin the next stage of construction without having to worry about the galvanized steel materials. In the majority of cases, China hollow section tube are widely used for frame scaffolding is in good condition and erected properly, it will provide a stable elevated work platform at virtually any height so that workers can easily and safely work anytime.

Today, there are many different types of scaffolding in construction. Compared with other typical steel pipe coatings, such as specialized painting and powder coating, galvanization is much more labor-intensive, resulting in a higher initial cost for contractors. Besides, due to its durability and anti-corrosive properties, galvanized steel pipe can recycled and reused, which to some degree save a lot of money during the post maintenance work. Hot dipped galvanized pipe has been considered popular a lot among many users today. With the layer of protection, this kind of steel pipes can be used in outdoor areas, and can withstand the harm from some of the environmental effects, which are especially used in construction today.

Why does galvanized steel pipe become so popular today

At present, more and more building owners, designers, architects, and general contractors have opted for galvanized steel pipe in commercial construction projects over other materials mainly for its energy efficiency, low maintenance, and durability. Besides, some other key attributes, such as striking beauty, clean look, and versatility in both new and retrofit construction are becoming helpful to firmly establish galvanized steel pipe as the material of choice for institutional, commercial and education building projects. So why are galvanized steel pipe becoming more popular, year after year? Let’s take a look at some of the advantages and then you’ll see why you should use galvanized steel pipe for your next building projects!

First of all, galvanized steel pipe has the rational cost effective compared with other types of structural steel pipes in the market. Compared with other typical steel pipe coatings, such as specialized painting and powder coating, galvanization is much more labor-intensive, resulting in a higher initial cost for contractors. Besides, due to its durability and anti-corrosive properties, galvanized steel pipe can recycled and reused, which to some degree save a lot of money during the post maintenance work. Unlike other structural steel materials, galvanized steel is immediately ready for use when it is delivered. No additional preparation of the surface is required, no time-consuming inspections, additional painting or coatings are needed. Once the structure is assembled, contractors can immediately begin the next stage of construction without having to worry about the galvanized steel materials. If you choose a galvanized pipe, you can avoid the cost of maintaining and replacing corroded pipes. With galvanized pipe, your pipes can last a lot longer than a non galvanized one, which will save you a lot of money in the project.

Hot dipped galvanized steel pipe has been considered popular a lot among many users today. For one thing, the galvanization process protects the steel from rusting damage that can occur during transportation, installation and service. The zinc layer on the surface of pipe can form a barrier protection for steel products to extend the service life in applications. For the other thing, this layer is also resistant to wear and scratch, which makes the steel look more attractive. With the layer of protection, pipes can be used in outdoor areas, and can withstand the harm from some of the environmental effects.

In addition, there is another important factor that make galvanized steel pipe so popular today. Galvanized steel pipe is considered as a kind of recycled product, and any waste along with end-of-life steel building materials can be recycled. Other advantages of using galvanized steel pipe in your project include energy-efficiency, durability, and resistance to water, fire and insect damage. DongPengBoDa Steel Pipe Group is a professional steel pipe manufacturer in China. We are specialized in providing various types of steel pipe for your choice. Contact us if you have any need！