Analysis of Current Development of China's Valve Industry from the Perspective of Industry Chain

An industry is not a single development, it will form an industrial chain and interact with upstream and downstream factors that are related to it. Industrial chain is a concept that includes four dimensions: value chain, enterprise chain, supply and demand chain and space chain. This article will try to cut in from the perspective of industry chain and analyze the current development of China's valve industry. For ease of understanding, the author will discuss the following figure.

Upstream basic raw materials, this year's steel market in China is in an uptrend stage. Since mid-May, the market has gradually become cold. The industry's generally optimistic view of the 'golden nine silver ten' has not been as strong as expected in the entire steel market. vitality. In mid-November, the steel market rebounded due to an increase in the price of imported iron ore. However, with the expansion of the European debt crisis and the close of the year, the steel market that has recovered in the short-term has once again oscillated. As the steel market is cold at this stage, it is good news for the valve industry or for profit. However, due to the current market turnover in the steel market, market mentality gradually weakened, and the future market outlook is not clear, difficult to grasp, steel traders are expected to be in the future The wait-and-see status will continue to be maintained during the period of time, leading to a decline in stocks in the steel market, or pressure on the purchase of raw materials for the valve industry next year.

Due to various factors such as the use of production products, environmental impact, and medium influence, the types of rubber used in the valve industry are numerous. Here, the author uses the most common general-purpose synthetic rubber, styrene-butadiene rubber, as an example. .

Due to the sudden increase in the cost price of raw materials for styrene butadiene rubber in the previous period, styrene butadiene rubber continued to decline in November and rebounded bottomed out in the late period. Thus, the outlook for rubber products does not exclude the possibility of continued rise. Sex, the valve industry needs to pay close attention to prepare for next year's production.

In the downstream part, in terms of application prospects, with the continuous improvement of China's housing security system, the intensity of urban housing construction will continue to increase, and a large number of economically affordable housing, low-rent housing, limited-price housing, and public rental housing will start one after another. With the construction, the demand for urban housing valves will increase. In addition, the pace of urbanization in China has intensified, rural urbanization has gradually become the focus of social attention, for the valve industry, the expansion of the downstream terminal market will undoubtedly drive the sales of related valve products. At the same time, this year is the first year of the Twelfth Five-Year Plan. The state has invested in key areas such as chemical, thermal power, and natural gas to indirectly stimulate the development of the valve industry. It can be seen that the downstream of the valve industry will face many favorable factors in the future.

In terms of sales, the environment is good, and all valve companies need to be more active in seeking to broaden their sales channels. According to the author's observation, there are two trends in the downstream sales of the valve industry. One is from the city to the countryside, and the other is from the store to the electricity supplier. If the former is only an extension of space, the latter may be a change in the downstream distribution model. Because the breakthrough of e-commerce platform will not only be the problem of geographical restrictions, but also because of its rich information and features - for example, some sites launch 'quick purchase', and some provide 'offline exact matching' services, etc. - Will directly increase the speed and accuracy of product sales.

From the perspective of the industrial chain, the increase in the sales volume of downstream products, in turn, can promote the market demand for upstream supply, bring the entire industry to life, and promote the healthy and orderly development of related industries. Nowadays, as the depth of cooperation among various industries deepens, any problem can no longer be solved by 'singling it alone,' and it will affect the whole body. How to develop with a global perspective will be a need for joint thinking among all industries. The problem.