The rising price and low cost of sanitary welded butterfly valves are the leading factors for profit increase

Increased prices and low costs of sanitary-grade welded butterfly valves are the leading factors for profit growth. The performance of sanitary welded butterfly valve manufacturers continues to advance in the context of capacity reduction. Rising prices and low costs of sanitary-grade welded butterfly valves are the leading factors for profit growth. 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 based on market conditions and strengthened internal management to reduce manufacturing costs. , To achieve better performance. This year, the country's severe crackdown on 'floor steel' has played an important role in the recovery of the stainless steel seamless pipe market. According to requirements, the intermediate frequency furnace for the production of stainless steel for construction must be dismantled before the end of June this year. The entire sanitary welding butterfly valve industry has enjoyed the dividends of the overcapacity reform. The industry is also concerned about the current huge profits in the stainless steel seamless pipe industry. The current profitability of stainless steel seamless pipes is the culmination of ten years and is not sustainable. Rising profits stimulated output growth, but demand is not optimistic. According to the stainless steel veteran network, the supply of hidden sanitary-grade welded butterfly valves is huge, and there is still room for the production capacity of key seamless pipe enterprises. According to industry insiders, once the national blast furnace capacity is opened at full capacity, it will be enough to fill the capacity gap after the intermediate frequency furnace is withdrawn. At present, the output of sanitary welded butterfly valves has gradually increased. Weak demand will put pressure on the profitability of stainless steel seamless pipe companies. The continued overcapacity, the increase in the inventory of sanitary-grade welded butterfly valves at the beginning of the year, and the slight slowdown in domestic demand, these factors will jointly suppress the price of stainless steel seamless pipes that have reached a 4-year high. At the same time, the high price of raw materials and the reduction in exports will also affect stainless steel. Seamless management of corporate profits creates pressure. Real estate investment is the biggest driving force for domestic demand for sanitary welded butterfly valves. With the tightening of policies to curb the rise in housing prices of sanitary-grade welded butterfly valves, real estate investment may slow down this year, so domestic consumption of sanitary-grade welded butterfly valves will decline.