The Chinese steel pipe market is expected to face a difficult period of three to five years or even longer due to overcapacity, constrained profit margins and the daunting task of optimizing industry structure, as stated by Yan Zesheng, chairman of the steel pipe branch of the China Steel Structure Association, at a strategic development forum for the Chinese steel pipe industry held in Handan, Hebei Province.
According to the figures issued by the steel pipe branch of the China Steel Structure Association, from 2008 to 2012 China's aggregate steel pipe capacity increase totaled over 25 million mt. China's total steel pipe production capacity (including newly commissioned capacities and capacities under construction) has reached over 90 million mt. In 2011, total steel pipe output in China amounted to 66.98 million mt (including 26.49 million mt of seamless steel pipes and 40.49 million mt welded pipes), up 18.07 percent year on year.
In the first three quarters of this year, China's steel pipe output totaled 55.72 million mt, with an output increase of 11.71 percent year on year. China's total steel pipe output in 2012 is expected to indicate a rise of 11 percent year on year.