Li Maojing: Plotting a New "Competition and Cooperation" Situation for the Welded Steel Pipe Industry
May 29, Tianjin Youfa Steel Pipe Group Chairman Li Maozin pointed out that Daqiu Zhuang is China's earliest and largest welded steel pipe production base, known as the "China Welded Pipe Industry Base". The current main business is still metal processing manufacturing, mainly welded steel pipe manufacturing.
In 2024, the national welded steel pipe output was 60.507 million tons, a year-on-year decrease of 7.90%; the apparent consumption was 55.2788 million tons, a year-on-year decrease of 7.57%. Facing the current negative growth situation in welded steel pipe production, he analyzed the market situation:
First, the overall market is shrinking, and demand is growing in some areas. He pointed out that China's steel structure currently maintains an output of over 100 million tons, accounting for about 10% of crude steel output. According to the prediction of the China Steel Structure Association, by 2035, the application of steel structure buildings in China will reach the level of moderately developed countries, with steel structure usage reaching over 200 million tons per year, accounting for more than 25% of crude steel output, and the proportion of steel structure buildings in newly built building area gradually reaching about 40%. With the increasing proportion of steel structures in buildings, it will drive the continuous growth of the welded steel pipe industry in the steel structure field.
Second, macroeconomic policies continue to exert force. He said that since the end of September last year, with the country's introduction of a series of economic stimulus policies, such as May 15, the General Office of the CPC Central Committee and the General Office of the State Council issued "Opinions on Continuously Promoting Urban Renewal Actions", putting forward eight major tasks, including strengthening the transformation and utilization of existing buildings, promoting the renovation and transformation of old urban communities, promoting the renovation and transformation of old streets, old factories, and urban villages, improving urban functions, and strengthening the construction and transformation of urban infrastructure. Through renovation, upgrading and quality improvement to stabilize economic growth, this will increase the demand for various steel, steel structures and steel pipes.
Third, China is still the world's largest consumer market. After recent overseas layout research by Youfa Group, it was found that China's steel pipe production and sales volume is still the world's largest market.
He introduced that Youfa Steel Pipe has solved the operational and development difficulties of welded steel pipes by applying the "competitive cooperation concept". In April 2024, Yunnan Youfa Fangyuan Pipe Industry Co., Ltd., a joint venture between Youfa Group and Yunnan welded pipe enterprise Tonghai Fangyuan, officially started operation. This project, through the application of the "competitive cooperation concept", has opened up a win-win cooperation model of brand synergy, management improvement, technology sharing, and market complementarity, creating a sample of industry competition and cooperation. At present, this project has achieved a significant increase in production, sales, revenue, and profit year-on-year, achieving good economic benefits and demonstration effects.
He said that in the future, Youfa Group will adhere to its main business, attach importance to localized operation, insist on quality to build brands, focus on management innovation, and seek future development through competitive cooperation.
