China Valve Market Confronted with Great Outlet Pressure

From January to June 2013, the primary manufacturing base of China valve --Wenzhou whoes valves were exported reached 8109 batches, an increase of 0.61%, export value of $0.26 billion,down 2.98% year-on-year while its export value rose as high as 42% on January to June 2012. Two sets of data show an obvious contrast by comparison.

The analysts from the mechanical industry considered that there has been an increasingly fierce competition in the domestic valve market in recent years, especially in the low-end universal valves with relatively low technological threshold.Many valve companies survived through expanding its exports in succession on account of a serious phenomenon of product homogenization, excess capacity and a continued decline on the profit level.But the expansion of exports is not catholicon which solves the development dilemma of the valve industry.Some problems are inevitable to gradually emerge by seemingly glamorous export data: Many valve export enterprises follow the price war strategy of the domestic market for expanding their export share, which leads cutthroat competition to get  intensified; Valve exports are settled in dollars and the exchange rate risk caused by the appreciation of RMB gets worse and worse;Bad product quality from some of valve manufacturers damages the interests of the domestic trade and the image of China valve export for selling seconds at best quality prices. All these result in a continuous decline on export profits of the valve industry.

The world economic recovery still needs a slow process.The domestic valve industris are ought to positively cope with it and enhance the adaptability of risks in international trade on account of the fact that the demand for valves is greatly affected by the international economic environment.Don't also relax domestic market development  when in the expansion of exports. Capable enterprises can carry out industrial upgrading toward the high-end valve products such as oil, nuclear power and other national key fields of interest. The market potential that the imported valves subtitute for domestic valves can not be ignored while other small and medium valve enterprises limited by the technical barriers can consider emerging fields where there is a great demand for valves, strengthen engineering supporting capacity, and improve the value-added of valve products.

According to  "2013-2017 China valve market analysis and development research report" released by the valve industry research,it shows that China valve enterprises are facing the situation of increasing outlet pressure in 2013,which should strengthen technological innovation, turn from the expansion partial to scale and quantity to pay more attention to pursue quality and efficiency, and actively explore the domestic market to promote the sound development of China valve industry.