Problems in China's valve industry need attention

The valve industry in China has developed rapidly in recent years, with a substantial increase in sales. Last year, the total import and export volume of China's valve industry reached 24.1 billion US dollars, with a year-on-year growth of 28.2%, of which the total export volume was 22.4 billion US dollars, with a year-on-year growth of 29.3%; The total import volume was USD 20134 million, with a year-on-year growth of 27%. With the continuous development of the valve industry, there are a series of problems that need attention.

Problems in China's valve industry need attention

1. Price war makes it difficult for enterprises to survive. Since there are many enterprises engaged in valve production and the competition is extremely fierce, it is very normal to fight a price war. Most enterprises take the initiative to reduce the price of their products to increase their market share. Long term price war leads to low profits of valve enterprises, which can only maintain normal production. It is difficult to make money. With the sales volume increasing, the total final sales volume and corporate profits of * * show a downward trend.

2. The technical level restricts the R&D and production of enterprises. The domestic valve production is mainly medium and low-grade products, lacking its own core technology. The low level of science and technology directly affects the research and development of high-end valves. Most valve enterprises produce low-end universal valves, and there is homogeneity between products. Similar products aggravate the competition between enterprises. At present, the valves produced by the enterprises have problems such as internal leakage, external leakage, low quality and short service life. Some products still remain at the international level in the early 1980s, and key devices cannot be independently researched and developed, so they need to be imported.

3. Exchange rate risk affects valve export profit. In order to avoid the price war among domestic valve enterprises, many valves have been exported in order to obtain a certain production space, but export is not an effective way to solve the current problems of valve enterprises. Although many valve manufacturers seem to have a large number of exports, they still use domestic price war strategies, leading to intensified vicious competition. In export transactions, there are often dollars for settlement, and the exchange rate risk caused by the appreciation of the RMB makes valve enterprises miserable.

The valve enterprises in China are basically small family style workshops. The quality of valves produced is low, and there is still a certain gap with foreign enterprises. At present, the export of China's valve enterprises is limited to some small international markets, such as Ethiopia, Sudan, Iran, Iraq and some Southeast Asian markets. These markets are small in size, the decision-making process depends entirely on the price, and the profit margin is limited. If Chinese enterprises want to develop continuously in the future, the key is to increase the level of scientific research and produce products with their own core technologies, rather than blindly imitate production. Only high-quality and differentiated valves can enter the international market and obtain large export profits.