Review of China's valve trade in 2010

Spring River plumbing duck prophet. As an individual unit of foreign trade import and export, enterprises are feeling the warmth of foreign trade rejuvenation.

From January to May, the export volume of Jiangsu Henglong Import & Export Co., Ltd., a leading textile company in Jiangsu, increased by nearly 5% year-on-year. The order situation in the first half of the year also improved.

Shanghai Shanbai Automatic Control Instrument Co., Ltd., the largest manufacturer of industrial regulating valves in the country, has begun to recover from the Spring Festival. Enterprises are benefiting from the long-term development trend of the world economy and energy industry.

The peak and the turn, the unprecedented hard trade "winter" is becoming a thing of the past

In the first half of 2010, the recovery trend of China's foreign trade continued to consolidate, and a rising curve of “low level and high growth” was achieved: the import and export volume in January was initially restored to the same level in 2008; the Shanghai regulating valve was pneumatically adjusted from February to June. The monthly increase in valve import and export reached 45.2%, 42.8%, 39.4%, 48.4%, and 39.2%, respectively. Customs data released on the 10th showed that the total value of imports and exports in June reached 254.77 billion US dollars, setting a new record in July 2008, a record high.

As a weather vane of foreign trade trends, the port ushered in a long-lost bustling.

Shanghai Port Container Throughput Since the highest level in August 2008, the self-operated regulating valve achieved its second historical high in May 2010. Qingdao Port has completed a total throughput of 142.42 million tons, of which the foreign trade throughput was 10.814.4 million tons, an increase of 22.5%. In June, Qingdao Port locked in millions of shipping companies such as Maersk, Mediterranean, Evergreen, and electric control valves opened two new Southeast Asian routes.

Zhang Xiaoji, a researcher at the Foreign Economic Research Department of the Development Research Center of the State Council, believes that China's foreign trade has come out of a trough, and the recovery has benefited from three factors: First, the world economy is recovering, external demand is growing, and foreign stocks are being replenished; second, the base number was lower in the same period last year. In the first half of 2010, foreign trade growth remained at a relatively high level. Third, China’s growth in non-traditional export markets, such as ASEAN, Brazil and India, became the main driving force for this export growth.

"China's mechanical and electrical products and traditional commodities still have great competitive advantages in the world. In the same period of 2009, exports were greatly affected by the financial crisis, and now recovery growth is an inevitable phenomenon." National Development and Reform Commission Foreign Economic Research Institute Deputy Director Bi Jiyao said.

In addition, China imported 649.79 billion US dollars in the first half of the year, an increase of 52.7%. Among the imported commodities, the import volume of major bulk commodities has increased to varying degrees. Imported mechanical and electrical products reached US$302.64 billion, an increase of 45.5%, of which 387,000 vehicles were imported, an increase of 1.7 times.

The trade surplus has gradually narrowed, and the basic development of foreign trade has become the key word for the overall situation of China's foreign trade in the first half of the year. According to customs data, China’s trade surplus in the first half of the year was US$55.3 billion, a decrease of 42.5%.

Bi Jiyao expects that the total scale of China's imports and exports in 2010 will exceed 5% to 10% in 2008. Compared with last year, the trade surplus will be reduced by 20 billion US dollars.

Internal and external difficulties, the export industry chain needs to be moved up

Foreign trade imports and exports that are accelerating recovery are not all the way.

In the first half of the year, changes in the external environment such as the European debt crisis and trade friction have led to a significant increase in the uncertainty of foreign trade trends. The overlapping effects of labor price increases, export tax rebates, exchange rate changes and other factors have also caused some foreign trade companies to “kick a sweat”. The road to China's foreign trade development is still difficult and difficult.

"The export of enterprises in the second half of the year is not optimistic, and the growth rate of exports will gradually narrow. The whole year is high and low." Yu Min, the person in charge of Suzhou Hengrun Import and Export Co., Ltd., said that he was burdened. He told the author that the consumer demand in the US and Japan market has not improved fundamentally. The EU market, which accounts for one-third of the company's exports, is gradually deteriorating. The domestic cotton yarn and other raw materials and labor costs have increased by 30% and 40% respectively since the end of last year. In addition, the RMB Changes in the exchange rate have also brought great operational pressures to labor-intensive, low-profit industries such as textiles and clothing.

Due to the high technical difficulties and discriminatory treatment, Yao Wei, deputy general manager of Neway Valve Co., Ltd., is worried about this. “In the first half of the year, corporate orders have not recovered to the pre-crisis level in 2008, and there has been repeated and discontinuous order recovery. It is still the most difficult time for enterprises, and short-term exchange rate pressures and other issues will become a shock.” Yao He said.

The United States has recently implemented trade restrictions on Chinese products, and “Made in China” is becoming the biggest victim of protectionism. From June 19 to 30, in just over 10 days, the United States and Europe have successively imposed sanctions on Chinese exports, and the frequency is unexpected. Zhang Yansheng, director of the Institute of Foreign Economic Research of the National Development and Reform Commission, believes that in the entire global division of labor industry chain, "Made in China" often only completes the final packaging and plastics process. China has received very little profit, but it has left the impression that “cheese is taken away by China”. This is the embarrassment that Chinese manufacturing faces in the international market.

How to seek a reasonable position of "Made in China" from the upstream. In the short term, it is imperative to create a relatively stable policy expectation environment for foreign trade development. In the long run, China's foreign trade must change its development mode and grasp the international pricing power. Zhang Yansheng said.

Quickly turn around and re-layout in a complicated situation

Opportunities are often accompanied by crises.

In order to consolidate the existing exports and increase the import intensity, Ding Jianping, the general manager of Zhejiang Xinwei Import and Export Co., Ltd., can make a total solution: expand the scope of business, start exporting equipment for the elderly to Europe and other places, and set up a company in Shanghai to import chemical raw materials. Business, preparing to open exhibitions and tourism companies, and using the zero-tariff discount of the ASEAN Free Trade Zone to import more resource products from ASEAN.

It is difficult to know how to do it. After a hundred years of ignoring the financial crisis, China’s foreign trade is moving around and turning quickly.

The official launch of the China-ASEAN Free Trade Area and China's development of emerging markets such as Brazil and India have become the main driving force for this foreign trade growth and a new growth point for China's foreign trade in the future. In June, ASEAN, with its weak disadvantage, stayed in Japan and became China's fourth largest trading partner; Brazil jumped to China's tenth largest trading partner.

“The financial crisis has affected emerging markets, but their economic recovery is very fast, and they are in the stage of accelerating industrialization. Expanding trade with these markets can give China an advantage.” Zhang Yansheng said.

In addition, China no longer satisfies the status of “two high and one low” world manufacturing plants, and successively adjusts and cancels export tax rebates to promote the transformation and upgrading of processing trade. These efforts are all aimed at realizing the three transformations of China's foreign trade: from the low-end of international division of labor to the middle and high-end, from the acceptance of established rules to more active participation in the formulation of rules, from quantitative expansion to qualitative improvement.

In the "Research on China's Foreign Trade Development Strategy in the Post-Crisis Era", the Ministry of Commerce pointed out that in order to promote economic growth, China's foreign trade development will achieve a doubling of total import and export trade in the next 20 years and become a trade power in the next 20 years.

“China has a number of world-class multinational companies and a large number of small and medium-sized multinational companies, and strives to have four or five multinational companies entering the world's top 100 before 2015. In a decade, it has a number of world-class brands. "Strategic Research" pointed out.

The establishment of the first China-Pacific Economic and Trade Cooperation Zone in the European Union has recently taken place in Portugal, marking an important step in establishing a China-Korea Economic and Trade Cooperation Zone within the EU. Chinese enterprises have begun to move out of the country in a cluster and have entered the European Union to accelerate the transformation process of “Made in China” to “Made in the EU” and “Made in the World”.

There is no such thing as a thousand miles. Zhang Yansheng believes that in order to achieve the long-term goal of "a trade power", China's foreign trade needs to start from scratch, re-layout in various markets around the world, invest and build factories, produce and sell abroad, and establish its own parts export system, marketing channels and distribution. Base, establish its own global production system and division of labor system.

We are looking forward to China's valve foreign trade in the complex situation to re-form the layout, respond to new challenges and seek new breakthroughs, and grow stubbornly in constant competition.

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