China's valve manufacturing industry market status and trend analysis in 2019

valve is a control component in a fluid delivery system, and has functions such as cutoff, adjustment, diversion, prevention of backflow, voltage stabilization, shunting, or pressure relief. valves for fluid control systems range from the simplest globe valves to the various valves used in extremely complex automatic control systems. valves can be used to control the flow of various types of fluids such as air, water, steam, various corrosive media, muds, oils, liquid metals and radioactive media.

valves can be divided into industrial control valves and civilian valves. Industrial control valves are mainly used to adjust process parameters such as medium flow, pressure, temperature, and liquid level in the field of industrial automation process control. According to different classification standards, industrial control valves can be divided into different types:

(1) According to the regulation form, it can be divided into regulating type, cutting type, regulating cutting type;

(2) According to the material of the valve body, it can be divided into metal type, non-metal type, and metal valve body lining type;

(3) According to the driving mode, it can be divided into electric type, pneumatic type, hydraulic type and manual type;

(4) According to the temperature range, it can be divided into ultra-low temperature valve, low temperature valve, normal temperature valve, intermediate temperature valve, high temperature valve;

(5) According to the pressure range, it can be divided into vacuum valve, low pressure valve, medium pressure valve, high pressure valve and ultra high pressure valve.

It is expected that in the next few years, with the rapid development of our economy and the improvement of industrial automation, the transformation and upgrade of China's equipment manufacturing industry, and the state's continued investment in oil and gas, petrochemical, environmental protection, power, metallurgy and other fields, China controls The overall size of the valve market will maintain rapid growth.
Among the global market demand for industrial valves, the petroleum and natural gas fields, including drilling, transportation and petrochemicals, account for the highest proportion, reaching 37.40%, followed by the demand in the field of energy, power, and chemicals, which account for 21.30% of the global industrial valve market demand and 11.50%, the total market demand in the first three areas accounts for 70.20% of the total market demand. In the field of domestic industrial valve applications, the chemical, energy and oil and gas industries are also the most important markets for valve sales. The market demand for their valves accounts for 25.70%, 20.10%, and 14.70% of the total domestic valve market demand, respectively. It accounts for 60.50% of the total market demand.

 

                                        Statistics of China's Industrial Valve Market Demand Structure

Analysis and forecast of China's valve industry output in 2019

According to the statistics of the "Forecast and Analysis of China's valve Manufacturing Industry's Production and Sales Demand Forecast and Analysis of Transformation and Upgrade" released by the Foresight Industry Research Institute, China's valve output in 2017 has reached 7.86 million tons, a year-on-year increase of 2.77%. As of the first half of 2018, China's valve imports were 51.126 million sets, a year-on-year increase of 25.1%. In the first half of the year, China's valve import value was 3632 million US dollars, a year-on-year decrease of 0.5%. It is predicted that China's valve output will reach 8.3 million tons in 2019, and the average annual compound growth rate in the next five years (2019-2023) will be about 3.02%, and that China's valve output will reach 9.35 million tons in 2023.

 

                                    Analysis of favorable factors for the development of China's valve industry

1. The "13th Five-Year Plan" for nuclear power will drive the market demand for nuclear power valves.

Nuclear power is recognized as a clean energy. With the development of nuclear power technology, its safety and economy have been improved, and it is gradually being respected. Nuclear power valve is a large amount of equipment used in nuclear power projects. With the rapid development of the industry, the demand for nuclear power valves will continue to expand.

According to documents such as the “Thirteenth Five-Year Plan for the Development of the Nuclear Industry” and other documents, by 2020, the installed capacity of nuclear power operations will reach 40 million kilowatts; the annual nuclear power generation capacity will reach 260-280 billion kilowatt hours. On the basis of the nuclear power capacity under construction and operation of 16.968 million kilowatts, the newly-installed nuclear power installed capacity is about 23 million kilowatts. At the same time, considering the subsequent development of nuclear power, the nuclear power capacity under construction by the end of 2020 should remain around 18 million kilowatts.

2.The market demand for petrochemical special valves, ultra-low temperature valves and other products is broad

China's petroleum and petrochemical industry is developing in the direction of large-scale and large-scale development. It will continue to maintain sustainable development in the next 5 years. Dozens of sets of 10 million-ton refinery units and million-ton ethylene plants are facing new construction and expansion. The petrochemical industry is facing transformation and upgrading. There are many energy-saving and environmental protection projects such as hydrogenation and upgrading, and three waste recycling. It has become a new market space for petrochemical valves, flanges and forgings.

With the popularization and application of clean energy, the widespread use of liquefied natural gas (LNG) will be further emphasized, and the demand for ultra-low temperature valves will also increase significantly. China's long-term dependence on the import of key valves for super (super) critical thermal power units has not only increased the cost of electric power construction, but is also not conducive to the technological progress of domestic valve manufacturing. With regard to large-scale gas turbines, the state is also investing large manpower and financial resources to encourage introduction, digestion, absorption and innovation, and to change the situation of large-scale gas turbines and their key equipment relying on imports. In this context, petrochemical special valves, ultra-low temperature valves, vacuum butterfly valves for super (super) critical thermal power units, large gas turbine steam reheat valves and other products will face a broader market demand.

3. The mid-range industrial valve market is more mature

The main products of the mid-end industrial valve market are industrial valves with a relatively relaxed environment, generally carbon steel or stainless steel valves. The market demand for valve products facing this market is high, and they need to meet industrial quality requirements and high technical content. And end customers generally set up qualified supplier qualifications, so there are certain barriers to entry in the industry, the level of competition is lower than the low-end industrial valve and civilian valve market, and the profit level is higher. Some large enterprises in China's valve industry have entered the international market earlier, are more mature in production technology and production technology, and have established a more stable cooperative relationship with many international customers. The level of valve production has been greatly improved. The output of valves has also increased significantly, and has already occupied a relatively important position in the mid-range valve market, with a certain basis for revitalization.