Analysis Of My Country's Valve Industry From The Perspective Of The Industrial Chain

An industry does not develop in a single way. It will form an industrial chain with its associated upstream and downstream factors, and interact with each other. The industrial chain is a concept that includes four dimensions: value chain, enterprise chain, supply and demand chain, and space chain. This article will try to cut in from the perspective of the industrial chain and briefly analyze the current development of my country's valve industry.
In terms of upstream basic raw materials, my country's steel market was in a volatile upward stage in the early stage this year. Since mid-May, the market has gradually cooled down. The "Golden September and Silver October" months that the industry generally favors did not inject strong vitality into the entire steel market as expected. In mid-November, the steel market rebounded for a short time due to the rise in imported iron ore prices, but with the expansion of the impact of the European debt crisis and the approaching year-end, the short-term rebound in the steel market has fluctuated downward again. Due to the current cold steel market, it may be good news for the Lined Valve industry, but due to the current flat market transactions in the steel market, the market mentality has gradually weakened, and the future market prospects are not clear and difficult to grasp, it is expected that steel traders will continue to wait and see for some time in the future, resulting in a decline in steel market inventory, or increasing pressure on the purchase of raw materials for the valve industry next year.
Since it is necessary to consider the use of the products, environmental impact, medium impact and other factors, there are many types of rubber used in the valve industry. Here, the author takes the general synthetic rubber with the largest output, styrene-butadiene rubber, as an example.
Due to the sudden increase in the cost price of the upstream raw materials of styrene-butadiene rubber some time ago, styrene-butadiene rubber rebounded in the second half of the month after a continuous decline in November. Therefore, the possibility of continued rise in the future of rubber products cannot be ruled out. The valve industry needs to pay close attention and prepare for production next year.
In the downstream part, in terms of application prospects, with the continuous improvement of my country's housing security system, the intensity of urban housing construction will continue to increase. A large number of affordable housing, low-rent housing, price-limited housing and public rental housing will be started one after another, and the demand for valves for urban housing will increase. In addition, the pace of urbanization in my country has intensified, and rural urbanization has gradually become the focus of social attention. For the valve industry, the expansion of the downstream terminal market will undoubtedly drive the sales of related valve products. At the same time, this year is the first year of the "12th Five-Year Plan". The country has increased its investment in key areas such as chemical industry, thermal power, and natural gas, which indirectly stimulates the development of the valve industry. It can be seen that the downstream of the valve industry will face many favorable factors in the future.
In terms of sales, the overall environment is favorable, and valve companies need to be more actively looking for ways to expand market sales channels. According to the author's observation, there are currently two trends in the downstream sales of the valve industry, one is from cities to rural areas, and the other is from stores to e-commerce. If the former is just a spatial extension, the latter may be a change in the downstream distribution model. Because the e-commerce platform will not only break through the problem of geographical restrictions, but also because of its rich information and functions-for example, some websites have launched "quick procurement", and some provide "offline precise matching" services, etc.-it will directly improve the speed and accuracy of product sales.
From the perspective of the industrial chain, the increase in the sales volume of downstream products can in turn promote the market demand for upstream supply, bring vitality to the entire industry, and promote the healthy and orderly development of related industries. Nowadays, as the degree of cooperation among various industries gradually deepens, any problem can no longer be solved by "fighting alone". One hair can move the whole body. How to develop with a global perspective will be a problem that all industries need to think about together.