Unfavorable Factors of Developing Chinese Carbon Steel Flanges

 

1. As the major material of steel flanges, the carbon steel is urgent to transforming due to the increasing pressure currently. The steel industry may be in danger of underproducing. The reduction in production will lead the increasing price of steel in short time, so the cost of steel flange will also be raised. Therefore, the price of steel flange will be fluctuated and the steel flange industry will suffer a greater impact.

 

2. In recent years, Chinese steel flange industry has developed rapidly, not only the production levels have been greatly improved, but also the quantity of production. However, the embarrassing situation is that the SMEs and private enterprises grow fast and take relatively large parts in the market; on the contrary, the large enterprises are less and the competitiveness is lower. From the perspective of current development situation, carbon steel flange industry is also facing the risk of being eliminated.

 

3. Under the influence of financial crisis, the market of steel, construction and upstream & downstream industries have been declined which is undoubtedly a fatal impact on carbon steel flange industry. To some extent, the financial crisis have resulted negative influence to domestic steel flange industry, but the inner shortcomings have been revealed. Under the market economic system, the situation has been greatly improved.

 

4. Chinese carbon steel flange industry has a broad domestic market, but the export market is narrow. The Twelfth Five-Year Plan contributed to realizing the new road of industrialization development, under the direction of constructing resource-conserving society and environmentally friendly society. Due to the financial crisis, the decreasing domestic order and increasing material price promote the industrial reform of survival of the fittest; some backward production capacity has been ruled out and offered a better space for further development of carbon steel flange industry.