Valve Industry Watch Report 2022 edition
Under the guidance of the strategy of "manufacturing power", the transformation of the industry from a valve manufacturing power to a manufacturing power has increasingly mentioned the development agenda. Industry of Chinese valve in 2022: How about the overall level? What are the major enterprises? Is the market highly concentrated? What are the major export and import countries? What are the priorities for the future? And so on. With this series of issues concerned by the industry, on the basis of sorting out the relevant data of the industry in 2020 and 2021, Valve Journal releases the Valve Industry Observation Report 2022 edition (excerpt) in this period, with a total of 11 aspects for your reference.
1. Trend: At a major transition point
Our country's valve manufacturing industry is in a significant process of transition from low-end manufacturing to high-end, high performance, customization and intelligent manufacturing.
In the 1960s, the valve industry of our country began to start, before the 1980s, the development of the valve of our country is mainly modeled in technology from the former Soviet Union, the overall development level is not high. After the reform and opening up, the valve industry has accelerated the introduction, absorption and digestion of foreign advanced technology. After 2010, it has achieved rapid development and prosperity, greatly improved its own technology research and development capabilities, and become the world's first in the field of low-end valves.
Over the years of accumulation, the industry has accumulated considerable strength in technology, personnel, practice, capital, vision and other aspects. It can be said that at present, China's valve industry has the strength and cost of high-tech research and development. This also lets us carry out transformation and upgrading development to change the valve industry is not strong situation, not only "imperative", more "potential can do" confidence.
2. Scale: the world's largest valve country
In recent years, as the world's major valve producers such as Italy, Japan, South Korea and other countries have transferred to developing countries and regions, China has developed into the world's largest valve country, but also the world's main producer of low-end valves.
According to GIA and other data, the market size of the global valve manufacturing industry is 73.2 billion US dollars in 2020, and the output value of the whole ball valve is 76 billion US dollars in 2021. According to relevant data: by 2021, the annual output value of Chinese valve industry has been more than 210 billion yuan for many consecutive years, the industry growth rate of more than 6%; 8.3 million tons in 2019, 8.5 million tons in 2020 and 8.7 million tons in 2021.
In the global valve industry chain, the United States, Germany, Japan, France and Taiwan belong to the first echelon of comprehensive strength, whose valves occupy the high-end market of the industry, while the Chinese mainland is in the stage of making full progress to the first echelon.
3. Pattern: Initial formation of industrial clusters
After more than 40 years of reform and opening up the industry reshuffle, the industrial layout of our country's valve industry has been readjusted, and initially formed with Jiangsu, Zhejiang and Shanghai as the core area, Hebei, Liaoning and Henan places as auxiliary industry pattern.
By 2021, the number of Chinese valve manufacturers is estimated to be more than 10,000, with about 1800 enterprises of scale or above. Take Zhejiang, an important valve industrial base of our country as an example, there are thousands of valve enterprises in this province. China General Machinery Association about the release of the total industrial output value of the valve data show that the ranking of the top Newey shares, Jiangsu salt valve, Yuanda valve, Jiangsu Shantong, central nuclear Sue valve, Shanghai Guanlong, Henan high mountain valves and other industry head enterprises, all belong to Jiangsu, Zhejiang, Hebei, Henan and other Chinese valve industrial cluster in the region.
Famous valve production bases are: Zhejiang Yongjia County, Zhejiang Wenzhou Longwan District, Zhejiang Taizhou Yuhuan City, Fujian Nan 'an and so on.
4. Market: The industry market concentration is low
Chinese valve manufacturing industry market concentration is low, domestic leading enterprises compared with international giants still small volume.
The overall pattern of the valve market in our country is relatively dispersed, and the industry concentration ratio CR3 (the top three enterprises of industry scale) is lower than 5%. Large scale listed enterprises of domestic valve manufacturing enterprises mainly include Nuway Corporation, Jiangsu Nantong, China Nuclear Technology, etc. The market share of Neway, the largest, is only about 2%, and the scale effect and brand benefit of the industry are in urgent need of improvement.
The main reasons are capital input and product characteristics. In terms of capital investment, the proportion of valve products, especially the raw materials of low-end valves, steel accounts for about 85% of the operating cost, and the labor cost accounts for about 10%. The cost cannot be greatly reduced through large-scale production, so large enterprises do not have absolute advantages in terms of capital investment. In terms of product characteristics, there are universal valves and customized valves, customized valves in the field of market demand diversification, decentralization, small order characteristics, for the flexible operation of small enterprises to provide a living space.
5. Products: Products cover high, middle and low types
Chinese valve industry product line has covered high, middle and low three types, low-end products have cost-effective advantages, some high-end products have approached or reached the international advanced level.
From the product situation, valve manufacturing industry in our country currently can produce more than ten big products, such as gate valve, globe valve, ball valve, butterfly valve, safety valve, check valve, throttle valve, plug valve, pressure reducing valve, diaphragm valve, drain valve, emergency cut-off valve and so on. At present, the domestic valve production backbone enterprises have been able to design and manufacture all kinds of valves according to ISO international standards, DIN German standards, AWWA American standards and other international standards, and some of the manufacturers' products have reached the international advanced level.
6. Technology: Technological innovation is advancing steadily
Under the background of increasingly fierce game between great powers, the industry attaches more importance to research and development investment. In the past two years, the valve technology innovation capacity construction and domestic substitution work are commendable.
In 2020, to serve the "Hualong One" major nuclear power project, the company successfully developed the extended pit valve of the containment, the Harbin electric valve and the MSR pilot safety valve. In 2021, Zigong Xindi Pel Valve developed a large high-quality four-way circulation valve; In 2021, Ma Yushan, Party Secretary and chairman of Wuzhong Instrument, has become the only new academician of Chinese Academy of Engineering in our valve industry. These gratifying achievements are the typical display of valve technology research and development results in recent years.
7. Import and export: showing the characteristics of "low export and high import"
"Low export and high import" means that mid - and low-end products of our industry are dominant in the world market, while high-end products need to be imported. Because the technology level of the manufacturing industry of our country compares with the United States, Germany and other western developed countries is relatively backward, so the export valve of our country is mainly the medium and low-end valve, compared with the middle and high-end categories of our import, price level is low.
According to the General Administration of Customs, among the 6 categories of valves exported in our country in 2020, the most amount is "other valves, taps, taps and similar devices", a total export of 11.318 billion yuan, accounting for 71% of the total export value of valves; This was followed by oil or pneumatic valves, which accounted for 22% of exports, or $3.574 billion.
In terms of exports, total exports of valves and configuration products fell back to $16.051 billion in 2020. A large number of Chinese valve drive devices are mainly exported to the United States, Germany, the Russian Federation, Japan, the United Kingdom, South Korea and other countries, among which the export to the United States is the most, in 2020 to reach 3.453 billion dollars, accounting for 21.5%. China's valves and configuration products are mainly exported from Zhejiang, Guangdong, Jiangsu, Fujian and other places, among which Zhejiang Province is the largest, in 2020, the scale of valves and configuration products will reach 6.081 billion dollars, accounting for 37.9%.
In terms of imports, the import amount of valves and configuration products reached 8.866 billion US dollars in 2020, with a year-on-year growth of 2.35%. For a long time, China's high-tech, special equipment valve drive, domestic foundation is relatively weak special valve drive devices mainly rely on imports, mainly from Germany, Japan, the United States, Italy, South Korea and other countries, among which from Germany and Japan imports the largest scale, in 2020, up to $1.939 billion and $1.824 billion, respectively. Accounting for 21.9% and 20.6% of the total.
8. Listing: The main listed companies of the valve
At present, the valve industry listed companies have been listed in the Shanghai and Shenzhen stock markets, New Third board, Beijing Stock Exchange and other financial markets for financing.
The main listed companies on the Shanghai and Shenzhen stock markets are: Newey Stock (603699), China Nuclear Technology (000777), Weilong Stock (002871), Jiangsu Divong Stock (002438), Dawson Stock (603800), Chuanyi Stock (603100), Guangdong Mingzhu Stock (600382), Zhejiang Linuo Stock (300838). The main listed companies on the New Third Board and Beijing Stock Exchange are: South Valve (833678), Huvalve Holding (835141), Changfu Share (871396), Zhonghuan Share (836260), etc.
Our valve manufacturing industry listed companies, has formed a more obvious characteristics. For example, Nuway is mainly targeted at petrochemical industry and other fields, CNNC Technology is targeted at nuclear engineering, thermal power and other downstream application scenarios, while Jiangsu Shentong Valve's downstream industries are mainly metallurgy, nuclear power and other industries, Chuanyi Company is mainly targeted at control valves and smart valves and other aspects.
9. Downstream: oil, gas and chemical energy refining
Oil, natural gas industry, energy and refining industry valve demand is the industry's main downstream customers.
According to data released by Mcilvaine, the downstream industries of valve manufacturing include oil and gas, energy, refining industry, chemical industry, wastewater, paper, irrigation, steel, pharmaceutical and other industries. Among them, the valve demand of oil and natural gas industry is the largest, accounting for 17% in the downstream industry of valve manufacturing. The second and third industries are energy and refining industry, accounting for 14% and 13% respectively.
10. Competition: perfect market competition
The manufacturing industry of the valve in our country currently belongs to the mature period, the replacement risk is low, but there are many industry participants, the competition is fierce within the industry, belongs to the full competition market state.
The upstream of the industry is steel, copper and other metal raw materials market, which has serious market homogeneity and moderate bargaining power. In the middle stream of the industry, the technical barriers and capital barriers of the middle and low-end valve manufacturing industry are relatively low, so the threat of potential entrants is high. Downstream industry is energy, metallurgy, petrochemical and other national heavy industries, bargaining power is relatively moderate.
11. Future: Future tasks of valve industry
At present, the global valve manufacturing industry is in the industry transformation period. Under the impact of the fourth industrial revolution and the promotion of the new energy revolution, the transformation and development of the valve manufacturing industry will be accelerated.
It is expected that by 2025, that is, at the end of the 14th Five-Year Plan, the global output value of valves will reach about 90 billion dollars, and China's valve industry will gain greater development. It is suggested that the industry accelerate the pace of transformation in the spirit of seize the day and night, focusing on the following aspects of construction, first is to cultivate international large leading valve enterprises as the goal, through restructuring, merger and other ways, to grow bigger and stronger head enterprises, constantly improve the concentration of market, to seize the power of discourse of international valves; Second, continuously improve the intelligent manufacturing level of the industry, strengthen the development and innovation of intelligent valve products; Third, accelerate the upgrading of products and services, overall solutions and other aspects of construction; Fourth, Leck high performance, high-end valve technology difficulties, to achieve technological innovation and domestic substitution capacity leapfrog development.
