Steady Growth Investment in the Iron and Steel Industry Should Be Built Inside and Outside

Steady Growth in the Iron and Steel Industry Investment should be Internal and External A few days ago, the profit of China's steel production in 2012 was one high and one low. The growth in demand for the steel market slowed down and the ceiling for excess capacity was already within reach. At present, China’s steel industry is facing a severe test. From the perspective of the international environment, the international financial crisis has a far-reaching impact, the world’s economic environment is severely complicated, and the recovery has been a long and arduous one. From the perspective of demand for steel products, the growth rate of investment in fixed assets has declined significantly. The "winter" of China's steel industry has come, and the development of iron and steel enterprises in the later period of industrialization should be "advanced to internal control."

According to statistics, in recent years, there are about 200,000 steel trading companies in China, of which more than 60% have an annual turnover of less than 5 million yuan, and more than 90% of steel trading companies are in the SME category. According to the marketing statistics of key large and medium-sized enterprises' steel products, the main sales methods for steel products in China are direct supply, steel market sales and exports.

From January to November, China produced 660 million tons of crude steel. It is estimated that the annual steel production will be around 720 million tons. According to relevant statistics, China’s steel production capacity is about 900 million tons, while consumption is only about 670 million tons. Supply exceeds demand. The situation is more serious. It is difficult to increase steel consumption significantly next year, and the situation of oversupply will not change much.

At present, China's iron and steel industry has a huge capacity, and irrational expansion capacity still exists. According to preliminary statistics, steel production capacity is expected to increase by 8% in 2013 and the excess pressure will further increase. From this perspective, the internal environment of the iron and steel industry has not yet shown signs of obvious improvement.

At the same time, however, the external environment of the steel industry has gradually warmed up, bringing a glimmer of hope to the steel industry, which is undergoing a difficult transition in the bottom. The iron and steel industry must firmly seize this rare opportunity to improve the quality of its operations and prepare for deeper structural adjustments.

Demand focus: policy-based steady growth investment Since 2009, the downturn of the steel industry, in addition to the cause of excess capacity, has largely come from a significant decline in macroeconomic growth. From January to November this year, China's investment growth rate was 20.7%, which was 3.8 percentage points lower than the same period of last year and 4.2% lower than the previous year.

The situation got better in the second half. Since July, the inventory of manufacturing raw materials has risen month by month. In November, it was again higher than the monthly average of 2012 raw material inventory, indicating that the manufacturing market is expected to improve. From January to November, the growth rate of investment in manufacturing remained stable, with only a slight decline in the past two months. The cumulative annual growth rate slipped from 24.8% in March to 22.8% in November. Some industries also rose. Among them, investment in special equipment manufacturing increased 9.2 percentage points over the same period of 2011. In addition, from January to November, the management of water conservancy, environment, and public facilities increased by 17.2% year-on-year, 2% higher than the same period of last year.

According to the latest report issued by the World Bank, in 2013, China's economic growth rate could reach 8.4%, driven by the acceleration of fiscal stimulus and large-scale investment projects.

The Central Economic Work Conference put forward: “The relationship between maintaining a stable and rapid economic development, adjusting the economic structure, and managing inflation expectations is correctly handled.” In the six major tasks, there is no mention of controlling inflation, and it is clear that steady growth will be given top priority. signal. Among them, the significant decline in economic growth is a major cause, and the reduction in inflationary pressures is also an important support factor. The recovery of China’s overall economic growth is expected to partially improve the external environment of the steel industry.

Zhang Ping, director of the National Development and Reform Commission, said on December 18 that next year will play a key role of investment in economic growth. In 2013, the central budget will invest mainly in areas such as affordable housing and urban infrastructure, agriculture, rural areas, energy conservation and emission reduction, and ecological environmental protection, independent innovation and structural adjustment, and underdeveloped regions. The National Development and Reform Commission approved a large number of infrastructure construction and energy grid construction projects in December, mainly in the central and western regions. According to analysis by the Investment Research Institute of the National Development and Reform Commission, investment growth in 2013 will exceed 2012, reaching about 24%. If the growth rate of investment can indeed reach this level, then the external environment of the steel industry will be much better than this year.

The Central Economic Work Conference also pointed out that we must implement a proactive fiscal policy, improve the structural tax cuts in line with the taxation reform, maintain a moderate increase in the number of people, keep the exchange rate basically stable, and effectively reduce the cost of real economic development. On December 19, the Ministry of Finance and the National Development and Reform Commission announced the abolition or reduction of 30 administrative fees. Structural tax cuts have taken off. We believe that the reduction in market costs will effectively drive the momentum of small enterprises and social investment.

Exports focus on: Market trends in Asia and the United States According to the latest statistical data, from January to November, China exported 5,087,900 tons of steel, an increase of 12.67% year-on-year; exported 5,182,200 tons of that month, setting a new high of the same period since 2009, and 2012 Monthly export changes are relatively stable, and the export situation is relatively stable. According to previous years' experience, the export volume in the last two months has basically remained stable. The total steel export volume in China for the whole year is about 55 million tons. From January to November, the largest market for steel exports in China was ASEAN, which accounted for 26.22%, and cumulative exports for 11 months increased by 48.63%. In the same period, China’s steel exports to the Middle East, the United States, and Africa all showed a significant increase. The cumulative increase in steel exports to the United States was 31.54%, indicating that the US recovery was relatively strong. The decline is more evident in the EU. From January to November, China’s steel exports to the EU-27 fell by 32.19%.

From the perspective of the major economies in the world, the recovery in the United States is relatively stable. By December, the unemployment rate has dropped to 7.7%, a 2.5 percentage point drop from the high point of the unemployment rate in the past three years. The unemployment rate in major European countries rose month by month, with Germany’s unemployment rate reaching 6.9% in October and rising for seven consecutive months. France’s unemployment rate in the third quarter was as high as 10.3%, the highest since 1999; Spain The unemployment rate in the third quarter of countries such as Greece and Greece exceeded 25%. On the whole, the export prospects of EU countries are quite bleak. Therefore, in the future, China's steel exports should mainly focus on the Asian and US markets, while in the Asian market, cooperation with ASEAN must be strengthened in particular.

Long-term focus: Opportunities brought by urbanization In the short term, the most important user industry of steel—the real estate industry is still relatively balanced. In the next few years, the development of the real estate industry will remain an indispensable pillar of domestic economic development. Although the real estate industry has been decelerating for three consecutive years this year, the cumulative increase in real estate investment has shown a monthly increase since July and has increased by 1.3 percentage points in five months, indicating that real estate investment has stabilized. Judging from the tone of the continued strengthening of real estate control that was passed on the Central Economic Work Conference, real estate investment in 2013 will remain stable and there will be no significant rebound. On December 25, the Ministry of Housing and Construction stated that next year it will continue to strictly implement differentiated housing credit, taxation policies, and purchase restriction measures, and resolutely curb the demand for speculative investment housing.

In the next few years, the focus of the steel industry will be mainly on urbanization. The Central Economic Work Conference proposed that urbanization is the historical task of China’s modernization and the greatest potential for expanding domestic demand. The year of 2013 is the first year after the *** convening, and urbanization and economic restructuring will be an important direction for macroeconomic regulation and control.

The promotion of urbanization means the development of urban and rural infrastructure. At present, the first draft of the "Plan for Promoting the Healthy Development of Urbanization (2011-2020)" led by the National Development and Reform Commission has been completed. The plan states that "urbanization will boost 40 trillion yuan in investment in the next 10 years." The plans for the construction of urbanization systems in various places have also been released one after another, among which urban infrastructure construction bears the brunt. Urban infrastructure construction is led by housing construction, various pipeline network construction, urban transportation and power grid project construction. The NDRC's investment approval this year has shown this feature. In the next few years, the construction, renewal, and transformation of urban infrastructure will be the most important investment direction. The government will improve the conditions of the public sector and provide a huge space for residential, commercial, and industrial development. The property of real estate as an investment product will gradually diminish with the large-scale advancement of urbanization.

Luo Baihui pointed out that after the “cold weather” of 2012, China’s economic and investment growth rate is expected to bottom out, thus partially alleviating the contradiction between supply and demand that the steel industry currently faces.

However, under the pressure of huge production capacity, the situation of oversupply cannot be fundamentally improved in the short term. The iron and steel industry is still facing a fierce competitive environment in the context of high output in the coming years.

“The bright spots at the demand level not only can ease the pressure of supply and demand to a certain extent, but more importantly, it gives steel companies the opportunity to accurately grasp the competition situation and do their homework for improvement in variety, quality, and service.” Luo Baihui believes that in this low interest In the period, iron and steel enterprises should develop with the improvement of the quality of steel products, cautious treatment of scale expansion and relocation projects, and development of international development projects.

“The important strategic opportunities for China’s development have undergone great changes in the connotations and conditions of the international environment. The opportunities we face are no longer the traditional opportunities for simple integration into the global system of division of labor, expansion of exports, and accelerating investment, but rather force us to expand. New opportunities for domestic demand, improving innovation capabilities, and promoting the transformation of economic development methods.We must profoundly understand, firmly seize, and make effective use of such new opportunities, take advantage of the situation, follow the trend, and strive to seek greater opportunities in an ever-changing international environment. The national interest," says Luo Baihui.

Check Valves

A ball check valve is a check valve in which the closing member, the movable part to block the flow, is a spherical ball. In some ball check Valves, the ball is spring-loaded to help keep it shut. For those designs without a spring, reverse flow is required to move the ball toward the seat and create a seal. The interior surface of the main seats of ball check valves are more or less conically-tapered to guide the ball into the seat and form a positive seal when stopping reverse flow.

Ball check valves are often very small, simple, and cheap. They are commonly used in liquid or gel minipump dispenser spigots, spray devices, some rubber bulbs for pumping air, etc., manual air pumps and some other pumps, and refillable dispensing syringes. Although the balls are most often made of metal, they can be made of other materials, or in some specialized cases out of artificial ruby. High pressure HPLC pumps and similar applications commonly use small inlet and outlet ball check valves with both balls and seats made of artificial ruby, for both hardness and chemical resistance. After prolonged use, such check valves can eventually wear out or the seat can develop a crack, requiring replacement. Therefore, such valves are made to be replaceable, sometimes placed in a small plastic body tightly-fitted inside a metal fitting which can withstand high pressure and which is screwed into the pump head.

There are similar check valves where the disc is not a ball, but some other shape, such as a poppet energized by a spring. Ball check valves should not be confused with Ball Valves, which is a different type of valve in which a ball acts as a controllable rotor to stop or direct flow.

A diaphragm check valve uses a flexing rubber diaphragm positioned to create a normally-closed valve. Pressure on the upstream side must be greater than the pressure on the downstream side by a certain amount, known as the pressure differential, for the check valve to open allowing flow. Once positive pressure stops, the diaphragm automatically flexes back to its original closed position.

A swing check valve or tilting disc check valve is check valve in which the disc, the movable part to block the flow, swings on a hinge or trunnion, either onto the seat to block reverse flow or off the seat to allow forward flow. The seat opening cross-section may be perpendicular to the centerline between the two ports or at an angle. Although swing check valves can come in various sizes, large check valves are often swing check valves. The flapper valve in a flush-toilet mechanism is an example of this type of valve. Tank pressure holding it closed is overcome by manual lift of the flapper. It then remains open until the tank Drains and the flapper falls due to gravity. Another variation of this mechanism is the clapper valve, used in applications such firefighting and fire life safety systems. A hinged gate only remains open in the inflowing direction. The clapper valve often also has a spring that keeps the gate shut when there is no forward pressure. Another example is the backwater valve (for sanitary drainage system) that protects against flooding caused by return flow of sewage waters. Such risk occurs most often in sanitary drainage systems connected to combined sewerage systems and in rainwater drainage systems. It may be caused by intense rainfall, thaw or flood.

A stop-check valve is a check valve with override control to stop flow regardless of flow direction or pressure. In addition to closing in response to backflow or insufficient forward pressure (normal check-valve behavior), it can also be deliberately shut by an external mechanism, thereby preventing any flow regardless of forward pressure.

A lift-check valve is a check valve in which the disc, sometimes called a lift, can be lifted up off its seat by higher pressure of inlet or upstream fluid to allow flow to the outlet or downstream side. A guide keeps motion of the disc on a vertical line, so the valve can later reseat properly. When the pressure is no longer higher, gravity or higher downstream pressure will cause the disc to lower onto its seat, shutting the valve to stop reverse flow.

An in-line check valve is a check valve similar to the lift check valve. However, this valve generally has a spring that will 'lift' when there is pressure on the upstream side of the valve. The pressure needed on the upstream side of the valve to overcome the spring tension is called the 'cracking pressure'. When the pressure going through the valve goes below the cracking pressure, the spring will close the valve to prevent back-flow in the process.

A duckbill valve is a check valve in which flow proceeds through a soft tube that protrudes into the downstream side. Back-pressure collapses this tube, cutting off flow.

A pneumatic non-return valve.

Multiple check valves can be connected in series. For example, a double check valve is often used as a backflow prevention device to keep potentially contaminated water from siphoning back into municipal water supply lines. There are also double ball check valves in which there are two ball/seat combinations sequentially in the same body to ensure positive leak-tight shutoff when blocking reverse flow; and piston check valves, wafer check valves, and ball-and-cone check valves.

Check Valves, Water Check Valves, Brass Check Valves, Sanitary Check Valves

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