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How to look at China steel pipe in the international steel pipe market of 2019

In today’s global steel pipe competition, critical sources of competitive advantage of steel pipes from China are often firm specific. These include such factors as the quality of management and leadership, ability to innovate and commercialize new products, ability to pinpoint and respond to emerging opportunities, and etc. As transactions gain international character, they have a drastic impact on firm performance and industry structure. On the one hand, global linkages may shorten product life cycles, create intense price pressures, displace manufacturing, outdate technology or design, or simply cause sales and profitability declines. On the other hand, global exchange may lead to new growth opportunities, new sources of know-how and production inputs, new product ideas, or partnerships which cause synergy and new sources of competitive advantages.

Hot dipped galvanized steel pipe generally has the rational cost effective in the market. Compared with other typical steel pipe coatings, such as specialized painting and powder coating, galvanization is much more labor-intensive, resulting in a higher initial cost for contractors. Besides, due to its durability and anti-corrosive properties, most of cold rolled steel pipe can recycled and reused, which to some degree save a lot of money during the post maintenance work. Testing and studies have revealed that the average life expectancy for galvanized steel used as a typical structure material is well beyond 50 years in a rural environment and 20-25 years or more in an extreme urban or coastal setting. In that regard, contractors can confidently use this product in project. In that regard, it is believed that China galvanized steel pipe has much more popularity in the market at home and abroad in 2019.

Generally speaking, the iron and steel industry is a basis for heavy engineering, energy and construction in China. Today, more and more steel pipe manufacturers in China tend to keep up with the pace of development of the times, and go abroad actively marching into an intense competition in the international market. Globalization of market is one of the most fascinating developments of this century. For one thing, has great influence on economic transactions, processes, institutions, for other thing, has brought certain pressure and challenges to a large number of production enterprises. As part of players in the international market, almost all the domestic steel pipe suppliers are to a certain degree inevitably affected by this “internationalization” of business transactions.

In short, no industry has escaped the impact of globalization. In order to survive and thrive in a sector in constant transition, China steel pipe manufacturers need to transform themselves. Globalization is no longer a matter of choice and steel businesses’ long-term success depends on it. The businesses that ride the next wave of growth will be those that understand the trends and refine their strategies, business models and portfolios according to a truly global mindset. China steel pipe manufacturers must find the right balance between globalization and customization.

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