The rapid development of the world valve industry, opportunity or challenge to the chinese valve industry?
2008-08-01

              Recently a report about the EU market for iron and steel valve casting was issued. This CBI market survey for iron and steel valve castings shows that EU demand for valves is expected to grow by 3-4% per year in the period 2007-2009. Both the water and sewerage industries and the oil, gas and refining industries, the largest market segments, will offer opportunties. The period until 2012 will be characterized by large investments in water and wastewater treatment in sever EU countries, due to EU legislation. Demand from the oil, gas and refining industries will even increase faster, the result of an acceleration in invesments related to the building of new storage facilities, because sources in and around the EU are becoming exhausted and the EU will need to buy natural gas and oil from distant countries and store these chose to home.               In fact, not only in Europe but also in the world valve industry is in the rapid development. World Industrial Valves Market will reach US$72 Billion by 2010, according to the new report by Global Industry Analysts, Inc.               There are many reasons behind the rapid development of the world valve industry. New investment, upgradation of existing facilities and technological developments are driving the market for industrial valves. Environmental legislations also play a key role in determining the market's performance and future. Market expansion will be propelled by growth in developing markets including Asia-Pacific and Latin America.                North America remains the largest market with respect to consumption while Asia leads in terms of growth rates. With ongoing industrialization and infrastructure development, Asia has been exhibiting extremely high growth rates for industrial valve revenues. By 2012, the industrial valve market in Asia has been forecast to reach $21.6B compared to $16.3M in 2007. This represents a growth rate of over 32% over the next five years. By contrast, 15% growth over the same time period has been forecast for the Americas where revenues are expected to grow from $14.2B in 2007 to $16.3 in 2012.                 In such an international context, the market potential of Chinese valve industry is very big. In 2007, China's valve and faucet industry continued maintaining a rapid and stable growth, and main economic indices were much higher than those in 2006. The total industrial output value reached CNY92.7 billion, up 27.9% year on year, and the total number of employees were 240,000, an increase of 13,000 persons against the previous year, while the export delivery value reached CNY24.6 billion, up 15.3% year on year.                 Huge market demand has lured multinational companies into joining competition in the Chinese market, especially in high-end valve market, which has intensified the competition among domestic valve producers in medium- and low-end valve market. The current size of China valve market is around CNY50 billion, of which 20% market share are occupied by overseas valve producers. Now China can produce valves with more than 3,000 models and 40,000 specifications, which can meet domestic market demand basically. Though China has made big progress in its ability to produce complete sets of valve, but China has still to rely on import of some special valves. In a word it is a great opportunity but also challenge to the Chinese valve industry.