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Overcapacity in China's ppr tube industry not only reduces the economic benefits of the industry

Source: Date:2013-8-30
In addition to favorable factors, industrial policies such as environmental protection have also become the key to affecting the development of the industry. Although the price of ppr tubes has improved recently, due to severe overcapacity and pollution problems, the ppr tube industry is still in a relatively depressed period, and the problem of overcapacity needs to be resolved.
Related data show that in 2012, China's new ppr pipe brand clinker production capacity was about 1.588 billion tons, and the industry's actual excess capacity ratio was about 16%. By region, the overcapacity levels in Northeast, Central South, and East China are all within 10%; the overcapacity problems in North China, Southwest, and Northwest China are relatively serious, with overcapacity ratios exceeding 30%.

It can be seen that the current overcapacity of the ppr pipe industry in China not only reduces the economic benefits of the industry, but also increases the vicious competition in the market, but also hinders the adjustment of the industrial structure and the transformation and upgrading of enterprises.

As a traditional manufacturing industry, the total demand of the ppr tube industry is approaching the saturation point step by step, which means that competition among companies in the industry will intensify, and it is difficult to release corporate benefits. Therefore, curbing repetitive construction, curbing overcapacity, and speeding up corporate restructuring have become the key to the sustainable development of the ppr tube industry.

Since the beginning of this year, the China PPR Management Association has continued to make efforts to resolve the problem of excess capacity, and has proposed the Implementation Plan for Accelerating the Merger and Reorganization of Enterprises in the PPR Management Industry (draft), and also proposed the Suggestions on Adjusting Tax Policies for the Comprehensive Use of PPR Management Resources. And "Policy Suggestions for Resolving PPR Pipe Overcapacity by Carbon Trading Method" and other measures, the measures are "multi-pronged", which is intended to accelerate the adjustment of industrial structure and resolve the pressure of excess capacity.

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