Development Innovation of Welded Steel Pipes

"The development compendium during twelfth-five period" puts forward clearly, oil and gas pipelines' total length will exceed 150000 km until 2015, representing a 90% growth in 2010. According to this, it is calculated that in the next four years we will need about 700-800 million tons of welded steel pipe to transmit oil and gas each year, which means in the next four years the length of the increased pipelines is equivalent to the sum of the past fifty years, increasing at more than 14% growth rate, providing the great opportunity for the oil and gas pipeline company. The import of China's oil is likely to exceed 3 tons until 2020, surpassing Japan, which makes China become the largest oil importing country of the world. It is essential to produce a lot of oil pipelines. At present most of the domestic gas and oil pipelines are welded steel pipes. Therefore, the using amount will increase greatly. The industry of welded steel pipes is booming.

In recent years, the steel enterprise of China in the international market is very competitive, mainly thanks to the two advantages of Chinese enterprises in the international competition. On one hand, the energy price is low in our country. The raising energy price worldwide makes the cost of the structural steel pipe enterprises worldwide increasing constantly, but in our country, energy price is still lower than the international market, which is a cost advantage of Chinese black steel pipe industry. On the other hand, the environmental cost is low in our country. The environmental cost of developed countries in Europe is increasing, which weaken their competitiveness. The two advantages decide that the welded steel pipe enterprises in China have certain competitiveness in the cost of production.

However this situation will not last long in our country. First of all, the cost of energy such as oil price and gas price will increase. The electricity price is low. It is estimated that the price will also improve. Electricity is abundantly used in the industry of welded steel pipes. Therefore, the increasing energy price will impact to the entire industry. Second, the Chinese government puts forward energy-saving task. Each enterprise must implement the policy, which will improve environmental cost. If so, this will put up the price of the welded steel pipe. The difference between domestic price and foreign price will be further narrowed, that will weaken the international competitiveness of the welded steel pipe enterprise in our country.

In summary the welded steel pipe enterprise should get ready. It should actively seek technological innovation, especially the core technology innovation. Innovation is the strategic direction of welded steel pipes. The development of low carbon economy widens the welded steel pipe industry market space. The enterprise should transform the development mode and adjust the industrial structure, in order to adapt to the low carbon economy. The development direction of welded API steel pipe industry is seeking technical innovation, promoting the stable and sustainable development of Chinese welded steel pipes.