Since 2002, China's special shaped steel pipe industry has experienced rapid growth for more than ten years. At present, the special-shaped steel pipe industry has entered a period of steady development from the period of rapid growth. But we believe that the process of China's heavy chemical industry has not yet ended. Special-shaped steel pipe industry still has potential and some room for development.

In 2007, China's per capita consumption of special-shaped steel pipe (excluding repeat material factor) is only 320 kg, far below the level of per capita consumption of steel tubes in the industrialized countries to complete the industrialization. Based on our China industrialization and urbanization survey, in 2010 China's actual steel consumption amounted to 5.5 tons, in 2018 China's actual steel consumption of up to 7.5 tons, compared with about 6.6 tons of actual steel consumption, there is still a steady space for expansion.

At present, there are still some kinds of special shaped steel pipe production capacity that are weak and need to rely on imports, such as cold-rolled silicon steel, high-grade cold-rolled sheet, high-grade galvanized plate, etc.. With strong R & D strength advantages of special-shaped steel pipe enterprises, through the mastery of these high-end steel varieties of production capacity, will gradually open the gap with ordinary steel pipe.

We believe that in the background of global inflation, steel industry overall business risk although somewhat larger, but still get beyond the general level of monopoly industry profitability in the form of some varieties of special-shaped steel tube market through the advantages of steel enterprises.