Intro to Hot Dip and Cold Galvanized Steel Pipe

Galvanized pipe can be classified into two kinds: cold galvanized steel pipe and hot dip galvanized steel pipe. The former has been forbidden, and the latter has been advocated temporarily in China.

Hot dip galvanized steel pipe is to make the molten metal react with iron substrate so as to produce alloy layer so that the substrate can be combine with coating combination. Hot dip galvanized steel pipe is first taken acid pickling in order to remove iron oxide on the surface of the steel tube. After acid pickling, clean up in the tank of ammonium chloride or zinc chloride or ammonium chloride and zinc chloride mixed aqueous solution, and then sent to the hot dip plating tank. Hot dip galvanized has the advantage of uniform coating, strong adhesion, long service life, etc.

Steel substrate react complex physically and chemically with molten electrolyte solution, and then form into zinc-iron alloy layer with the compact structure of corrosion resistance. Pure zinc alloy layer, alloy layer and steel substrate are integrated with each other. So, its corrosion resistant ability is extremely strong.

2. Cold Galvanized Steel Pipe

Cold galvanizing is electricity galvanizing, but the galvanized quantity is very few about only 10 g to 50 g per square meter. Its corrosion resistance ability is weaker than that of galvanized pipe. Regular galvanized steel pipe manufacturers mostly do not use electric galvanized zinc (cold galvanized) in order to guarantee the quality. Only those small enterprises with small scale and old equipment adopt electric galvanized zinc. Of course, the price is relatively cheaper. At present, the Ministry of Construction has officially indicated to weed out cold galvanized pipe which is now lagging in technology and it is not allowed to use cold galvanized pipe as water and gas pipe in the future.

The zinc layer is electrodeposited coating, and zinc layer and steel substrate layered independently. Because the thin zinc layer attached on the steel substrate is simply easy to fall off, the poor corrosion resistance is not strong. In the newly-built residence, it is prohibited to use the cold galvanized steel tube as the feed pipe.

Heat the iron and steel industry will continue in 2017?

In 2017, China's steel industry will still in a critical period of transformation and upgrading, the situation is still grim. As the welding steel pipe, seamless steel pipe, galvanized pipe, straight seam submerged arc welding pipe, carbon steel pipe manufacturer, scaffolding, and other products production services vendors, Shinestar group thinks, although in 2016 iron and steel enterprise profitability, a successful counter attack, but it is not optimistic.
Industry fundamentals, the situation of oversupply of steel market is not a fundamental change, iron and steel enterprise's profit foundation is still not strong enough. On the one hand, the high volatility in the prices of raw materials, such as coke, ore, iron and steel enterprise profit control to bring greater pressure. Since this year social inventory exploded on the other hand, the first week of Spring Festival domestic steel inventories rose to 50%, high inventory needs certain time, may be longer than expected time before industry. And monetary policy fine-tuning since this year, before the Spring Festival, the central bank raised lending facilities (MLF) interest rates after the mid, and after the central bank raised its multiple deadline reverse repurchase and stock lending facilities (SLF) interest rates, interest rates from the long side interest rates to short end, up market interest rate curve, liquidity tightening signs for a more cautious attitude to the futures market operation, greatly influenced by phase current linkage. There are some unclear steel spot market direction.
The ministry released earlier this month the first announcement to cancel the specification of 35 list of iron and steel enterprise, this is the 2012 years since its steel industry standard management, start list by "addition" change "subtraction" for the first time. Means that dissolve the iron and steel industry in 2017 will further strengthening its excess capacity.
Recently, the five ministries jointly issued by the "about further implement pressure balance policy promotes the steel market has kept running notice. "Notice" pointed out that before the recovery period of steel prices, show that the serious problem of excess steel production capacity in our country have a certain degree of improvement. Recently appeared steel prices of spot and futures markets and rapid rise in the short term, but China's steel industry oversupply problem has not been fundamentally solved. Also notice again, to crack down on illegal production and sales "groud of steel" behavior, before the end of June 2017 in accordance with the law to ban the production of construction steel power frequency furnace, intermediate frequency furnace capacity, manifests the country determined to clean up behind the capacity determination.
Clean up 2017 "groud of steel" as an important content to work capacity. Provinces such as guangdong, jiangsu, hebei, sichuan also have issued relevant documents, determined to crack down on illegal production "groud of steel" production and sales. Iron and steel industry in China has developed from incremental into the stage of development, reducing the overall production capacity surplus part of the advanced capacity are resolve, "groud of steel" must clean up all.
As a based in China, service global steel production enterprises, Shinestar group will work hard to realize the transformation and upgrading, combined with their own situation to make strategic plan, produce the high quality of welded steel pipe, seamless steel pipe, galvanized pipe, straight seam submerged arc welding pipe, carbon steel pipe, scaffolding, and other products, promote the competitiveness of the enterprise.


China to curb fast growing steel prices

The Chinese government is encouraging steel companies to sign long-term contracts with coal and downstream steel consuming companies while improving their product quality.
The measure, set out in a document issued by five ministry-level bodies, is aimed at stabilizing recently fast growing steel prices and further cutting the industry’s overcapacity.
The document, jointly released by National Development and Reform Commission and other four ministries, said that although progress had already been made to cut overcapacity in the steel industry in recent months, the elimination of outdated capacity remains a major challenge.
Despite the rapid rise of spot and future prices for steel in the short term and the recent recovery in output and sales performance of steel companies, companies should carry out further efforts to reduce capacity to support economic growth, as the country’s oversupplied steel sector has experienced years of plunging prices and factory shutdowns due to a sluggish economy, it said.
Analysts said despite the surge in steel price since the beginning of this year, the API line pipe manufacturer supply-demand situation has not changed and the government document aims to stabilize the market and prevent steel price from overheating and disproportionately rising.
According to Wang Guoqing, director of the Lange Steel Information Center, despite the surging steel prices, steel inventories remain high.
Figures from the center released that the total inventory of steel in 29 major cities in China exceeded 12.39 million metric tons as of Feb 10, a 35 percent increase compared with three weeks ago, surpassing the peak of 2016.
The construction steel saw the biggest growth, more than 8.31 million tons as of Feb 10, 50.8 percent higher than three weeks ago, it said.
The government needs to ensure that cutting overcapacity proceeds as planned, he said.
According to Huatai Futures, considering the current stable increase in steel output and off-season demand, the inventory for steel in 2017 is believed to exceed 18 million tons, the highest of the past three years.
China’s crude steel output rose slightly last year, with crude steel production increased 1.2 percent year on year to 808.37 million tons in 2016, compared with a 2.3 percent decrease in 2015, according to the National Development and Reform Commission
China plans to reduce steel output by an additional 100 million tons to 150 million tons by 2020. Its 2016 target to cut 45 million tons was achieved ahead of schedule.
China will enact stricter rules for trimming steel overcapacity in 2017 after making significant progress in 2016, according to experts.


Trump Added Pressure for China's Iron and Steel Trade

Chinese people just finished celebrating the Spring Festival, the President of the United States Trump insisted on "difficult" to China, the U.S. department of commerce ruling China enterprise anti-dumping tax rate of 63.86% 76.64% and 63.86% - 190.71% anti-subsidy tax rate. From the point of view, China's steel exports, the proportion of exports to the United States plummeted, a very important part of reason is that from the trade friction factors.

As a production services supplier which supply carbon steel pipe, welded steel pipe, line pipe, galvanized steel pipe, scaffolding, and other products , Shinestar group is very concerned about China-U.S trade, we believe that China's steel exports to the us fell so much, the most important factor is the United States on China's export restrictions may play a role. The U.S. steel industry used to dominating the world, reached its zenith, but now they need a lot of imports. Trump advise to bring manufacturing back to the United States, to  revitalization of manufacturing industry, also revitalization of the steel. According to the data showed last year, China's steel exports to the United States in 1.13 million tons, a year earlier to 2.42 million tons. Trump on Chinese steel "hate" is self-evident, and because of that, industry experts predict the short-term steel trade friction is not going to stop.

In the United States "double reverse" survey of iron and steel enterprises in China, the United States ignored the evidence of  material submitted by  enterprises in China, in the case of no or doubt, in the final stage suddenly forced to improve the rate of countervailing duties. China express  disapointment to the U.S for China iron and steel products cut out high taxes , questioned the unfair investigation method, will take the necessary measures to safeguard enterprise rights fairly.

Considering the signs of economic recovery in the world is unclear, as the Trump to power and inverse globalization trend, in 2017 the foreign trade situation is still not optimistic, steel trade friction is likely to be more, the number of steel products is still the trade friction of the hardest-hit areas this year. For Chinese companies, this is such a high "double reverse" tariffs means that Chinese enterprises will face higher prices and lower market recognition, severely weakened the competitiveness of the Chinese iron and steel products in the United States market, squeeze the Chinese iron and steel products exports to the us space.

 Although exports is falling , no need too scared. Now should timely adjust the relevant policies and strategies, put more focus on the domestic market. Of course, for own problems, we cannot turn a blind eye. China's steel exports are mainly low value-added, low technology content products, lack of competitiveness, the price is low. Of course will be considered by other countries as dumping, result intrade friction. Therefore, China should improve the value of steel products, increase the added value, enhance competitiveness, not just to preempt the market by low price products.

Shinestar group will analysis of international trade situation scientificly, seize the opportunity, meet the challenge, strive to produce more high quality carbon steel pipe, welded steel pipe, line pipe, galvanized pipe, scaffolding, and other products, for the Chinese brand in the international arena made positive noises.


New style Shinestar football team to celebrate the grand opening

The evening of February 15th, in 2017 started at the beginning of the Shinestar group sponsored Shinestar steel football team for a friendly football match together to open up a fresh outlook, farewell encouraging 2016, celebrate the anticipated 2017.
As the referee's whistle, full engagement both team, launched a fierce competition!Pitch Shinestar of football athletes are a spirit, supple, gave a great game."Come on! Strike!" Shinestar of employees friends off the field for the players' pep talk, cheerleading cries, deafening, every cry bring infinite power players.
As the Shinestar football team in 2017 to open the first battle, although the evening weather is chilly, but still enthusiastic players and cheerleaders, both on and off the pitch, the atmosphere is very warm. Shinestar football team full of youthful spirit, personnel neat, but also from Cameroon and Mali international players to join them. It is understood that they are students of Central South University, the performance is very eye-catching in the game, the team also added an international color because of their accession.
Eventually after a positive struggle, Shinestar steel soccer team won the match victory, won the 2017 campaign. Football match, spelling is hard, than is to unite, through the friendly game, our heart want to toward one place, interest makes toward one place, twist into a rope, air refreshing, enhance the collective cohesion, present a Shinestar talent is offering new glimpses of the New Year.
In the upcoming March, Shinestar steel football team will also participate in the Changsha region of the larger eight 3040 core dynamic league. I believe Shinestar steel football team will continue in this event show their good style.
It is reported that Shinestar Group has been adhering to the "people-oriented" Scientific Outlook on Development, attaches great importance to staff sports activities through effective team work, various cultural activities, in promoting the relationship between employees and the company, enhance cohesion, play a positive role in promoting exchanges between enterprises.

Macroeconomic Boost Steel Market

At present, the gradual disclosure of macroeconomic data, showing positive steel market, the market forces to promote upward.As the welded pipe, piling pipe,SAWH steel pipe, seamless stainelss tube and Carbon steel pipe manufacturer services, shinestar Group believes that, despite the rise of trade protectionism, but the global manufacturing industry made a good start, Asian, European and American enterprises are showing growth situation, the domestic and foreign demand for steel that is a good news.
Although the U.S. economy continues to recover, but downward pressure is still not small, especially the continued appreciation of the dollar, to a certain extent will damage the competitiveness of the U.S. exports, but also hindered the manufacturing industry to return to the United States, and ultimately harm the economic growth in the United States, the Chicago fed president called slow to raise interest rates, to prevent the U.S. economy downside risks.Shinestar Group believes that the Fed rate hike slower than expected, will suppress the dollar, thereby stimulating the appreciation of the RMB exchange rate against the dollar.This year, the dollar index fell back, since Trump was elected by more than half (or all or 4.2%, taking up more than 2.5%). This factor coupled with the people's Bank in 2017 the impact of interest rate, the RMB exchange rate against the dollar could "break seven" will become a very big uncertainty. In this case, the export competitiveness of China steel there will be a corresponding increase in steel exports weakened, then two aspects including the direct export and indirect export.
According to customs statistics, in 2017 the national steel exports 7 million 420 thousand tons in January, down by 23.2%, the lowest level in the last 30 months.The start of the new year there are three reasons that China's steel exports fell sharply: one is the trade friction intensified, many countries around the world are on China steel to raise tariffs;Second, the domestic steel demand is relatively strong, selling price is higher than the international market, and prospects uncertain, export orders will fall;Three factors is the Spring Festival.Even so, as long as the global economic recovery is not change, is expected to the year China's steel exports will still be around one hundred million tons of large quantity scale, export growth will of course have fallen significantly.On the other hand, in the case of a significant decline in steel export growth, or even decline, China's apparent consumption of steel will increase significantly.
In 2017 the national real estate market also start to "light".Market monitoring data show that during the Spring Festival this year, the number of new houses in the country's major cities generally shrink, year-on-year growth generally fell to single digits, the lowest level in the past three years.There is no doubt that the national real estate sales fell sharply, this is a bad steel market, but we also want to see, real estate sales contract, the relevant departments that the market is "overheating", active suppression foam results.If the relevant departments of the pre judgment and the introduction of measures have not been a major miscarriage of justice, it means that the future of the real estate market will return to normal levels, of course, is conducive to the healthy development of China's steel market demand.
As a foothold in China, service global steel production enterprises,shinestar group will continue to focus on the development of China steel market, and strive to produce welded pipe, piling pipe,SAWH steel pipe, seamless stainelss tube and other products, to enhance the competitiveness of enterprises.


The Self-regulation Ability of China's Economic Can't be Discounted

In the past we always worry about the policy can not remove the production capacity, and overcapacity long-term suppression the growth of economic. Shinestar Group believes that from the view of operation, it is optimistic, because many industries have been over through the power of the market to get a clear market, which allows us to have confidence in the future economy.

As a supplier of spiral pipe, spiral steel pipe, 3pe anticorrosive spiral pipe, large diameter spiral pipe, double-sided submerged arc spiral welded pipe, galvanized steel pipe and other products, Shinestar Group think that achieved good result in the past year, which makes the whole enterprise, the entire industry are full of fighting spirit and momentum.

However, there are some deviations: from the view of production capacity, overcapacity is a global problem, also for production capacity, but in 2016, China face the situation that the global nature of production and administrative to the production capacity of two factors together, resulting in a relatively large degree of administrative intervention in the industry has increase in prices, such as coal and steel prices.

From the view of leverage, we have experienced several rounds of leverage after 2012, most of the asset bubble to the last tragic market, the whole society ended with big pay. For example, in 2013, we saw the against non-standard business to force commercial banks to adjust the balance sheet, which leads to the money shortage. 2014 stock market start of the main board, in 2015 to clean up the capital to the lever to become the June issue of the fuse line. Bond market has not yet completed, we have already seen the end of 2016 bond market has been the outbreak of a drastic adjustment, we named it as the volatility, the volatility may happen again in 2017, the financial leverage still not finish, the bond market Of volatility will be unavoidable.

From the view of cost reduction, the cost of business income per hundred dollars from a single year to see a certain degree of decline in revenue,it is per hundred dollars reduced two cents in cost. Our corporate burden is not only tax and fees, but also includes some system costs, and academic institutions to calculate the macro tax burden is not high, but the actual burden of the enterprise is very heavy. In the situation of economic downturn and corporate earnings deterioration, if the cost of taxes and fees have not been effectively mitigated, it will a heavy pressure on the enterprise. From the micro-research point of view, there are some companies the burden increasing, some companies have to leave the market, but this situation is still continue, so the cost of this situation and the original policy design is deviated from the original intention.

The production capacity at 2016 is global, the performance of Chinese enterprises is particularly prominent, the Chinese economy's self-regulation ability can not be discounted. The future, Shinestar Group will take the development opportunities, and constantly upgrade themselves to produce more high-quality spiral pipe, spiral steel pipe, 3pe anticorrosive spiral pipe, large diameter spiral pipe, double-sided submerged arc spiral welded pipe, open flat and other products to develop China's economy.