The welding consumables industry is an industry sensitive to the cyclical fluctuations of the national economy. The production, quality and development of steel directly determine the sustainable development of the welding consumables industry and the direction of welding technology. In general, the total consumption of welding consumables accounts for seven-thousandths of the steel consumption. The decline in the steel industry in 2009 will significantly affect the demand of the welding consumables industry.
Domestic welding consumables market demand has declined, and overcapacity has led to increasingly fierce competition in the industry. The overall characteristics are as follows:
1. The competition is diversified, and the competition between medium and high-end products is more intense;
2. The competition mode shifts from single product competition to enterprise comprehensive supporting capability competition;
3. The product update speed is further accelerated.
Flux cored wire project is the main profit growth point
Flux cored wire is a high-end welding consumable product with a wide range of downstream requirements. After 5 years of technical research and development, the company has already possessed the design and manufacturing capabilities of flux cored wire production equipment, and its production line performance and manufacturing process have reached the international advanced level. At the end of 2008, the company's 10,000-ton flux-cored wire project at the slab warehouse base was completed and put into production. It is also preparing to issue 265 million yuan of convertible bonds for a new 40,000 tons of flux-cored wire technical transformation project. After the project is completed and put into production, it will become the main profit growth point of the company.
