In the first 11 months of 2024, China's welded steel pipe production amounted to around 54.2 million tons, a year-on-year decrease of 9.4%. The reduction that exceeded market expectations was mainly due to the mismatch between supply and demand, pipe factories reduced production and inventory to cope with risks.

The trend of declining demand and shrinking supply is likely to continue, and companies need to adjust their production capacity structure and improve competitiveness to adapt to market changes.

As demand continued to shrink, the contradiction between supply and demand would intensify in 2024 and welded steel pipe production would decline again. This production reduction would have long-term effects. Risk aversion in the market has caused inventories to remain low, further restricting production capacity.

Competition in the welded steel pipe industry is intensifying, and companies need to improve their competitive advantages through cost control and multi-site layout. In the future, companies need to adjust their production capacity structure and reduce procurement and transportation costs to enhance market competitiveness.