Deputy General Manager of Yuantai Derun Liu Kaisong Invited to Participate in 2023 North China Regional Ferrous Industry Summit- Pipe & Sheet Forum

On the morning of May 16, 2023, "2023 North China Regional Ferrous Metal Industry Summit Forum - Pipe& Sheet Sub-Forum" was held in Tangshan New Hualian Pullman Hotel! Liu Kaisong, Deputy General Manager of Tianjin Yuantai Derun Group, was invited to attend.

The meeting started with a keynote speech by Hou Liyan, a steel analyst from Shanghai Steel Union, and Dai Zhengdong, a steel pipe analyst, on "The current situation of hot-rolled steel strip operation in 2023 and market outlook for the later part of the year" and "The clouds will see the light of day and the moon will be clear. Steel pipe demand release is insufficient; looking ahead to the strip market in the second half of 2023, Hou Liyan said that short-term supply and demand contradictions are still more difficult to significantly ease, on behalf of Zhengdong said that the supply and demand fundamentals of welded pipe or continue to maintain a weak balance, the annual capacity utilization level will continue to move down, the overall apparent consumption will decline moderately. However, with the domestic counter-cyclical adjustment policies continue to increase, steel prices in the continued substantial adjustment, the bottom is expected to appear in the near future, the beginning of the third quarter, the main logic will gradually return to industry fundamentals, the second half of 2023, the domestic steel pipe market or the overall narrow oscillation, the overall rise in a limited pattern.

Next, Liu Kaisong, Deputy General Manager of Tianjin Yuantai Derun Steel Pipe Manufacturing Group Co., Ltd. brought the theme of "Production Focus on Manufacturing, Channel Focus on Integration, Terminal Focus on Service", firstly, Liu introduced the development history of Tianjin Yuantai Derun Group and the advantages and core of the company. The Group was founded in 2002 and now has two production bases in Tianjin and Tangshan. For more than 20 years, it has been focusing on the research and development, production, sales and service of structural steel pipes, mainly square and rectangular steel pipes. Liu said that for a long time in the past, China's economic level developed rapidly, and the competitive pressure of the industry is not particularly large, the overall market is a seller's market where demand is greater than supply, but the last two years have gradually developed into a period of demand-determined market, which also forces enterprises to transform and upgrade to adapt to the changing market, and competition between enterprises will also be the main theme of the market in the future. In the face of this pattern, the most important thing for enterprises is to reduce costs and increase efficiency. In production, channels and terminals to achieve industrial synergy, to help enterprises high-quality and healthy development. Finally, Mr. Liu advocated that all enterprises should follow the direction of the national emerging industries and take the road of high quality development with firm technological innovation!

After the sharing of the theme, Mr. Liu, from the perspective of his own company, discussed "How to operate the current inventory at the later stage? What are the means to avoid risks?" "Is the current economic situation downstream consumption trend and capital improvement?" The company also put forward its own views on topics such as "how to operate the current inventory? The current level of inventory in the factory is relatively high, in order to ensure that the specifications are relatively complete, not willing to take the initiative to reduce production as a last resort. For risk-averse operations, one is to improve the level of orders, the second is to do a little hedging with the help of financial instruments, in addition, we currently keep the ratio of orders to inventory at 1:1 to do risk hedging. For the downstream demand side Liu said the second half of the year is relatively pessimistic, because the current new growth points such as PV support, sun room, etc. Although it is in the growth phase, but the amount of growth is limited, but the supply side of the increment is more obvious. And the current downstream funds are also relatively tight state. For the second half of the turnaround, in terms of square tube may lie in the country's relatively large infrastructure investment, the northwest and offshore photovoltaic may have a relatively large growth. The overall second half of the year is not too bullish, I hope to continue to reduce costs and increase efficiency, smoothly through.

In the warm applause, the "2023 North China Regional Ferrous Metal Industry Summit Forum - Pipe and Sheet Sub-Forum" ended successfully. Tianjin Yuantai Derun Steel Pipe Manufacturing Group Co., Ltd. is a large square pipe manufacturer in North China, with strong financial strength, large sales scale, business in more than ten provinces and cities, welcome customers to visit our factory to guide, with our reputation and service to provide you with high quality and low price products.