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Steel pipe industry is on the way to revival

Chinese steel pipe industry has gotten a heavy toll by the 1997 economic crisis. The crisis made only a few large factories are still in operation. In 2001, a number of industries need steel pipes such as manufacturing industry, automobile industry. And electronic industry began to revive from the economic decline with the help of steel tube. But the steel pipe industry remained in the recession. The capacity utilization of steel pipe industry is decline -only 20% until 2005. There are many factors keep the steel pipe industry from reviving such as low demand and old machines.
Many mill owners managed to deal with difficult conditions by cutting steel pipes into pipe fittings. Lately many mills produce pipes sold to construction projects for buildings. Pipes are more efficient as they can be easily installed and they are stronger than wooden ones. Demanding of steel pipes grew a lot in the past several years. These later processing let mill owners gain more profit, and push them to invest more fund in this industry.