Shandong Molong main customers to reduce production capacity of more than the overall national demand

Reporter Chang October 12, Shandong Molong Petroleum Machinery Co., Ltd. in the SME IPO issue. With the company listed, Shandong Molong Market Prospects let the market feel worried.　　Some market participants pointed out that the company's industry has been in oversupply, almost complete competition, the industry outlook is worrying. Production capacity exceeds the total demand in Shandong Molong is a manufacturer of oil drilling and mining equipment, mainly engaged in casing, tubing, pipeline, sucker rod and other products, including tubing and casing accounted for seven or eight of the sales share.　　The prospectus shows that 07, 08, 09 and the first half of 2010, the oil casing sales revenue of 1.39 billion yuan, 2.23 billion yuan, 1.72 billion yuan, 1 billion yuan, accounting for the current sales revenue of 82%, 81%, 86%, 76%.　　"Oil casing industry is a seamless pipe industry in the sub-industry special oil Pipe (OCTG) industry, the industry is now in oversupply of the status quo," a person in the industry told reporters. According to the prospectus of Changbao shares, a pipeline manufacturer recently listed by another, the Chinese metallurgical Industry Planning and Research Institute released data showing that in 2008 the apparent consumption of China's oil-specific pipe was 3 million tonnes, which was affected by the global financial turmoil, It is expected to be 2.476 million tonnes in 2009 and 2.656 million tonnes in 2010. And in Shandong Molong Prospectus, 2008 domestic main oil casing manufacturers and the company's oil casing total capacity between 2.8 million tons to 3.9 million tons.　　Two data comparison shows that the oil casing capacity has exceeded the current domestic aggregate demand. While supply is greater than demand, many companies are expanding capacity. Relevant data show that the special equipment base of the Bohai New zone, the special-purpose oil pipe production line is expected to be put into production this year, the extension of oil Equipment Manufacturing Co., Ltd. 120,000 tons/year oil dedicated pipe project has been put into production, seamless oil special pipe Manufacturing Co.　　Future supply and demand contradictions will be more prominent. "The main characteristics of the oil-specific pipe industry is high energy consumption, high capital, heavy industry export tax rebate may have continued downward pressure." This August, vice minister of Commerce Jiang Yaoping pointed out that the second half of China's foreign trade policy to stabilize the main, but it is still possible to some high energy consumption, high pollution products export tax rebate adjustment. If the country cuts the export drawback rate, the whole industry will be greatly affected.　　An industry researcher analyses that. Decrease in purchasing volume of major customers Shandong Molong's prospectus shows that PetroChina and Sinopec are the most important customers in the country, however, the company is currently facing serious customer churn risk, 2007, 2008,　　In the first half of the 2009 and 2010, the proportion of sales revenue accounted for 43.12%, 40.46%, 36.47% and 18.67% respectively. In addition, Shandong Molong Prospectus in a detail also worth pondering. 2009 in PetroChina first procurement recruitIn the standard, the total bid of the company's oil casing accounted for 11.5% of the total bidding. Some investors pointed out: "The feeling of Shandong Molong Prospectus played a word game, PetroChina's ' first ' procurement bidding, the company accounted for 11.5%, and the real representative of the significance of PetroChina's annual tender, Shandong Molong in which accounted for the number of shares, the prospectus does not explain. However, the data published on the Internet in the energy network has exposed the plight of Shandong Molong: PetroChina 2010 Domestic API Standard Oil special tube tender results show that in the finished pipe 800,600 tons of procurement, Shandong Molong only won the bid 27800 tons, accounting for 3.48%,　　In the light tube 338,700 tons of procurement, Shandong Molong won the winning number of 0. Low bargaining power the Molong prospectus of Shandong Province shows that 07, 08, 09 and the first half of 2010, the domestic sales amount accounted for the total sales in the year of 52.47%, 52.27%, 64.1%, 69.71%.　　In domestic customers, PetroChina and Sinopec two of the purchase amount of large proportion. "Petrochemical dual-male use of centralized tendering mode, bidders in a bid to each other, such a model to a certain extent squeezed the company's profit space." "In addition, the purchase price of PetroChina is of great guiding significance to the domestic oil market," an industry analyst said in an interview. Sinopec has made it clear that the 2010 purchase price for oil-specific pipes is carried out in the light of the tender price of PetroChina, and that CNOOC and Yanchang oil fields will also determine the purchase price according to the bid price of PetroChina. In other words, in the fierce domestic market competition, Shandong Molong in the domestic product sales and not very good bargaining power. ”