Flux-cored welding wire product segment:
Production volume: Approximately 880,000 tons, with a compound annual growth rate of 9.3% from 2020 to 2025, accounting for nearly 30% of total welding wire production.
Market size: Approximately 18 billion RMB, accounting for nearly one-third of the global market; the global market is approximately 50 billion RMB, with China being the largest consumer and producer.
Main demand drivers: Ships, bridges, pressure vessels, construction machinery, wind power/photovoltaic and other new energy equipment.
Production line equipment segment:
The market for core equipment (forming units, wire drawing machines, layer winding machines, etc.) is growing at an annual rate of approximately 8%-10%. Import substitution of high-end production lines is accelerating, and the market share of domestic equipment continues to increase.
New capacity additions and upgrades of existing lines are proceeding simultaneously. Leading enterprises' capacity expansion is driving demand for high-end equipment, while small and medium-sized enterprises prefer cost-effective solutions.
II. Core Driving Factors
Expansion of downstream demand: The increasing proportion of steel structure buildings, the recovery of the shipbuilding industry, and the growth of new energy equipment (wind turbine towers, energy storage tanks) are driving the demand for high-efficiency flux-cored welding wires.
Automation and substitution effect: The popularization of robotic welding and the gradual replacement of solid welding wires with flux-cored welding wires in thick plate and high-toughness applications are increasing the penetration rate from 22% in 2020 to 28% in 2025, and is expected to reach over 35% by 2030.
Policy and Standards Drive: The "dual carbon" goals and stricter regulations on welding fume emissions are driving demand for environmentally friendly flux-cored welding wires with low fume emissions and no copper plating, as well as green production lines.
Import Substitution Accelerates: The market share of domestically produced high-strength steel and stainless steel flux-cored welding wires in fields such as nuclear power and aerospace increased from less than 40% in 2020 to 63.7% in 2025, driving the localization of high-end production lines.
