When Exporting Galvanized Pipes To Peru, What You Need To Know Is Not Just Low Price Competition!
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When Exporting Galvanized Pipes To Peru, What You Need To Know Is Not Just Low Price Competition!

Views: 0     Author: TSD     Publish Time: 2026-01-14      Origin: Site

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The demand for galvanized pipes from China in Peru is growing at a rate of over 15% per year. But behind this seemingly prosperous market, over 60% of Chinese suppliers have fallen into a vicious cycle of "low price competition, low profit, and high risk".


From Tianjin Port to Callao Port, batches of galvanized pipes crossed the Pacific Ocean and eventually found their homes on construction sites in Peru. However, companies that can truly establish a foothold in the Peruvian market have come to understand a truth: success does not depend on whose prices are lower, but on who understands Peru better.


Peruvian market: not just price sensitive

The galvanized pipe market in Peru presents a clear hierarchical structure:


Government infrastructure projects account for 30% of total demand, with extremely high quality requirements, standardized procurement processes, guaranteed payments, but also the highest entry barriers.


Private construction companies account for 50%, and they value both price and supply stability as well as technical service capabilities.


Retail and miscellaneous projects account for 20%, although the order quantity is small, they are most sensitive to price and are the starting point for many new entrants.


Certification difficulty: NTP standard is not an ISO translation

Many Chinese companies mistakenly believe that Peru's NTP standard is only the Spanish version of ISO, which has resulted in a large number of goods being detained at ports.


Difference in zinc layer thickness requirements: Peru requires a zinc layer of 275g/㎡ for outdoor galvanized pipes, which is about 15% higher than the international standard. In addition, the inspector will randomly select 6-8 points from each batch of goods for measurement, and any point that does not meet the standards may result in the entire batch being returned.


Seismic performance certification: Peru is located in the Pacific Rim seismic zone and has special requirements for the seismic performance of building materials. Successful companies will obtain seismic certification from the Peruvian Engineering Association in advance, which becomes the "stepping stone" for bidding on government projects.


Environmental standards upgrade: Starting from 2023, Peru will implement stricter restrictions on heavy metal content. A batch of galvanized pipes worth $800000 were returned due to excessive cadmium content, causing heavy losses to the shipper.


Logistics optimization: details determine profits

The transportation cost of galvanized pipes accounts for as much as 20% -25% of the final selling price, and optimizing the logistics process directly affects profit margins.


Packaging standardization: Use reinforced wooden pallets and waterproof packaging, with each pallet weighing between 1.8-2.2 tons and a size not exceeding 1.2 meters x 1.2 meters x 6 meters. This not only meets the loading and unloading conditions of Peruvian ports, but also maximizes the utilization of container space.


Route selection: The direct flight route from Shanghai/Ningbo to Callao Port takes about 35 days and is the most economical option. For urgent orders, it is possible to consider transiting through Chile. Although the shipping cost increases by 15%, it can save 7-10 days of time.


Customs clearance preparation: Send the complete packing list, invoice, certificate of origin, and inspection certificate to the Peruvian customs clearance agent 15 days before the arrival of the goods, which can reduce port detention time and avoid daily demurrage fees of hundreds of dollars.


Channel construction: Three steps to enter the Peruvian market

Step 1: Collaborate with professional importers. There are dozens of companies specialized in importing building materials in Peru, who are familiar with local regulations and channels and can help new products quickly enter the market.


Step 2: Establish a local warehouse. Renting a warehouse of 500-1000 square meters in Lima or Arequipa, maintaining a constant inventory of 200-300 tons, can achieve delivery within 72 hours, greatly enhancing competitiveness.


Step 3: Develop a secondary distribution network. Establish exclusive partnerships with professional distributors in 2-3 major cities to reach a wider range of end customers.


Risk management: Avoiding the three major pitfalls

Payment risk: Adhere to a 30% advance payment, and pay the remaining amount with a copy of the bill of lading. For old customers with good credit, a 60 day payment term can be provided, but export credit insurance must be purchased.


Exchange rate risk: The exchange rate of Peruvian Sol against the US dollar fluctuates greatly. It is recommended to include exchange rate adjustment clauses in the contract or use forward settlement to lock in the exchange rate.


Intellectual property risk: Registering trademarks and patents in Peru to prevent local businesses from counterfeiting products. There have been cases where Chinese companies' product designs were copied and registered by local companies, resulting in genuine products being unable to be sold.


The Way to Upgrade: From Product Export to Value Output

Successful Chinese companies are transitioning from selling products to providing solutions


Localization of technical support: Establish a technical service center in Lima, hire Peruvian engineers, and provide on-site measurement, design consulting, and installation guidance services.


Product customization: In response to the climate characteristics of frequent earthquakes and high salt spray in Peru, we have developed reinforced galvanized pipes with a zinc layer thickness increased to 300g/㎡. Although the cost has increased by 8%, the selling price can be increased by 15%.


Service integration: Providing a complete solution from design, supply to installation for large-scale projects, this "one-stop service" model has a profit margin 10-15 percentage points higher than simply selling products.



The door to the Peruvian market is open to Chinese companies, but the threshold is gradually increasing. Enterprises that still rely on low price competition will have increasingly limited survival space. And enterprises that have completed transformation and upgrading, providing high-quality products and comprehensive services, are enjoying the dividends brought by this market growth.


The future of galvanized pipe exports belongs to those enterprises that truly understand and respect the uniqueness of each market.


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