In current three years, the annual demand for energy transformers is about 1.three billion kva in China, along with the production capacity of as higher as three billion kva brought a "digest problem" for the market place. The domestic energy transformers suppliers are facing a serious overcapacity circumstance. The savage imbalance among provide and demand begins the panicky industry competitors, particularly in 2011. But only some years just before, the electric energy building created so rapidly in China, and it resulted inside the speedy raise production of electric transformers. combined transformer A relatively massive quantity of transformers suppliers expaned their production capacity quickly. Considering that 2009, the speed in the electric energy building is forced to slow down, plus the domestic demand of transformers decreased. Bidding & Purchasing became the main purchasing method inside the marketplace, and low bid led towards the unprecedented fierce competitors of enterprises. After that, the economic benefits of domestic transformer enterprises has greatly declined, many businesses inside the losing edge. A substantial variety of energy distribution enterprises even choose to participate within the dog-eat-dog circumstance regardless from the product quality. Thus, transformer product quality decline , the accident rate to rise. According for the reports from AQSIQ, there are several undesirable phenomenas that the current transformers suppliers have in common: treating the copper with the aluminum, electrical switchgear and secondary utilization of silicon steel sheet. Take the silicon steel sheet as an example, after running for more than ten years, the inner magnetic property and insulating layer on the surface have been changed fundamentally. If we recycle it to re-weld it for second-use, it will must boost its reluctance, and cause quality problems of too much noise, no-load current and great loss etc. All of those are at risk on the safty of energy transformers. So what should the transformers enterprises do to change the current circumstance, and what is the future on the domestic transformers industry? Considering the global environment, metal-enclosed switchgear the government will surely improve the rate of renewable energy sources so HVDC light energy transmission will must be the trend within the neat future. What change will be brought for the traditional transformers industry become a worthy topic. Inside the new developing scenario, transformers enterprises should adjust their product structure to follow the industry trend, and only by this way, we can gain an competitive position inside the marketing environment of excess production capacity.