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Industry News
The First Quarter Analysis on The Import & Export of China's Construction Machinery in 2010

According to Customs statistics, in the first quarter of 2010 China’s import and export trade sum of construction machinery is US$ 3.76 billion, up 27.5% over the previous year. Of this total, the value of imports is US$ 1.77 billion, increasing 62.3%; export value of 1.99 billion, up 6.8%, and trade surplus is US$ 220 million, down US$ 550 million.

From Jan to Mar of 2010, import volume of whole cip machine is 1.12 billion, increasing 72.3% than last year, accounting for 63.3% of total imports; parts import is 650 million, up 46.6%, and 36.7% of total imports. Of this total, crawler excavators pvc fitting imported 8,872 units, up 165% over the previous year, and accounting for nearly 60% of whole machine imports, which is an increase of 22 percentage points higher than previous year. Besides, some slitting machine products show good increase in bag making machine imports, such as high-powered bulldozers, graders, asphalt pavers, all terrain cranes, tower cranes, forklifts, pneumatic tools and spare parts.

As for machinery export, the volume of whole machine is 1.27 billion, up 4.1% over the previous year, accounting for 64% of total plastic valve exports; parts export is 720 million, up 11.5%, with a share of 36%. Exports continued to grow slightly in March, in which warmer faster products include loaders, road rollers, excavators, tower cranes, forklifts, tractors, engineering drills, concrete mixers, rock drills, pneumatic tools and spare parts.

In the first quarter, construction machinery imports and exports show three features. First, machines imports growth is far more than exports. Total trade surplus becomes narrow, there is even a month deficit in March, which is the first time since January 2006 totally 51 months; Second, imports of whole construction machinery increase substantially, holding a share of more than 60% of total imports, especially for track excavator (mainly second hand), the import appears blowout again, which is an impact on the domestic blow molding machine brands, causing strong reactions in the industry field; Third, the worldwide market is lack of effective blow molding machine demand, the rebound in exports get along slow and poor regularity, which indicates the market still exist unstabilizing factors.

Above provided by, and find more information on China Machinery News/ China Machinery Manufacturers / China Machinery Products.
The Effect on China's Import and Export of Machinery Industry by RMB Appreciation

RMB has been appreciating in an increasing rate since China's reform of exchange rate in 2005, and up to now it has appreciated by 21%.

Overall from the long-term trend of RMB exchange rate we can see that the appreciation can help China to get more benefits in the international exchange that is good to the economic development. However, the RMB appreciation should be a long, slow and gradual process. Although the appreciation is of advantage to import, it has larger negative impact to export. Under the current circumstances, the rate should has both increase and decrease with flexible adjustment according to China's economic development. Therefore we should carefully deal with it from our own cip economic status, not to appreciate because of huge pressure from foreign countries.

First, evaluate the impact that RMB appreciation brings to import pvc fitting and export of machinery industry.

The construction machinery industry slitting machine import of 2009 is 180.917 billion U.S. dollars. The payout should be 1.234939 trillion yuan according to one U.S. dollar = 6.826 yuan terms, but under the appreciation of 0.2 yuan it should be 1.198756 trillion yuan according to one U.S. dollar = 6.626 yuan terms which can pay 36.183 billion yuan less than the former.

The construction machinery industry export of 2009 is 195.824 billion U.S. dollars. The revenue should be 1.336695 trillion yuan according to one U.S. dollar = 6.826 yuan terms, but under the appreciation of 0.2 yuan it should be 1.29753 trillion yuan according to one U.S. dollar = 6.626 yuan terms which reduce income of 391.65 100 million yuan.

When machinery import payout and export earnings come to offset, our income would reduce RMB 2.984 billion. Therefore the income sum just reduces 3 billion yuan compared with the whole industry revenue expenditure, the impact is limited. However, if RMB appreciates by 0.4 yuan, 6 billion yuan income will reduce. By analogy the more RMB appreciates, the greater impact we will have.

Second, the export enterprises are facing difficulties.

As the import and export enterprises are under different departments, the principal of importing machines products is each economic department, and the machinery manufacturing industry mainly imports metal processing machine tools, key parts and raw materials needed by some special equipments and production (such as the orientation of silicon steel, copper, aluminum, etc.). while the machinery exports are mainly enterprises of machinery manufacturing industry, and other industries exports account only for a small share.

For an enterprise, the funding sources of import and export are different. The investment of importing bag making machine equipments roots in enterprise profits, fixed assets depreciation funds or bank loans, and the listed plastic valve companies can raise funds from the stock market. However, the export is the running income of enterprise that directly effect its production costs, operational efficiency and welfare of the staff.

Therefore, the RMB exchange rate appreciation will lead to the difficulties of the exports cost increasing and the income reducing to exporters in blow molding machine manufacturing industry.

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Complete Sets of China Metal Tube Online Automatic Detection Equipment Replacing Imported Products

From Laser Institute of Shandong Academy of Sciences, reporters learned that their independent developed complete sets of metal tube online automatic detection bag making machine succeeded in the application. This equipment has not only broken foreign non-destructive testing equipment monopoly plastic valve in China, but also directly increased more than 5 billion yuan economic benefit each year for enterprises that use this equipment.

China, the largest producer of metal blow molding machine in the world has more than 2,000 large and small-scale metal tube enterprises, only the cip output is about 100 million tons. In the absence of sophisticated detection pvc fitting technology, products are difficult to enter the international market. Meanwhile, the testing equipments that slitting machine import from abroad are expensive, and also can't adapt to China's metal tube.

In order to solve the pipe fitting problem of metal tube online automatic detection, Laser Institute of Shandong Academy of Sciences launched the technological breakthrough. Through making use of through-type, point vortex, flooding, water film ultrasonic and other detection technology, they achieved the online detection on the surface and internal defects of metal tube in real time. This complete set equipment of automatic detection can hose analyze the reason why the metal tube doesn’t work, and remind producers to adjust the production equipment in time, it also can pick up the damaged metal tube away from the production line, which has greatly increased the rate of quality products. The equipment can test the metal tubes with 5mm to 1200mm diameter, covering all specifications of domestic metal tube at present, so it is the metal tube online automatic detection equipment with most widely range of detection diameter and highest detection accuracy currently in China, and it has reached the international advanced level.

The institute said that this equipment can replace imported products, and the price of the equipment with same index is only one half of the imported equipment. According to incomplete statistics, the equipment has been promoted to more than 10 provinces such as Shandong, Jiangsu, Hebei and so on, nearly 200 sets equipment are used by more than 120 enterprises such as Baosteel, Baotou Steel, Panzhihua Iron and others, it has newly increased more than 5 billion yuan for these enterprises economic benefit, and also saved about 100 million yuan raw materials and energy.

According to industry experts, the successful application of metal tube online automatic detection technology has increased the quality of domestic metal tube and enlarged the applications in high-end fields such as nuclear power tube, high-pressure boiler tube, which will make significant economic and social benefits.

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The Existing Problems in China Domestic Mold Material Market

Mold materials has a wide range, from the general carbon structural steel, alloy structural steel, carbon tool steel, alloy tool steel, high-speed tool steel, stainless steel, maraging steel to carbide, insoluble alloy, high-temperature alloys, non-ferrous metals can be chosen, which are mainly alloy tool steel mold steel. With the development of China's mold industry, higher requirement need for quantity, quality, variety and performance of mold material, and the mold materials market also has a rapid development. For example: Mega Mould and Demark Blow Mold Mega Mould and Demark Blow Mold

The domestic trial production of die materials lagged behind the demand of mold industry, mainly due to the follows facts:

1- Sales channel is not open and smooth.

2- Black round bar material is plenty, while the flat, fined, pre-hardened materials and products standard parts are lack. 80% of the die steel market in China is black round material, so the bag making machine customers have to reforge or refine the material, which caused low utilization of material and the long production cycle, even cannot meet the plastic valve needs of the slitting machine manufacturing mold.

3- Common-quality mold steel material is plenty, while high-quality ones are lack. And there are considerable part of the HQ mold steel needs go through the vacuum refining and electro-slag remelting. Some foreign cip companies require all the mold steel need electro-slag remelting as long as it’s cross-section is over 150mm in order to ensure high purity, high-density, pvc fitting high tropism, but in our country the die steel through the ESR only hold a small share.

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The China Strategy of Foreign Machine Tool Enterprises Suffering failure, But China's CNC Entering Into High-end
August 26, 2010

The top machine tool enterprises of developed countries, such as Japan and Germany, hold the world's most advanced packing machine tool manufacturing technology, but their orders decrease sharply. Why can not the best products be sold out? The China strategy of foreign slitting machine tool enterprises has been failed.

Some people think that it mainly because the foreign companies pay their attention to technical light market and European and American markets, but ignore the Chinese market, in addition their engineering machiney force cost is too high. In China's equipment manufacturers there is such a statement, the right is the best, that is to say although the import products are good, but the prices are too high, while the domestic products performance and quality are not as good as the former, but their prices are cheap and most suitable for Chinese users. To plastic valve extent it helps Chinese blow molding machine manufacturers to avoid the disadvantage of their own brands and technology and other aspects, and to seize most of the middle and low-end market. Foreign enterprises strategies are incompatible with China that is the reason lead to the strategy failure.

When the foreign enterprises strategy is failure, China's construction machiney tools go against the trend, and it plays a strong role and moves to the high-end gradually.

At present, the independent innovation of China high-end CNC machines tools is remarkable and the industrialization process is increasing. In the research and development of heavy and super heavy-duty CNC machine tools, the manufacturer of the heavy-duty five-axis gantry complex cip tools, the super heavy-duty CNC horizontal boring lathe and other high-end CNC machine tool which achieve the international advanced level is successful, and it has satisfied the machining requirements for large parts in aerospace, power generation equipment, automobiles and other important fields; the high-speed precision CNC lathes, machine centers and other products have widely used in many industry fields such as automotive, aerospace, electronics, war industry, and they have promoted many small pvc fitting and medium enterprises to renovate and reconstruct their equipment and upgrade the industry.

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