China's machine tool market information summary

Abstract According to data from the China Machinery Industry Federation, the Chinese machine tool industry showed a gradual recovery in 2012 compared to the previous year. The total industrial output value reached 705.797 billion yuan, representing a 12.73% increase year-on-year. Sales output value stood at 588.923 billion yuan, rising by 12.25%. The production-to-sales ratio was 83.44%, and the total export value amounted to 516.745 billion yuan, up 9.79% from the prior year. However, the growth rate dropped by 8.42 percentage points compared to the same period in 2011. Moving into 2013, the trend of declining import volumes for metalworking machine tools continued, accompanied by a steady rise in average import prices. In the first seven months of 2013, the import volume decreased, but the unit price increased by 6.4%. By July, although the monthly import volume saw a slight increase, the average import price declined. According to the General Administration of Customs of China, in July 2013, China imported 7,132 units of metalworking machines, a sharp drop of 33.7% year-on-year. The import value reached 869 million U.S. dollars, down 31.6% year-on-year, with an average unit price of $121,900. From January to April 2013, the total production of gold-cutting machine tools was 243,000 units, a decrease of 2% compared to the same period in 2012. The cumulative production of CNC gold-cutting machine tools reached 60,000 units, down 7.9% year-on-year. In April alone, 22,000 metal forming machine tools were produced, marking a 7.0% increase. From January to April, the cumulative production of forming machine tools was 69,000 units, down 2.6% year-on-year. While the industry had previously expected a bottoming out in the second quarter, the April data suggested some positive signs. Considering the lag in the macroeconomic cycle and the recovery of downstream industries, it is anticipated that the machine tool sector would gradually warm up in the second half of the year. In terms of imports, 0.65 million machine tools were imported in April 2013, down 22.7% year-on-year. The import value was $970 million, a decrease of 3.1%. From January to April, the cumulative import of metalworking machine tools totaled 25,600 units, down 19.3% year-on-year. The import value was $3.67 billion, a decrease of 12.1%. Regarding exports, the export of metalworking machine tools reached 1.23 million units in April, up 105% year-on-year. However, the export value was $210 million, down 0.9% year-on-year, indicating a significant drop in per-unit export value. From January to April, the cumulative export value was $890 million, showing a 5.5% increase year-on-year. In May 2013, the export value of the machine tool industry was $3.74 billion, with a year-on-year growth rate of 1.19%. From January to May, the cumulative export delivery value reached $16.98 billion, growing by 2.57% year-on-year. In May, the output of metal cutting tools was 67,852,100 pieces, with a year-on-year growth rate of 10.31%. The cumulative output from January to May reached 3,075,564,200 pieces, increasing by 24.42% year-on-year. From January to June 2013, the total import and export volume of the machine tool industry was $11.787 billion, down 11.44% year-on-year, accounting for 3.74% of the machinery industry. The negative growth rate of import and export widened, with exports outpacing imports. Provinces like Jiangsu, Guangdong, and Shanghai have historically been the main regions for importing CNC machine tools and are also home to many export-oriented enterprises. These three areas together accounted for over half of the CNC machine tool imports. However, with increased investment in central and western China, these regions have seen more volatile import trends. In recent years, the central and western regions of China have experienced rapid economic growth, characterized by large-scale, concentrated import sources and lower per-unit prices. These imports are mainly used by processing enterprises serving the IT industry. This suggests that China’s export processing industry is shifting toward the central and western regions. In the first half of 2013, the pace of overseas investment in the Chinese machine tool industry slowed down. Three main factors contributed to this decline: first, changes in national policy led to reduced preferential treatment for foreign-invested enterprises; second, market sentiment on the mainland weakened, reducing the appeal of foreign investment; third, domestic manufacturing costs rose significantly, compressing labor cost advantages. This trend aligns with the movement of labor-intensive industries to neighboring countries. Among the eleven key products, metalworking machines had the largest deficit, while tools had the largest surplus. From January to June, the trade deficit in the machine tool industry reached $3.499 billion.

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