Machine Tool Industry: Rapid growth in the industry

The rapid growth of the machine tool industry in the world has declined. Judging from the situation in Japan, the rapid growth of orders in April and May continued to decline, mainly due to the decline in the total volume of overseas orders; in terms of the absolute amount of overseas orders, the chain fell in May; we believe that the Japanese machine tool industry The phase of rapid growth has been steadily increasing.

The growth rate of CNC machine tools in May has declined. The machine tool industry operating data shows that the growth rate of CNC machine tools production reached 50% in May, which is lower than the level of 66% in April. The growth rate of the industry has declined. From the perspective of absolute output, the data in May may still increase in the chain. We believe that the decline in the growth rate of CNC machine tools production in May was a normal adjustment in the process of the booming industry.

The numerical control rate declined slightly. In May, the CNC rate of China's machine tool industry was 26.3%, which was lower than the 27.5% in April. We believe that the main reason for this phenomenon is the strong demand for machine tools, but the growth rate of ordinary machine tools is extremely high. Compared with the level of about 70% in developed countries, the numerical control rate still has a large room for improvement.

Downstream drivers remain strong. In May, China’s auto production reached 1.45 million units, which was lower than that in April but still maintained a high level. Recently, major automobile manufacturers have expanded their production capacity, which lays a solid demand base for the improvement of the prosperity of the machine tool industry. We believe that in the long run, the automobile will be an important fulcrum for China's domestic demand. We are optimistic about the development of the automobile industry in the factory area, and we are optimistic about the automotive industry's leading role in the machine tool industry.

The main raw materials are running low. Take steel as an example. After entering 2010, steel prices will remain at lower prices, which effectively expands the profitability of the machine tool industry. Recently, major steel companies such as Baosteel and Wuhan Iron and Steel Corporation have lowered the ex-factory price of steel products, which is good for the machine tool industry.