Metallurgical Machinery industry growth at historic low

It is reported that an international engineering machinery and equipment manufacturing industry, a broad space for development. Metallurgical Machinery industry growth at historic lows. Heavy-duty mining machinery through the rapid development of the national economy is significant. In recent years, in addition to the financial crisis in 2009, China’s total industrial output value of heavy mining machinery annual growth rate has remained at more than 30% of heavy mining machinery industry total output value of the ratio of machinery industry has also been steadily increasing in the 21st century, equipped with globalization of the manufacturing sector is increasingly clear, China has a vast market, cheap labor, engineering and technical personnel and infrastructure, rich and good benefits, the international equipment manufacturing to China, a large-scale industrial transfer, in the long run, China’s heavy-duty machinery industry a broad space for development remained.

    Metallurgical Machinery industry growth at historic lows. The industry’s production cycle is longer, to-order production, the impact of the economic cycle on the industry lags behind. Since 2008, the global economy has experienced a serious downturn in the steel industry overcapacity problems starting to emerge, and gradually transfer to the metallurgical machinery industry, in 2009 the first 11 months, metal smelting equipment, production of 568.6 thousand tons, down 10.96% ; metal rolling equipment, production of 606.4 thousand tons, down 12.68 percent, compared with 20-30% in previous years continued to rise, there has declined markedly. Metallurgical equipment exports also declined.

    In addition, the iron and steel production capacity also exists structural problems, construction steel, required for railway construction in particular, rail output reached a record high, companies have the phenomenon of the excessive production, the future demand for various metallurgical equipment depends on the product life and imports accounted for , life is not long for consumables, and the import-substitution space with room for a relatively large demand for products, such as gear boxes.

    Mining equipment demand will gradually restored. Coal, machinery, downstream of the coal mining, coal is a cyclical industry, more sensitive to economic cycles, 2008 to early 2009, the global economic downturn, thus resulting in reduced demand for coal, coal production capacity expansion, the speed of fall, 2009 Since the second half, picking up coal production, coal prices have also been rising, the coal demand to rise again, is expected to drive demand for coal machine. As the coal machine’s production cycle is longer, lagging behind the economic cycle, coal production growth is expected to rebound in the second half of 2010.

    The coal industry consolidation brought about the demand for coal. August 28, 2009, the State Work Safety Administration and other 14 ministries and commissions jointly issued the «Work on deepening the mine closure guidance rectification» and demanded to «Eleventh Five-year» end of the number of small coal mines controlled at less than 10000. At present, China the number of small coal mines account for more than 90% of the total, with its output accounting for about one-third of the total output of coal, often using guns and backward modes of production such as mining, the coal machine’s needs are small, with an integrated coal mine forward, will surely have a large number of complete sets of equipment for mechanized mining needs.

    Industry «neutral» rating, concerned about the coal industry consolidation brought about by demand for coal. Metallurgical machinery industry will continue to be subject to short-term excess capacity downstream of the pressure, the coal machinery industry will benefit from the restructuring of the coal industry can focus on strong technical strength, complete sets of equipment, a strong production capacity of coal machinery manufacturing enterprises.

    Iron and steel overcapacity led to shrinking demand for metallurgical machinery industry. China’s steel industry is currently about 660 million tons production capacity, actual production of 500 million tons, more serious overcapacity in 2009, with the country’s economic stimulus policy, the steel industry has improved the situation, but the short-term situation of excess steel production capacity is not will be thoroughly changed. China’s steel consumption in the long term has not yet reached saturation point, but demand growth will slow.