The mechanical industry is gradually recovering, but insufficient orders have become the primary difficulty.

Aug 27,2021

On August 7, Chen Bin, Executive Vice President of the China Machinery Industry Federation, stated at the information release conference on the economic operation of the machinery industry in the first half of the year that it is expected that the economic operation of the machinery industry for the whole year will show a trend of low in the front and high in the back, gradually recovering. Indicators such as industrial added value, operating income, and total profit are expected to achieve slight positive growth.

  On August 7, Chen Bin, Executive Vice President of the China Machinery Industry Federation, stated at the information release conference on the economic operation of the machinery industry in the first half of the year that it is expected that the economic operation of the machinery industry for the whole year will show a trend of low in the front and high in the back, gradually recovering, with indicators such as industrial added value, operating income, and total profit expected to achieve slight positive growth.

  Chen Bin stated that due to the impact of the COVID-19 pandemic, production operations in the machinery industry suffered a huge shock at the beginning of the year, with major economic indicators declining in the first two months. However, starting from March, there has been stabilization, and after entering the second quarter, a clearer trend of recovery has emerged.

  "From June's data, all five major categories of national economic industries involved in machinery have achieved positive growth," Chen Bin added.

  Looking ahead to the second half of the year, as macroeconomic policy effects are gradually released, demand in the machinery industry market will continue to recover and operational environments will improve. However, from three driving factors—investment, consumption, and foreign trade—the economic operation situation of the machinery industry remains severe. Additionally, there is still significant instability and uncertainty regarding overseas pandemics; thus international economic and trade conditions are becoming increasingly severe and complex. The machinery industry still faces considerable downward pressure.

  "The China Machinery Industry Federation predicts that if overseas pandemics can be effectively controlled in the second half of this year, it is expected that China's automotive market production and sales will decline by about 10% year-on-year; it is expected that operations in the electrical appliance industry will remain relatively stable with slight revenue growth; it is anticipated that key economic indicators for petrochemical general equipment will be lower than last year; it is expected that heavy mining industries will maintain a certain degree of growth throughout the year; it is anticipated that declines in machine tool industries may narrow in the second half; it is expected that agricultural machinery industrial growth rates will exceed those of previous two years; and it is anticipated that engineering machinery industries will maintain a certain degree of growth throughout this year.

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In June 2020, China's foreign exchange for bearing imports was $368 million, an increase of 10.13% month-on-month and a year-on-year increase of 34.64% compared to June last year, with an increase of 26.47 percentage points from the previous month's growth rate of 8.17%. The number of bearing imports reached 191 million sets, a month-on-month increase of 3.74%, a year-on-year increase of 26.61% compared to June last year, and an increase of 22.61 percentage points from the previous month's growth rate of 4%. As of June 2020, China had accumulated foreign exchange for imports totaling $1.907 billion, which is a year-on-year increase of 12.37%. This is an increase of 4.27 percentage points from last month's rate of 8.1%. The number of imported bearings was 1.151 billion sets, an increase of 15.31% compared to the same period last year, and an increase of 2.02 percentage points from last month's growth rate of 13.29%. From the perspective of imported bearing categories, the foreign exchange for tapered roller bearings increased by 45.98% year-on-year, becoming the main driver for bearing import foreign exchange; followed by bearing parts with a year-on-year growth rate of 25.3%, other ball bearings with a growth rate of 23.24%, cylindrical roller bearings with a growth rate of 15.39%, and spherical roller bearings with a growth rate of 13.73%. It is not difficult to see that under the new situation, significant changes are occurring in the structure of the bearing market. From the perspective of importing countries, foreign exchange from Japan reached $490 million, ranking first with a year-on-year growth rate of 4.61%. Germany ranked second with $420 million in foreign exchange for imports but had a remarkable growth rate of 28.31%. Surprisingly, Taiwan's import foreign exchange for bearings reached $137 million, ranking third with an astonishing year-on-year growth rate of 346%. This indicates that as China's economic structure adjusts, significant changes are also occurring in the market for importing countries for bearings.

Aug 27,2021


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