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2020 China's Casting Industry Problems And Development Prospect Forecast Analysis

2020 China's Casting Industry Problems And Development Prospect Forecast Analysis

Nov 14, 2020

Since my country first surpassed the United States to become the world's largest producer of castings in 2000, it has consistently ranked first in the world. In 2015, affected by changes in the country’s macroeconomic environment, my country’s total casting output experienced a negative growth for the first time, down 1.30% year-on-year


In 2016 and 2017, my country's foundry has resumed its growth trend under the stimulus of increasing downstream demand for automobiles, rail transit, mining and metallurgical heavy machinery, and construction machinery. In 2019, my country's casting output reached 48.75 million tons.


The development dilemma of the casting industry


(1) Limited financing channels restrict the potential for subsequent development


The foundry industry is a capital-intensive industry, and most of the capital of foundry companies mainly comes from the rolling investment of retained earnings of the company and indirect bank financing. The financing channel is single and cannot support the continuous expansion of the scale of the company, making the company better The implementation of investment projects in China is difficult, and the company’s subsequent development potential is restricted.


(2) Lack of scale advantages and industrial chain synergy


Most of the domestic small and medium-sized foundry enterprises have small production scales, backward equipment, low technological level, and do not have scale effects, and their ability to resist risks is weak in the fierce competition environment of the foundry industry. The ability to produce synergy with downstream application industries in casting material control, precision machining and other production and R&D aspects is not conducive to the improvement of the overall competitiveness of the industry.


The development prospects of the casting industry


(1) National industrial policies provide a strong guarantee for industry development


The foundry industry is the basic industry of the manufacturing industry. It is the basic guarantee for the innovative development of many products and high-end technology and equipment. It is in an indispensable position in the development of the national economy. The government and industry authorities have given strong policy support over the years.


(2) The steady growth of downstream demand provides broad space for industry development


Casting products are widely used in various manufacturing industries such as automobiles, internal combustion engines, mining and metallurgy, engineering machinery, power generation, rail transit, and ships. They are the core components of the above manufacturing industries, and the weight of castings accounts for a relatively high proportion of the weight of the whole machine. The development of my country's new urbanization and industrialization and strategic emerging industries will drive the sustainable development of related manufacturing industries and promote the increase in demand for related casting products, thereby providing a broad market space for the development of the foundry industry.


(3) Technological progress and the integration of industrialization and industrialization to promote industry development and structural optimization


Under the guidance of the national manufacturing power strategy, the overall technological research and development capabilities of my country’s foundry industry will continue to improve, and the technical testing and process control capabilities of foundry companies, as well as the implementation of technical standards, will be further enhanced, and the international competitiveness of my country’s foundry products will be improved. In order to realize the independent production and export of key castings required for high-end equipment, provide guarantees and drive the sustainable development of my country's foundry industry.


Ningbo QS Machinery Inc

Address: Shiyangsi,Hengxi,Yinzhou,Ningbo,Zhejiang,315131 China

Tel: +86-574-88065065 

Fax: +86-574-88065066 

Mobile Phone: +86-15957878688 

E-mail: sales@qs-casting.com