China Powder Metallurgy Structural Parts Industry Trends

Powder metallurgy products industry in China sincesuch as the grade of products, production
the midcentury, starting fifty years hascapacity, product price, quality, etc. are becoming
experienced twists and turns and honed, as themore aware, so they have to compete in the
process is a conservationoriented industry, nowdevelopment of the continent strategies and
has entered a rapid development period. Althoughexpansion plans.
the comparison with international counterparts isTrend 2: (in lowend market), highquality, novelty,
still in development stage, but the growth at anprice lows. The user in the product matching
alarming rate. Especially after the accession toprocess, have made new demands. A new high
WTO, so that the industry's integration into thequality: accuracy, density requirements,
international industrial chain, to the development ofappearance requirements, ancillary service
the industry brought great space. However, justrequirements. Price low: enhancing the
in terms of the internal structure of the industry,competitiveness of the industry, OEMs continue to
there are many constraints within the industrylower prices and new business challenges of old
through the development review and analysis,enterprises, small businesses to large enterprises
proposed the development of trends and thinkingchallenge. Small and medium enterprises in the field
problems to be studied, and colleagues to workthe most competitive advantage. Automotive
together on.products, for example, the average price in 2000
Opportunities At present the formation of the5 min g dropped to 3 points g around 0.5% annual
three markets, the domestic automobiledecline.
accessory market, export market, otherTrend 3: Domestic highquality raw materials will
domestic market. The world's annual output of 40gradually replace the imported materials, up the
million cars, the automobile industry developmentprices of imported raw materials and finished
opportunities to the industry. While China's car inproducts continue to follow the rise in flour prices.
2004 reached more than 2.3 million, accounting forIron rose 25%, copper up 50%, up 300%
6%, powder metallurgy parts for vehicles withmolybdenum powder, nickel powder rose 80%.
foreign than a far cry from the car on the longerSpace narrowing profit margins "10%; the same
distances. Overseas: 70%, domestic: 24%.price of raw materials at home and abroad is
Most wellknown automobile enterprises havepoor, spreads" 20%.
entered China, while the powder metallurgyTrend 4: highquality Chinamade equipment will be
structural parts localization at 50% or so. Thewidely used, in order to eliminate the pressure and
export market is the industry's second largestreduce costs, from a focus on highquality
market (including indirect export). Internationalimported equipment to attach importance to
Auto Parts procurement system aimed at theChinamade equipment, made the same
mainland market, the price is the internationalperformance and tonnage mechanical presses
market, 35% ~ 50%, with the improvement ofonethird of the price of imported Press . 1, import
the quality of this market will continue to expand,presses, and heating is very expensive; 2, in
which would bring a large number of exportrecent years, domestic press, and heating
products of China powder metallurgy parts, whileperformance continued to improve; 3, middle and
the international price system could trigger below product cost advantages of homemade
broken. In other markets will grow steadilypress; 4, the domestic production presses
Motorcycleyear stability of the domestic demandmanufacturers increased from 10 to now nearly
of around 12 million Appliances stabilized at around30.
40 million units Power Tools steady at 80 millionTrend 5; high, medium and lowend products
sets, As the car OEMs to enter the Chinese andautomatic differentiation, highend productslarge
foreign technology input, the next five years, theand technology enterprises will be made; in the
weight of cars with the powder to achieve anend productthere is a certain scale and strength
average 3.5 kilograms more than bicycles. Thisof enterprises will be made; lowend
huge market, foreign key matching the originalproductsgeneral business and small enterprises will
powder metallurgy enterprises active in China, andbe obtain, such differentiation will contribute to the
with our existing manufacturers vying for marketimprovement of the degree of specialization is
share.conducive to quality improvement is conducive to
Third, the trend One of the trends: (highenda decline in product cost, so each enterprise
market) competition in the internationalization ofshould consider their own product positioning.
the domestic market, due to rising demand forTrend 6: Industry in all its forms within the joint in
our cars, countries have the powers whollyownedaccelerating the face of a severe test of the
or jointventure plant in China to implement themarket, through various forms of joint
gradient of the transfer of the product. Such as:enterprises to maintain their own piece of
U.S.: Metaldyne, GKN, Hawker, etc.; Italy:territory. Large enterprises to consider bigger and
microtooth (miniGears), Canada: Stackpole, QMP,stronger mediumsized enterprises to consider
Japan: Sumitomo, Hitachi, Mitsubishi, etc.; Taiwan:how to cooperation, small and micro enterprises
Paul came, Green Chi, three forest machinery,to consider positioning of each firm are looking for
South Korea: Tianjin South Korea alone, Tianjintheir own direction and cooperation, so that the
Chang Xing Dongsheng South Korea. As thejoint is an inevitable trend.
foreign companies in China powder conditions,