China's hardware tools force high-end market

At present, China's cutting tool companies have already occupied half of the market through continuous learning and strategic planning. However, the company still highlights several fatal problems in the development process. If insufficient attention is paid to improper handling, it will seriously affect companies. The development and advancement.

At this stage, cemented carbide tools have dominated the tool type in developed countries, with a proportion of up to 70%. However, high-speed steel cutters are being reduced by 1% to 2% per year, and the proportion has now fallen below 30%.

At the same time, carbide cutting tools have become the main tool required by processing companies in China, and are widely used in the automotive and parts production, mold manufacturing, aerospace and other heavy industries, but China's cutting tool companies are blindly and massively The production of high-speed steel knives and some low-grade standard knives does not take into account the market saturation and the needs of enterprises. Ultimately, the high-end, high-tech cutting-edge tool market has been given away to foreign companies.

According to statistics, the current annual sales of cutting tools in China are approximately 14.5 billion yuan, of which the proportion of cemented carbide tools is less than 25%, but the carbide cutting tools required by the domestic manufacturing industry already account for more than 50% of the cutting tools. Blind production has already failed to meet the growing demand for carbide cutting tools in the domestic manufacturing industry, thus forming a vacuum in the mid-to-high end market and eventually being occupied by foreign companies.

In 2007, of the 16,500 tons of hard alloys produced in China, 4,500 tons were used for the production of cutting tools, and the number was comparable to that of Japan. However, the value of finished tools is only US$800 million, which is far less than Japan’s US$2.5 billion. This fully shows that the overall production level of domestic high-performance cemented carbide cutting tools is still quite different from that of foreign countries. Therefore, under the premise that domestic companies cannot meet the market demand, the demand for manufacturing will have to be solved by relying on a large number of imports. According to statistics, the annual sales growth of major foreign companies in China's high-end tooling market has reached 30%, which has exceeded the average annual growth rate of domestic tools.