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In 2019, China's tool consumption declined due to the increased trade conflict between China and the United States and the continued downward trend in downstream occupations such as cars. After 2012, the share of China's total annual consumption of cutting tools and total annual consumption of machine tools showed an upward trend, reaching 25% in 2019, indicating that China's east-west consumption is improving quality and upgrading, but it is still far lower than that of developed countries.

In 2019, China's tool consumption declined due to the increased trade conflict between China and the United States and the continued downward trend in downstream occupations such as cars. After 2012, the share of China's total annual consumption of cutting tools and total annual consumption of machine tools showed an upward trend, reaching 25% in 2019, indicating that China's east-west consumption is improving quality and upgrading, but it is still far lower than that of developed countries.

Total consumption of domestic tool stores continues to rise

The consumption status and structural change of the tool market are the barometer of the development of China's manufacturing industry. After the shaking of China's cutting tool master plan from 2012 to 2016, with the landing of the 13th Five-Year Plan, the manufacturing industry is moving rapidly towards automation and intelligence, and the transformation and promotion of the manufacturing industry promotes the rapid development of the cutting tool profession. From 2016 to 2018, China's annual consumption plan for cutting tools has increased significantly and rapidly. In 2018, the total annual consumption of cutting tools reached 42.1 billion yuan, surpassing the high point 40 billion 2011 and creating a record high. In 2019, China's tool consumption declined due to the increased trade conflict between China and the United States and the continued downward trend in downstream occupations such as cars.

China's machine tool consumption for many years ranked first in the world, but the low level of tool consumption. In Germany, the United States, Japan and other developed countries, modern CNC machine tools and CNC tools in harmony with each other, the law of balance is very significant. According to statistics, the consumption of cutting tools in developed countries is about 50% of the consumption of machine tools. With the progress of domestic enterprise management know and technical strength, more and more enterprises began to put into the automatic processing system, the consumption of CNC tools gradually increased. After 2012, the share of China's total annual consumption of cutting tools and total annual consumption of machine tools showed an upward trend, reaching 25% in 2019, indicating that China's east-west consumption is improving quality and upgrading, but it is still far lower than that of developed countries. It can be seen that there is still much room for improvement in the level of tool consumption in China.

Cemented carbide cutting tool production ratio gradually progress

The change of tool data supply structure in China is related to the development level of China's manufacturing industry. In recent years, the output structure of cutting tools in China has continued to change, and the proportion of cemented carbide tools with superior induction function is constantly improving. According to the statistics of the East and West Branch of China's Machine Tool Industry Association, the output of carbide tools produced by China's leading tool enterprises has increased from 39% in 2015 to 47% in 2019. Carbide tools are the leading tools involved in digital production, and the increase in the proportion of production is related to the micro-setting of CNC promotion of machine tools in China. In the future, with the continuous promotion of China's manufacturing industry, the proportion of hard alloy cutting tools will gradually improve.

Declining import dependence

At present, the national economy has entered the new normal of medium and high-speed increase, and the rising cost of production factors such as labor, raw materials and power has made it more and more difficult for the production industry to operate. "Decreased production costs and improved production efficiency" has become the consensus of many domestic production enterprises. In recent years, the rapid rise of domestic tool enterprises, with cost-effective and local service advantages, instead of some imported products, to speed up the localization of CNC tools.

In 2019, the total consumption of cutting tools in China reached 39.3 billion yuan, the annual consumption of domestic cutting tools was about 25.7 billion yuan, and the imported cutting tools were about 13.6 billion yuan. Although the domestic tool in the total to 2/3 of the market share of China's cutting tool consumption market dominant position, but the overall low-end products. In 13.6 billion yuan of imported tools, most of them are high-efficiency tools urgently needed by modern manufacturing industry. The ZTE incident has sounded the alarm bell for China's production, and the lack of core technology in key links will bound the vigorous development of China's high-end manufacturing industry. As a high-end equipped with CNC tools for manufacturing industry, speeding up its localization is of great significance to the security of the national economy. According to the statistics of China's Machine Tool Industry Association, the proportion of imported tools in total consumption decreased from 37.17 to 34.61 in 2016-2019, which to a certain extent indicates that the self-sufficiency of China's CNC tools is gradually increasing, and the import dependence is declining year by year.

In the future, China's tool profession will show the following trends:

-- The adjustment of tool consumption structure is accelerated, and the demand for CNC tool consumption is increasing. China is the most abundant tungsten resources in the world, but the use level of tungsten resources is not high. There are many enterprises engaged in the production of cemented carbide products and cutting tools nationwide, but most of them are small in planning, mainly for low-end shopping malls. With China's industrial policy to promote the extension of cemented carbide to the direction of deep processing, cemented carbide products and tool structure is being further optimized, the proportion of deep processing products represented by CNC blades will be further improved.

-- Substitution of imports and localization is the primary development direction of China's tool profession. During the "Thirteenth Five-Year Plan" period, my country put forward the "China Production 2025" and "Internet" action plans to promote my country's manufacturing industry to be automated and intelligent, and to improve the level of digital production. Numerical control tool is an integral element of digital production, is the key means of improving labor productivity and quality, and has the effect of "four or two dialing a thousand pounds" in saving production costs. The dependence of high-end CNC tools on imports is related to national economic security and national defense security, and it is an obstacle to restricting our country to become a powerful country in production.

At present, most of the cutting tool enterprises in China produce low-end products mainly based on traditional standard cutting tools, and the supply of CNC cutting tool products that are used to the trend of digital production is insufficient. In recent years, the adjustment of the product structure of China's tool enterprises has achieved a certain development, replacing some imported products in a single category, but it is difficult to replace imports with domestic tools in the short term.

-Tool professional market concentration will gradually progress. In developed countries, tools grow together with digital production. With the manufacturing industry's knowledge, use and requirements for cutting tools, the tool data has experienced the promotion from carbon east and west steel, high-speed steel to hard alloy and superhard data. The tool technology, research and development, marketing and service system are more complicated than before. The imitation of cutting tools is becoming more and more difficult, the requirements for independent innovation are getting higher and higher, and the survival and development environment of small tool enterprises is getting smaller and smaller. In the future, with the evolution of tool technology, small enterprises do not have the ability to continue to invest in research and development in the fields of tool materials and coatings. They are at a disadvantage in the competition in shopping malls and will inevitably be screened by professional head enterprises.