Industry Forecast Continued from pg 21 This change in market structure is
related to national policy. In order to address the challenge of global climate change, the Chinese government has made clear its action plan, proposing that carbon dioxide emissions should peak by 2030 and achieve carbon neutrality by 2060. Automotive industry is an important area related to achieving this goal. New energy vehicles will account for about 20% of China’s total vehicle sales by 2025, according to the Energy Saving and New Energy Vehicle Technology Roadmap 2.0 released by the Society of Automotive Engineering of China on Oct 27. By 2030, the share of new energy vehicles in total sales will rise to about 40%. By 2035, new energy vehicles will become the mainstream of China’s automotive market.
The increase in the share of new
energy vehicles will change the structure of the automotive casting market, and the related impact is worth paying attention to.
General Commercial Casting China is an important producer of general commercial castings in the world, and has formed a complete production and trade system, providing a large number of high-quality castings for the world.
In 2021, both export orders and
domestic orders increased. Some casting buyers worry about the further rise of material prices, so they increased the inventory of investment casting. Thus most investment casting enterprises are full load production and this situation has changed slightly after October. Overall, the value of general commercial castings reached $2.17 billion in 2021, 21% growth from 2020.
On the whole, 2021 is a turning point
for China’s investment casting industry to gradually recover and develop after the epidemic. With the recovery of
22 ❘ January 2022 ® Figure 5: Output value distribution of investment casting in Chinese mainland in 2021.
international and domestic economy, market demand shows rapid growth. Figure 4 shows the change of investment casting output value in mainland China in recent 5 years. Total output in 2021 rose 7.7% from the peak in 2018. As can be seen from Figure 5, the largest proportion of the output value in 2021 is still general commercial castings, up to 65%. The proportion of high value- added castings has increased, reaching 24%.
There are still many uncertainties
about how the industry will evolve in 2022. Global epidemic prevention and control and economic development will also have an important impact on the investment casting market in mainland China. In addition, the rising price of raw materials affects the gross profit margin of enterprises. The shortage of skilled workers and technicians remains a major constraint on the further development of enterprises.
China Report
Figure 4: Variation of investment casting output value in mainland China
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