China Report
continuous progress in the production of high value-added products. 2. Automobile Casting At present, almost all international parts
companies have procurement in China, and most of them are concentrated in automotive engine peripheral products. Domestic large-scale and highly automated investment casting companies basically have automobile parts products. The sector is expected to grow 4.2% in 2023 to reach $391 million. In the past few years, the automobile casting
Figure 2: Total output value of investment casting in Chinese mainland.
enterprises have carried out large-scale upgrading, which will drive the overall level of China's investment casting industry. 3. General Commercial Casting The majority of China's investment casting
enterprises belong to this field, which is facing a new development situation after more than 30 years of rapid development. Due to the large number of enterprises, it is currently in a state of excess capacity. The sector saw a decline in 2023, down 11.8% to $2.1 billion. Export-oriented companies in the sector have benefited from the depreciation of the RMB yuan. In addition, the price of stainless steel materials in 2023 had a large decline, which has brought some favorable factors for the development of enterprises. In the field of general commercial casting,
Figure 3: Variation of investment casting output value in Chinese mainland.
Investment Casting Industry Under the above background, China's investment casting industry is meeting opportunities and challenges, and the development situation in three fields is different.
1. High Value-added Casting China's high value-added castings are mainly concentrated
in the aerospace field, most of the enterprises are state- owned enterprises. In 2023, the sector grew by 11.2% to $1.045 billion. The production of enterprises in this sector is basically in a saturated state at present, and new capacity is added according to needs. High value-added castings require advanced technology, high-end equipment and high quality materials, which has driven the overall technological progress of the industry. Some private enterprises have also made
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exports have long accounted for a high proportion. In recent years, domestic demand has also gradually developed and become an important direction for future growth in this sector. At present, 55% of the products of such enterprises still rely on exports, and this proportion will decline in the later period. Overall, the sales of investment casting industry in Chinese mainland in 2023 was $3.536
billion, down 4.3% compared to 2022. Taking into account the depreciation of the RMB yuan relative to the US dollar of about 5%, the growth in yuan terms is around 0.7%. With the development of China's investment casting
market, the supply chain of materials and equipment has also been improved. The market of materials and equipment is expected to grow by about 6% in 2023, mainly from the automobile sector and exports to Southeast Asian countries. According to the overall development of the economy, it
is expected that high value-added casting will still grow at a high speed in 2024. Automobile casting market will grow at a low speed with the growth of China's automobile industry, and the development of general commercial casting is uncertain.
January 2024 ❘ 27
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