China Machinery Industry Federation (CMIF) has released its monthly analysis report for June. According to this report, in the first half of the year, China's total foreign trade of machine tools amounted to US$13.742 billion, an increase of 53.48%. Imports contributed US$10.378 billion, an increase of 60.04%, and exports US$3.364 billion, an increase of 36.23%. This led to a trade deficit of US$7.015 billion in this review period. Compared to the first five months, imports growth saw a slowdown, while exports growth slightly accelerated, resulting in an expanding trade deficit despite a reduced growth, says the report. General trade of machine tools rose by 54.64% year on year to US$9.289 billion in the first half year, including US$6.527 billion from imports and US$2.763 billion from exports, representing increases of 62.92% and 38.06% respectively. The report remarks that compared to the first five months, the total import value growth became faster, contrary to the decelerating growths in total foreign trade value and total export value. Processing trade amounted to US$99 million, a slowed growth of 33.99% from the same period of last year. Imports increased by 65.59% to US$19 million while exports rose by 28.25% to US$81 million.

Switzerland becomes China's fourth largest foreign supplier

In the first half year, China imported machine tools from 73 countries, four more than the same period of last year. Imports from Japan were the largest, amounting to US$4.175 billion, a slowed growth of 92.87%. Following was those from Germany and Taiwan, which rose by 43.11% and 22.88% respectively. In the fourth place was those from Switzerland, which, replacing those from Korea, increased by 207.66%. The report points out that China has a heavy reliance on Japanese machine tools, as the growth rate remained to be over 90%, though it was on a continuous fall.

China's exports to Russia and Brazil on fast growth

In the first half year, China exported machine tools to 187 countries. This number represented a drop compared to the same period of last year. The largest export destination of Chinese machine tools remained to be the US, with the total export value reaching US$462 million, an increase of 35.90% year on year. Same as last year, it was followed by Japan, Germany, India and Hong Kong. Exports to Taiwan rapidly grew by 97.98%. In addition to these traditional export destinations, the monthly analysis report remarks that China's machine tool exports to the Russian Republic and Brazil both increased year on year by over 70%, significantly higher than the figures registered in May.

Imports of major products grow slower

By product type, foreign trade of tools and machine tool accessories saw slower growths, by 30.01% and 30.74% year on year respectively. Foreign trade of all other categories of products achieved growth. Imports of polishing machines and non-ferrous metal processing machines more than doubled. Those of casting machinery grew slower in June than in May. Compared to the first five months, only imports of cutting tools slightly grew, while those of all other products rose slower, with the growth rate of casting machinery imports falling most, by 43.65%. The import growth rates of modular machine tools and grinding wheel machines also dropped by more than 20% each.

Export value of machining center largely rises

As far as exports are concerned, the export value of machining centers more than tripled, reaching US$47.77 million in June alone. Compared to May, exports of metal processing machines largely increased with an apparently accelerating rate. On the contrary, the export growth of low-end products such as abrasives, grinding tools and cutting tools decreased. The report adds that in the first six months China cumulatively imported US$4.650 billion worth of CNC machine tools, representing an increase of 54.83% and accounting for 76.48% of the total imports of metal processing machine tools. And all products saw an increasing trade deficit, indicating that China remains heavily dependent on foreign CNC machine tools. Machining centers were the main category of CNC machine tools imported, with the cumulative import value reaching US$2.285 billion in the first half year, which accounted for 49.13% of the country's total CNC machine tool imports, an increase of 2.62 percentage points from a year ago. Imports of other CNC products also grew by over a quarter. Particularly, CNC grinders registered an 85.64% increase. Exports of CNC machine tools saw big differences between export volume and export value. The growth rate also largely varied from one product category to another.

Exports of machining centers, CNC grinders and CNC EDMs all rose by over 100%, but those of CNC drilling, boring and milling machines registered negative growths. The report also reveals that the import prices of machine tool industry products rose rapidly, with those of grinding wheel machines, polishing machines and non-ferrous metal processing machines increasing by over 100%. Compared to import prices, export prices grew slower on average, and the prices of exported modular machine tools, machining centers and polishing machines recorded different degrees of decreases.