Domestic export of cutting machine slows down

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According to the statistics of the General Administration of Customs, this year, due to the impact of the recovery of the global economy and the recovery of demand, the export of CNC cutting machine equipment in major regions in China maintained an overall growth trend, but its export growth rate slowed down significantly compared with the same period of last year. Looking ahead to the future of the CNC cutting machine equipment export market, Dongguan Zhenlei Electrical and Mechanical Co., Ltd., which has years of experience in overseas sales of CNC cutting machines, believes there are still three major constraining factors that restrict the rapid growth of domestic CNC cutting machines:
1. The sluggish global economic recovery and the debt crisis in Europe and the United States led to the unpredictable external demand for CNC cutting machine equipment. The Euro zone’s purchasing managers' index (PMI) fell to 50.8 in June from 53.3 in June, the largest single month since November 2008. Decline; US ISM manufacturing index in July was 50.9, a decrease of 4.4 points compared with June; 2 were only slightly above the critical point of 50.0, indicating that the economic recovery in Europe and the United States approached stagnation. In addition, the mutual resonance between the U.S. debt and the European debt crisis has led to an increase in the risk of a second bottom of the global economy. The U.S. Congress’s recent plan to increase the U.S. debt ceiling has just eased the U.S. debt crisis. The European debt crisis has continued to spread to Italy and Spain, the two largest eurozone economies. Both countries’ 10-year bond yields have hit record highs in 14 years. The record is close to the national Treasury yield record of 7 countries when Greece and other countries sought international financial assistance. On August 5, Standard & Poor's downgraded the long-term sovereign credit rating of the United States from AAA to AAA in 70 years, resulting in a sharp decline in global financial markets, pessimistic sentiment, and the risk of the global economy falling back into recession. The decline in external demand in the major export markets and weakened capacity for absorption have made the export of CNC cutting machines in China facing a severe situation.
2. Trade Protection intensifies to further increase the export pressure of CNC cutting machine equipment In the context of slow economic recovery, sovereign debt crisis and high unemployment rate, major export markets such as Europe and the United States have strengthened trade protection and continue to increase trade barriers to China. On July 1, the new version of the EU RoHS directive was upgraded five years later. Compared with the original directive, the scope of control of the new directive was extended to all electrical and electronic equipment. In addition, the new directive also adds new rules for the use of restricted substances, implements stricter enforcement and equipment recall mechanisms, and stipulates that equipment must be affixed with the CE Mark European Common Market Safety Mark. The U.S. Department of Energy also recently established two final regulations on energy saving and an energy conservation standard for exporters of commercial and industrial equipment in Hong Kong and China. In addition, trade protection attention has gradually spread to the emerging markets of China's CNC cutting machine equipment exports. In recent days, major member states of the Yugoslavia, such as Brazil and Argentina, called for strengthening restrictions on imported equipment to protect regional industries and release a strong signal of trade protectionist escalation. In June of this year, Argentina issued a resolution to impose an anti-dumping tax of up to 136.92 on electric fans originating in China. The period of validity is five years. This is after the high anti-dumping duty of 138.26 imposed on Chinese-made electric heaters on May 5. Another important trade protection measure.
3. The increase in operating costs has caused the export profits of CNC cutters to suffer a loss. The recent survey report of the China CNC Machine Tool Trade Association shows that raw material prices have risen sharply, labor costs have risen, logistics costs have risen, renminbi upgrades and financing difficulties, power shortages, etc. Comprehensive factors, since the end of last year, CNC cutting machine production costs generally rose 10-20; CNC cutting machine equipment export profits overall level is low, the average is only 3-5. At the same time, in the absence of external demand, companies did not dare to raise prices easily: 77 companies responded to the decline in profits, of which corporate profits of 44 fell by more than 20. Some home appliance companies report that most of the export orders that have already been received are on the verge of losses. The overall business pressure is not optimistic.
To this end, it is recommended that: First, pay close attention to the progress of debt crisis in Europe and the United States and the economic development of major member states, timely release early warning information, and guide enterprises to actively explore emerging markets to help companies increase their ability to withstand risks; second is to strengthen trade protectionism The study of trade barriers and the full use of legal relief channels and the WTO dispute settlement mechanism to actively respond to trade friction and protect the interests of domestic companies; Third, actively encourage export enterprises to accelerate technological upgrading and equipment structure adjustment, create a good external for the creation of independent brands surroundings.
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