Hardware Tool Manufacturing Status Analysis

Among the tools used in the domestic hardware manufacturing industry, the proportion of cemented carbide tools has reached more than 50%, and the problem of disconnection between the supply and demand structure has become very serious. The consequence is that a large number of high-speed steel cutters that are surplus are exported at a low price or sold domestically. At the same time, high-efficiency carbide cutting tools have to rely on large amounts of imports. The import volume has increased from 0.9 billion US dollars in 2001 to 450 million US dollars in 2005. 3.6 billion ***). According to Luo Baihui, the secretary-general of the International Model Association, China’s current annual sales of tools are 14.5 billion yuan, of which cemented carbide tools account for less than 25%, which is not only far from the structure of international market tool products, but also can not meet the domestic manufacturing industry. The increasing demand for carbide tools.
China currently produces about 80,000 tons of high-speed steel annually, which accounts for about 40% of the world's total production, and consumes a large amount of valuable rare resources such as tungsten and molybdenum. This kind of blind expansion and low-level repetition has resulted in a large surplus of high-speed steel cutters and has to be sold at low prices, which has resulted in a large number of tool-manufacturing companies having low efficiency.
China currently produces 16,000 tons of cemented carbide annually, which also accounts for about 40% of the world's total production. However, the highest added value of cutting inserts in hard alloy products is only 3,000 tons, accounting for only 20%. This situation, on the one hand, led to insufficient supply of cemented carbide tools that are urgently needed in the country. On the other hand, the precious carbide resources have not been fully utilized.
In terms of economic efficiency, China’s annual sales revenue of cemented carbide is about 560 million U.S. dollars; Japan is only 40% of China’s output, but sales revenue is as high as 2.633 billion U.S. dollars, among which blade (tool) accounts for 72% of the total, making resources available. With full use, the company has also obtained good benefits. China's tool industry should get some useful inspiration from it.
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