Los Angeles, CA (PRWEB) December 17, 2011
Over the next five years, the Iron and Steel Casting industry in China is forecast to experience revenue growth by an average annual rate of 9.7%, to reach $137.6 billion in 2016. Growth will be lower than it was over the past five years due to the following: expected appreciation of the RMB; Europe's volatile economic situation, which will negatively affect Chinese exports; and overall slower growth in market demand. In addition, the prices of raw materials, especially iron ore, are forecast to increase, adding a burden to the industry, according to IBISWorld, America’s largest publisher of industry research.
China has grown to be the largest production base for iron and steel casting in the world. By volume, China's annual casting output has been the highest in the world for the past seven years, producing 16.3 million tons of castings in 2002, equal to the United States' and Japan's combined output. This increased steadily to 33.5 million tons in 2008. IBISWorld forecasts that China's casting output will total 46.6 million tons in 2011.
Over the past five years, low labor costs in China attracted increased investment from foreign casting enterprises, including those from the United States, Japan, Germany and Britain. However, the technological content of casting made in Chinese foundries was far lower than those produced in the United States, which ranked second in the world in casting output. Price surges in raw materials, such as pig iron, coke and steel scrap, also negatively affected the industry over the past five years. With these higher costs and lower quality, profitability decreased. In the next five years, enterprises will need to invest in advanced equipment and technology to increase efficiencies, add value to the products and reduce defective goods, which currently make up about 20% of total output.
In 2010, the industry gradually recovered from the financial crisis. Industry revenue increased by 28.5% to $72.7 billion due to accelerating casting output growth and rising product prices. Domestic demand is expected to grow in 2011 due to the rapid demand growth in nuclear and hydropower industries and the $590.8 billion government investment on irrigation construction. This will help industry revenue to grow by 19.0% for the year.
For more information, including profit levels, market shares, product segmentation and more, download IBISWorld’s report on the Iron and Steel Casting industry in China.
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Firms in the Iron and Steel Casting industry cast iron or steel and manufacture steel or iron products. The manufacture of cast iron and steel products involves melting the metal to be used, pouring it into a mold, letting it cool and then knocking out the casting. Final cast products that are manufactured in this industry include pipes, valves, parts, components, hydraulic pressure units and pneumatic units, from steel and iron.
The Iron and Steel Casting in China Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on 200 Chinese industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.cn or call 1-800-330-3772.
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