Machinery industry running situation and steel demand outlook

Since 2005 the overall operation of China's machineryindustry, the situation in a very good investment,
industry point of view, is expected compared to lastthus boosting the oil and petrochemical machinery
year, the annual output value and sales revenue willmanufacturing industry. This year the industry is still
grow 20%; profits will remain level or slightly increaseexpected to achieve 30% growth.
over the previous year; export earnings to rise 30%General machinery manufacturing industry: fans,
about. In 2006, the domestic machinery industry iscompressors, pumps, valves and other products as
expected to reach 15% of sales can increase. Fromrepresented by the general machinery manufacturing,
the large environment, this is the "Eleventh Five-Yearby electricians, heavy-duty mining machinery,
Plan", the year is the year of general localpetrochemical equipment manufacturing supporting
government. GDP growth is expected at 8% ~ 9%.demand pull, can be achieved this year 20% 15%
On the other hand, from the machinery industry'sgrowth.
own conditions, the current domestic demand andMachine tool industry: With the automobile,
more normal, exports have been strong, also have tomotorcycle, heavy electrical industry, investment and
maintain 15% growth possible. Run trends in theother major users of the fall peak, speed machine
major sub-sectors as follows:tool industry will continue to fall this year the industry
Power equipment manufacturing industry: This year,will grow 15% to 20%.
power generation equipment orders to be delivered isAutomotive industry: the automotive industry this
still at its peak, by their drive, power transmission andyear will show a steady trend of development in the
industry task in full, the entire electrical equipmentenergy-saving products including passenger vehicles
manufacturing industry is expected to reach 20% ofare popular, low-emission vehicles has grown;
the growth, production of power equipment in 2007motorcycle industry as a whole is stable. Efficiency of
began to fall from the peak. Currently the factorythe sector is far greater than the difficulties of
has been in decline in order prices, orders after 2008growing sales.
is obviously insufficient. Compared with powerAgricultural Machinery Industry: The central and local
generation equipment, high voltage powerfinancial subsidies to farmers to purchase agricultural
transmission equipment manufacturing cycles will bemachinery continue to increase the intensity, while
an appropriate delay, which will help ease the declinecontinuing to take measures to Farmers and
of power generation equipment.therefore agricultural production and marketing is
Heavy mining machinery industry: As the metallurgy,expected to continue to improve, the growth rate is
coal, mining and other major user industries intensityexpected in about 20%.
of technological transformation of key enterprises,Other industries: hydraulic, seals manufacturing growth
the demand for advanced technology and equipmentof 10% to 15%; parts manufacturing 20%; bearing
will continue to maintain a high level, coupled withindustry of 8% to 10%; construction machinery
power generation equipment and petrochemicalmanufacturing industry of around 5%; mold
equipment manufacturing industry to the powermanufacturing 15% to 20%; culture Office machinery
station cast forgings and heavy container to maintainmanufacturing 15%; internal combustion engine
high demand, heavy mining industry can still beindustry, 5% to 8%; environmental protection
expected to achieve 20% growth.machinery manufacturing 17%; food and packaging
Petroleum and petrochemical machinery industry: themachinery manufacturing 10% to 15%; refrigeration
oil and petrochemical products demand, against theand air conditioning machinery manufacturing 15% to
backdrop of rising oil prices, oil and petrochemical20%; Printing Machinery manufacturing 10%.