China mining machinery industry grew a lot in 2011. But compared with the Crusher Wear Parts China successive decades of rapid growth, the main economic indicators were in the overall fall. The profit growth was lower than the sales growth in 2011. The reasons were as follows: first, it was related to the machinery products prices, the oversupply and market saturation resulted in the slow growth. Second, the production costs continued to increase.
With the continuous development of society, the limited raw material prices were also rising, water and electricity prices were getting higher and higher, all of those greatly increased the costs of production. The rising product prices made the growth rate of enterprise orders decreased significantly. The surveyed statistics of key companies in machinery industry showed that the growth rate of total orders had dropped to 6% in the end of this year, which was significantly lower than the level of above 30% at the same period of last year. The shortage of orders was further exacerbating the contradictions of oversupply. Third, the overcapacity led to the oversupply of some products, which was also contributed to the sliding of industry margins.
In the context that the slowdown of domestic demand becomes the main constraints of the industry running, the imports are still large, and the import growth is still so strong, which only shows that the domestic supply is still not meet the various needs. Through the foreign trade surplus of China machinery industry achieved $12.4 billion in 2011; the surplus is mainly due to the low-end processing trade in the industrial chain. The competitiveness of our country is mainly embodied in the cost-effective advantages of low-end products. There is still a huge gap with the world advanced level.
