2011 is an opportunity challenge year for the abrasives industry. The implementation of the 12th Five-Year Plan has provided both opportunities and challenges for the abrasives industry. The continued implementation of energy-saving and emission-reduction policies will exert great pressure on the abrasive smelting enterprises in the abrasives industry, but from the current market, the impact of abrasive prices is not significant. In 2011, the abrasive market will be in an integrated adjustment period. It is expected that the price of products in the first half of the year will undergo a period of complicated adjustments, and will improve in the second half of the year and gradually stabilize.

In 2011, the state's support for the development of new industries also brought great opportunities for the development of the abrasives industry, especially for the provision of superhard materials for a broader market. With the continuous improvement of domestic production technology, diamond is widely used as a substitute for ordinary abrasives in grinding discs, grinding wheels, and the like. Therefore, the market for abrasives industry in 2011 will be in a relatively long period of consolidation and adjustment.

Abrasive Abrasive Export PK*** Appreciation Although China's machine tool exports have increased significantly in 2010, the structure of export products is not reasonable. Low-grade resources and high energy consumption products account for a large proportion, and the export product structure needs further optimization.

China Machine Tool Industry Association statistics show that in 2010 China’s machine tool exports totaled US$7.03 billion, an increase of 48.4% year-on-year, including exports of metal processing machine tools of US$1.85 billion, which was a year-on-year increase of 31.3%. The growth rate was significantly lower than the increase in machine tool products. speed. Among the export products, the export volume of abrasives continued to grow at a rapid rate, which was US$1.53 billion, an increase of 100% over the same period of the previous year. Cutting tools and tools became the largest export products in the machine tool industry, accounting for 44.6 percent of the export value of machine tool products. %.

Among these two types of products, resource-intensive, high-energy-consumption products such as low-grade abrasive tools and knives account for a large proportion, while those for relatively higher value-added machine tool products have become smaller, accounting for only 26.3%, compared to 2009. The year-on-year decrease of 3.4 percentage points has not changed the irrational structure of export products.

The continuous appreciation of *** in 2010 has brought adverse effects on China's foreign trade and export enterprises, and the overall export situation of abrasive products is also not optimistic. In 2011, under the influence of factors such as the "rebalancing" of the global economy, the pressure for *** appreciation has increased. According to various angles, the actual pressure for appreciation in 2011 was 7.8%. *** Appreciation is not conducive to the export of abrasive products, but with the gradual recovery of the international economy in 2011, the demand for abrasive abrasives in the international market will increase, and the international market will have a certain degree of improvement. For the abrasives companies that mainly do domestic sales, the impact of *** appreciation is not significant. However, for the domestic market, it may cause more foreign trade companies to turn to domestic sales and aggravate the domestic market for abrasive abrasives.

Abrasives Product Price PK Raw Material Prices In 2010, the increase in raw materials prices for abrasives promoted the sharp increase in the prices of abrasive products. In 2011, facing the domestic high raw material market, the price of abrasive products will usher in a new year of turbulence and adjustment. From the situation at the beginning of the year, the abrasive raw materials, such as cotton and resin, have been rising continuously. It is expected that the prices of abrasive products in 2011 will continue to be complex. It is estimated that the price changes will be greater in the first half of the year and the market price will tend to be stable in the second half of the year.

In the surge of abrasive abrasive products in 2010, the price of coated abrasives was the largest, and the frequency of price increase was the highest. From 2011, the price of coated raw materials for cotton and resins, coated abrasives in 2011 The price is still high fever is difficult to retreat, the first half of the price fluctuations will be relatively large, the second half will be relatively stable. In 2010, the growth rate of consolidated abrasives was small, and the prices of grinding wheels, cutting discs and other products increased by about 6% to 10%. The cost pressures for bonded abrasives in 2011 will rise, and the change in raw material prices will become the main factor in the price changes. factor. Abrasive products are expected to stabilize under the changes in coal prices.

Abrasive abrasive products prices PK labor costs in 2011, with the recovery of the domestic economic situation, the country is generally used labor shortage, abrasive abrasive industry is no exception. In the face of the shortage of labor in the domestic market, the cost of labor for abrasives companies has also greatly increased. According to Luo Baihui, a member of the association, the current employment problems in the industry have become more prominent. The wages of general workers and skilled workers have risen considerably after the year. This undoubtedly aggravated the cost of abrasives production enterprises and prompted the use of abrasive products. The price increase.

In 2011, the issue of employment of abrasives and abrasives companies was presented. The substantial increase in wages of first-line skilled workers will bring even more severe challenges to the prices of abrasive abrasive products.

Abrasive Products Price PK Supply and Demand Market Currently, China's abrasive abrasive product market is in an overall oversupply market. In 2011, with the recovery and development of the domestic economy, abrasives in many regions will be built with new plant and delivery room equipment. In 2011, the overall market for abrasive products will also become a situation where supply exceeds demand.

In 2011, the corundum market was facing overcapacity. The corundum production companies in Shanxi, Henan, and other regions started operations. Coupled with the new production lines in many regional companies, the corundum enterprises faced more severe market competition and the product prices should have a certain decline. Due to the high cost, the decline will not be too great. From the perspective of domestic silicon carbide market demand, the development momentum of silicon carbide in 2011 is good. In addition, the development of the national photovoltaic industry has brought a broad market prospect to silicon carbide. The production capacity of silicon carbide has been relatively optimistic in the first half of 2011. It remains to be seen in the second half of the year that the production of green silicon carbide powder in 2011 will remain cautiously optimistic. attitude.

With the continuous increase in the production scale and product quality of domestic superhard companies, the price of diamonds has been getting cheaper and cheaper. The price of the cheapest diamond products on the market has dropped to around 0.2 yuan/carat. At present, the capacity of domestic superhard material companies cannot satisfy domestic demand, and the market for superhard materials is vast. It is estimated that the price of diamonds in 2011 will maintain a narrow range of fluctuations, and prices will not change much.

From the above analysis, the abrasive abrasive market in 2011 will continue to maintain a complex trend. Abrasives are in a period of market transition and consolidation. Due to rising inflationary pressures, raw materials, and labor costs, product prices will not fall too much. 2011 In the first half of the year, product prices may remain high for a period of time and the price trend will tend to improve and gradually stabilize in the second half of the year. The prices of abrasive abrasive products in 2011 will be in the period of market consolidation adjustment.

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