Domestic metal die steel market has a bright future

Benefiting from the rapid development of the downstream automotive, electronics, and plastics industries, China's mold industry has made considerable progress. The industry revenue from the mold industry grew rapidly from 14 billion yuan in 2003 to 140 billion yuan in 2010, an increase of 10 times in 8 years, and the average annual growth rate was above 28%. The financial crisis only slowed down the growth rate of the industry to 12.5%, which is still far higher than the growth rate of GDP. It can be seen that the development momentum of China's mold industry is very strong.

In general, mold makers need to customize the material used for the mold—die steel—according to the customer's needs, then purchase the appropriate mold standard parts to build the mold frame, and finally design the mold core to form the mold. Therefore, the industry chain of the mold industry mainly includes three sub-sectors: mold steel (raw materials), mold frame (standard parts) and mold (finished products).

Die steel imports have a promising future. Die steel refers to the type of steel used to make the mold. It is the mold base and the raw material for mold making. It directly affects the service life and molding quality of the mold. In 2010, China's mold steel consumption reached 12.9 billion US dollars, an increase of 20% over 2009.

For five consecutive years, China has become the world's largest consumer of mold steel, accounting for 21% of global consumption. At the same time, the domestic output value of mold steel was only US$7 billion. Although it is already the third largest producer of mold steel in the world, the gap between supply and demand reached 5.9 billion. The US dollar has an import dependency of as high as 46%, and the materials for high-grade molds and export molds are almost all imported. With the domestic enterprises gradually mastering the production technology of die steel, the development prospects of the domestic die steel industry are promising. In 2010, the industry growth rate reached 37%.

Standard parts coverage increases the demand for drive formwork. The formwork is the support of the mold and is the standard part of the mold design. For a typical mold, many of the structures are the same except for the molding portion of each mold. The use of mold bases and mold standard parts can shorten the mold production time by 25%-40% and save the mold processing time by more than 25%. The time saving for the mold manufacturers is very considerable, so the mold design manufacturers generally use standard mold bases to do Mold.

At present, the use of mold standard parts in China is still relatively backward, the coverage rate is estimated to be only about 45%, while the coverage rate in foreign mature markets can reach more than 70%. The increase in the coverage of standard parts plus the increase in mold demand will drive the demand for formwork.

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