China on the upswing

Chinese foreign trade in machinery is still prevalently characterized by positive signs and seems to have picked up momentum after a slowing trend witnessed in late 2011 and the first quarter of the current year. Not surprisingly, according to local sources the production of machines in 2011 also exhibited certain difficulties, with a 4.3% drop in delivered units.
Japan confirms its role as primary technology supplier to the Chinese conversion industry, contributing a third of the total imports in the first half of 2012. Germany is second with 25%, while Italy provides 5%, with a value of approximately 115 million euro.
Double- and even triple-digit growth figures continue to be seen in Chinese exports of injection moulding machines, particularly to Thailand (more than tripling with respect to the first half of 2011 to over 40 million euro), Vietnam (+70%), the United States (+170%), and Mexico (+140%). On the other hand, sales to Brazil and Turkey have slowed after reaching impressive peaks in previous months.
Regarding the Chinese conversion industry, on the basis of the local statistics office, production of plastic articles increased by 22% over 2010 levels. However, while it is true that many companies, especially the larger ones, have increased their revenues, an equal number report declines. Almost all of them, however, have witnessed a reduction in profits and this may mean a reduced ability to invest in new technologies, something companies need given the persisting low level of innovation in the installed plants.
In January-July 2012, Chinese exports of plastic products nevertheless increased by 7.5% in volume (up to approximately 4.8 million tons) over the same period in 2011. However, there has been some slowdown since June.