Business Locations ... China Wire and Tube Machinery Import-Export Analysis .... opportunities for firms within Wire and
MARKET REPORT WIRE INDUSTRY IN CHINA
September 201 2012
1
Index Part 1 – China Wire Industry General overview
Page 4
Current Performance
Page 5
Enterprises and wages
Page 6
Part 2 – China Wire Users Markets Products & Services
Page 8
Demand Determinants
Page 9
Major Markets
Page 10 10
Business Locations
Page 11 11
Part 3 – Opportunity for Italian Company Competitive Landscape, Industry Globalization
Page 13
Opportunity for Future Development
Page 14
Main Research Projects in next 5 years
Page 14
Main Trends of New Projects in next 5 years
Page 15
Hot Technology and Products in the next 5 years
Page 15
Part 4 – China Wire and Tube Machinery ImportImport -Export Analysis China Import
Page 17 17
China Export
Page 25 25
Appendix
Page 27 27
2
PART 1 CHINA WIRE INDUSTRY
3
General overview China’s Wire and Cable Manufacturing industry developed rapidly to 2008 due to very strong domestic demand and high economic growth across China. with low growth in 2009. The industry is a major consumer of cooper and aluminum, the fundamental raw materials for wire and cable production. Strong demand for the industry’s products stimulated rapid industry expansion. China’s electricity and power consumes about 45% of the wire and cable manufactured in China each year, which has a major influence on this industry. In line with its long-term economic development program, China will increase its power generating capacity by 35 million to 40 million kilowatts by 2020, which will be a major demand source for this industry. Strong building construction growth, as well as robust growth across China’s equipment manufacturing industries also created high demand for wires and cables for equipment and building use. A wide variety of China’s industries, such as transportation, construction, home appliances and automobiles, have also grown strongly in recent years. However, the global recession negatively affected this industry in 2009 as downstream demand slowed. However, the recovering global economy stimulated the rapid growth of this industry during 2010. It is forecasted that in the five years through 2016, total revenue of the Wire and Cable Manufacturing industry in China will increase at an annualized rate of 13.1% to $311.7 billion. Growth is forecast to be slower in the near term due to the impact of global financial crisis that started in 2008, and as the industry continue to mature.
4
Current Performance The Wire and Cable Manufacturing industry in China provides an indispensable basic material for the production of various kinds of motors, electric apparatus, instruments, automobiles, machine tools, machinery and other equipment. Wire and cable are also essential products for China to continue to develop into an information-based and electrified country and also supports many important upstream industries in the economy. China’s Wire and Cable manufacturing industry developed strongly to 2008, before slowing in 2009 and growing rapidly again in 2010. China has now become the third-largest output country of this sector in the world.
Industry revenue Industry revenue increased from $62.9 billion in 2006 to $168.2 billion in 2011. This represents an annualized increase of 21.7%. During 2010, the recovering global economy and development of China’s information sector, construction sector, home appliance industries and automobile industries stimulated demand for wire and cable. In addition, the rapid development of the domestic 3G market also contributed to growth in this industry. It increased by just 1.0% in 2009 due to the negative influences of the global recession, resulting in lower demand from many of the industry’s major downstream industries. Power cable output increased by only 2.1% from the year, with low output growth in other product segments within the industry. Its growth was strong in the first half of 2008 as domestic demand and export demand remained high. However, with the global financial crisis that started in the second half of 2008, industry growth dropped dramatically in the second half of the year. Overall, industry revenue increased by 25.6% for the year, with existing supply contracts contributing to the strong annual growth.
5
Enterprises and wages In the five years though 2011, enterprise number increase at an annualized rate of 9.2%, from 3013 in 2006 to 4680 in 2011. With strong industry revenue growth, in the years to 2008, enterprise number increased strongly, with peak growth of 28.3% in 2008. During 2009, the number of enterprises in the industry declined due to the closure of some small firms that unable to compete in the industry when faced with higher raw material costs and increased pricing competition. In 2009, the negative impact of the global recession resulted in enterprise numbers declining by 2.2%. In 2010, with the global economy recovering and the rapid development of China’s 3G market, this industry returned to growth, with enterprise number increasing by 4.7%. In 2011, the number of enterprises is increasing by 2.0%. Total industry wages increase at an annualized rate of 32.2% in the five years to 2011, from $1.26 billion in 2006 to $5.11 billion in 2011. Total industry wages as proportion of industry revenue increased from 2.0% in 2006 to 3.0%in 2011, due to wages growth across China, and limited increases in capital investment during these years.
6
PART 2 PRODUCTS & MARKETS
7
Products & Services Power cable in Chinese industry’s main products segment and is account for 29% of total industry revenue in 2011. Power cable is used in transmitting-voltage electricity that usually ranges from 220V to 500kV and above. The industry’s second-largest products segment is wire and cable products for electrical equipment, which is account for 19% of total industry revenue in 2011. There are many types and specifications of wire and cable products for electrical equipment, and their voltage is general less than 1kW. These include anti-fire wire and cable, and anti-burning wire and cable, and are used in a wide range of diverse industries. Demand for wire and cable products is therefore increasing in China in line with the development of these downstream industries. Wining wire and exposed wire are also important product segments in this industry, is to account for 18% of industry revenue respectively in 2011. Winding wire is mainly used in the manufacturing of instruments and meters. Exposed wire is a pure conductor metal without an insulated layer, and is used in housing and switch cabinets. Communication cable and accessories of wire and cable are account for 12% of industry revenue respectively in 2011. With increasing investment in information industries and the rapid development of China’s 3G market, demand for communication cable has increased steadily in recent years and will continue to increase in future years. Wire and cable accessories include cable terminals, cable tie-ins, and connection tubes.
8
Demand Determinants Economic growth continues to be high in China, which has contributed to strong within China and, as the use of wire and cable in various industries increases, demand and revenue within this industry increases. Different industries need different types wire and cable. For example, the power generation industry requires trolley wire of high voltage, cables for nuclear power stations, and frequency conversion cable. Various wire and cable products are used in a number of applications including the construction, automobile power generation, railway, shipping and household appliance industries. As these industries continue to develop, they require various wire and cable products. Further, as these industries are currently developing strongly in China, there are major potential opportunities for firms within Wire and Cable manufacturing Industry in China to expand and grow. Moreover, the development of new technology and the production of high quality products will promote new demand for the industry’s products. National and provincial regulations have encouraged the development of the industry, which have focused on providing a better operating and market-focus environment for the industry. This has led to increased innovation and development within the industry, and greater opportunities to increase revenue.
9
Major Markets The majority of the industry’s products are sold to power generation industries. This segment is account for around 41.3% of industry revenue in 2011. The construction of power generation plants and facilities in China requires large volume s of wire and cable. The second-largest market segment is information industries, which is account for 32% of total industry revenue in 2011. Information transmission includes telephone cable, television cable, data cable and composite cable. As information technology industries are developing and expanding in China, the requirement for great volume of wire and cable will increase in future years. Machinery and household appliances, and instruments and meters are account for 9% of industry revenue, respectively in 2011. Many manufacturing industries require large volume of wire and cable, such as the automobile industry and electrical equipment industries. The development of these downstream industries is expected to drive new applications of wire and cable in the future. Exports make up 5.9% of industry sales in 2011. China is the third-largest output country of wire and cable in the world, and export play a moderate role in the industry. The share of exports is expected to slowly decrease as international demand decreases compared with domestic demand, and as competitive strength diminishes due to the appreciation of China’s Yuan.
10
Business Locations Industry activity is concentrated in Jiangsu, Guangdong and Shandong Provinces, in terms of industry revenue, accounting for in 2011 respectly of 29%, 12.5% and 11.8%. These three provinces make up 53.3% of industry revenue in 2011. The industry show higher efficiency in Jiangsu and Shandong, where employment is account for 23% and 8.1% of the industry’s total in 2011. This is because the industry’s firms in these provinces are able to benefit from economics of scale and advanced technology, are close to imported raw materials, are closer to clients and downstream industries, and have invested heavily in technology to reduce labor inputs. Guangdong is a well-developed province in China. Many industries in this province are growing strongly, which results in further industry development for wire and cable manufacturers. This also indicates increasing downstream demand in the province for the industry’s products. There are few wire and cable manufacturers in the North West China region and the South West China region, such as Xinjiang, Gansu and Yunnan. The economic environment of the North West China region and the South West China region is not strong as in other parts of China. The Chinese government is attempting to promote commerce in these regions by offering preferential policies to develop various industries. This will help to stimulate the industry in these regions in future years.
11
PART 3 OPPORTUNITY OPPORTUNITY FOR ITALIAN COMPANY
12
Competitive Landscape The Wire and cable Manufacturing Industry in China include large number of small and medium-size enterprises. The top four firms that operate in this industry are account for around 7.3% of industry revenue in 2011. This shows that industry revenue is spread across a large number of industry participants. There are many manufacturing that operate on a small scale and are privately-owned due to low-to-moderate barriers to enter the industry. However, the majority of these companies service a small geographic region and lack substantial capital, technologies and skilled employees. The low industry concentration level also reflects the diverse nature of the industry’s products. Firms tend to focus on particular wire and cable products or markets. Only some large firms can manufacture and extensive range of wire and cable. With price competition and falling profit margins, it is forecasted that industry concentration will change little in the future, despite some consolidation and merger activity.
Industry Globalization The Wire and Cable manufacturing Industry in China is focus in local brands, and there is every few foreign capital or joint-venture. China has become the third-largest output countries of wire and cable in the world, behind the US and Japan, and many countries import these products from China. However, China still import high quantity and specific wire and cable products due to domestic technology within the industry. Also, the development and expansion of many industries, such as power generation, automobile manufacturing, construction, railway, and other require advanced wire and cable products that are not currently being produced domestically. Globalization is also low due to the low levels of foreign ownership of the industry’s firms in China, as well as limited Chinese investment in wire and cable manufacturers in foreign countries. 13
Opportunities for Future Development (Chinese Government direction) o The input in and development of Mid-West China. o The construction of the Three Gorges Power Station on the Yangtze River. o Increase in the investment in infrastructure. o Enhancing the construction and renovation of the electric power networks. o Development of telecommunication, computer networks and broadcast and television networks. o The building industry will become a mainstay industry whose development will be emphasized. o The car industry will become a new sector for economic growth. o The development of urbanization. o The increase in the people’s living standard in the country. o Especially that in the countryside, and the urbanization of countryside.
Main Research Projects in Next Five Years
In the Twelfth Five-Year Development Plan for the Wire and Cable Industry, below 9 research projects are listed as below: Basis of high voltage XLPE cable applications Cables for Marine engineering Optical fiber perform products Superconducting cables Wire and cable materials recovery technologies Reliability and application of China-made high-voltage over head transmission lines composite-enhanced core materials o High solids paint and coating process o Cycle load-carrying capacity and real-time current-carrying capacity o o o o o o
14
Main Trends for New Products in the Next Five Years o o o o o o o o
R&D of 220 KV high voltage cable adapter kits Domestic production of Class 1E K1-type cables for nuclear power generation survive Development and improvement of cables for aerospace Development of cables for high-speed rail transport Development of new fiber-optic Development and improvement of increase-volume heat-resistant aluminum allay Development of high-voltage plastic insulated DC cables Development of anti-ice leads, self-damping conductors, low corona wires, corrosion-resistant wires and other new cable series
Hot Technologies and products in the Next Five Years
o o o o
Cables for Marine Engineering Optical Fiber Perform Products Products Related to High-pressure and Extra-high Pressure Cable lines Cables for High-speed Rail Transportation
15
PART 4 CHINA WIRE AND TUBE MACHINERY IMPORTIMPORT-EXPORT ANALYSIS
16
1. CHINA’S WIRE AND TUBE MACHINERY IMPORT China Total Import by countries Millions of USD January - December Rank
Country -- World --
% Share 2009 20 09
2010 20 10
%Change
2009 20 09
2010 20 10
2011 20 11
2011 20 11
11/ 11 /10
1,782.09
1,981.9
2,213.7
100
100
100
11.7
1
Germany
584.53
537.77
652.39
32.8
27.13
29.47
21.31
2
Japan
322.89
396.72
563.93
18.12
20.02
25.48
42.15
3
United States
175.43
231.39
207.93
9.84
11.68
9.39
-10.14
4
Korea, South
93.78
132.72
187.00
5.26
6.7
8.45
40.9
5
Italy
167.35
249.86
131.47
9.39
12.61
5.94
-47.38
6
Taiwan
69.90
104.93
124.80
3.92
5.29
5.64
18.93
7
United Kingdom
56.82
56.88
44.07
3.19
2.87
1.99
-22.52
8
France
52.13
48.88
42.04
2.93
2.47
1.9
-14.01
9
Switzerland
18.87
34.33
36.02
1.06
1.73
1.63
4.93
10
Sweden
47.07
30.53
35.07
2.64
1.54
1.58
14.87
Source of data: China Customs
Due to the global crisis, the import compare with 2010 of Italian machinery in 2011 have a -47.38% decrease, and drop from 4th place to 5th. In 2011 it is worth of more than 131.47 Millions of USD, with only 5.94% of market share. Germany always ranks on the top for the China import on Wire and Tube machinery industry. Millions of USD January - June Rank
Country
2010 20 10
% Share
2011 20 11
2012 2012
2010 20 10
2011 20 11
%Change
2012 2012
12 /11
-- World --
921.89
1,087.63
928.63
100
100
100
-14.62
1
Japan
181.68
277.69
215.05
19.71
25.53
23.16
-22.56
2
Germany
247.35
329.91
198.39
26.83
30.33
21.36
-39.87
3
Italy
128.37
66.43
115.38
13.93
6.11 6. 11
12.43
73.68
4
United States
104.38
104.23
107.41
11.32
9.58
11.57
3.06
5
Korea, South
51.38
96.83
92.93
5.57
8.9
10.01
-4.02
6
Taiwan
47.33
70.37
43.08
5.13
6.47
4.64
-38.79
7
Austria
16.52
16.14
19.76
1.79
1.48
2.13
22.44
8
Belgium
7.49
10.26
18.13
0.81
0.94
1.95
76.68
9
Sweden
17.76
15.32
17.02
1.93
1.41
1.83
11.08
10
France
21.26
10.70
16.26
2.31
0.98
1.75
51.94
Source of data: China Customs 17
As far as China’s wire and tube machinery import is concerned, Italy stands at the fifth position as a world supplier country to China in 2011 but grew up to third position in the first half of 2012. Italy achieved 115.38 Millions of USD which has the biggest increase +73.68% with 12.43% market share compare to other first ten supplier country in 2012 from Jan to Jun. This performance of Italy in the first half of 2012 is very significant especially if compared with Germany’s, it nearly decrease -40%, while Italy increases 73%.
China Total Import by products (HS codes) Millions of USD January - December HS Codes
Description - World --
2009 20 09
2010 20 10
2011 20 11
1,782.09
1,981.90
442.55
% Share
%Change
2009 20 09
2010 20 10
2011 20 11
11/ 11 /10
2,213.70
100
100
100
11.7
750.75
1112.02
24.8
37.88
50.2
48.12
1236.59
1095.38
941.45
69.4
55.27
42.5
-14.05
65.74
89.76
105.51
3.69
4.53
4.77
17.55
23.04
31.80
33.14
1.29
1.6
1.5
4.22
14.16
14.21
21.58
0.8
0.72
0.98
51.86
Machines And Mechanical Appliances For 847981
Treating Metal-Rolling Mills
8455
And Rolls Parts Draw-Benches For Bars, Tubes, Profiles,
846310
Wire Or Machines For Working Wire
846330
Without Removing Thread Rolling Machines For Working Metal
846320
Without
Source of data: China Customs
Regarding China import by products, we can see that the main share of Mach For Treating Metal Inc Electric Wire Coil-Win (HS code: 847981). It registered a turnover of 1112 millions of USD in 2011, with 50.2% market share and increase of 48.12% compared to the previous year.
18
Anyhow Metal-Rolling Mills and Rolls (HS code: 8455) still has the big share (42.5%) in the import machinery market, even though they record a negative change of -14.05% compare to previous year.
Millions Millions of USD January - June
% Share
%Change
HS Codes
Description - World --
2010 20 10
2011 20 11
2012 20 12
2010 20 10
2011 20 11
2012 20 12
921.89
1,087.63
322.53
12/ 12 /11
928.63
100
100
100
-14.62
496.31
516.42
35
45.63
55.6
4.05
550.66
525.29
332.68
59.7
48.3
35.8
-36.67
29.77
41.64
57.29
3.23
3.83
6.17
37.57
12.92
17.44
12.43
1.4
1.6
1.34
-28.72
6.01
6.95
9.81
0.65
0.64
1.06
41.29
Machines And Mechanical Appliances 847981
For Treating Metal-Rolling Mills
8455
And Rolls Parts Draw-Benches For Bars, Tubes, Profiles,
846310
Wire Or Machines For Working Wire Without
846330
Removing Thread Rolling Machines For Working
846320
Metal Without
Source of data: China Customs
Regarding China import by products, we can see that the main share of Mach For Treating Metal Inc Electric Wire Coil-Win (HS code: 847981). The market share increase from 50.2% to 55.6%.
Metal-Rolling Mills and Rolls (HS code: 8455) fall down in market share, with only 35.8% market share, and 36.67% decreasing, comparing with the same period last year.
19
China Total Import from Italy by product categories (HS codes) Millions of USD January - December HS codes
Description Italy Metal-Rolling
8455
Mills And Rolls
% Share
2009 20 09
2010 20 10
2011 20 11
167.35
249.86
104.99
%Change
2009 20 09
2010 20 10
2011 20 11
11/ 11 /10
131.47
100
100
100
-47.38
178.98
75.00
62.7
71.64
57.1
-58.1
37.65
38.23
40.43
22.5
15.3
30.8
5.75
22.01
31.58
12.23
13.2
12.64
9.3
-61.29
1.22
0.90
3.79
0.73
0.36
2.88
320.78
1.49
0.17
0.04
0.89
0.07
0.03
-78.12
Mach For Treating Metal Inc Electric Wire 847981
Coil-Win Draw-Benches For Bars/Tubes/Profil
846310
es Wire Or The L Thread Rolling Machines For
846320
Working Metal Machines For Working Metal
846330
Wire
Source: China Customs
The product Thread Rolling Machines For Working Metal (HS code: 846320) has the biggest increase +320.78 % in the wire import from Italy to China. According to the data, the most important products Metal-Rolling Mills And Rolls (HS code: 8455) has average falling-down for -58.1%.
20
Millions of USD January - June
HS Codes
Description Italy Metal-Rolling
8455
Mills And Rolls
2010 20 10
2011 20 11
% Share
2012 201 2
%Change
2010 20 10
2011 20 11
2012 201 2
12 /11
128.37
66.43
115.38
100
100
100
73.68
98.29
42.46
58.90
76.57
63.91
51.05
38.73
19.86
19.29
37.75
15.47
29.04
32.71
95.63
10.05
1.98
17.57
7.83
2.98
15.23
787.49
0.16
2.71
1.17
0.12
4.07
1.01
-56.8
0.01
0.00
0.00
0.01
0
0
0
Mach For Treating Metal Inc Electric 847981
Wire Coil-Win Draw-Benches For Bars/Tubes/Pro files Wire Or
846310
The L Machines For Working Metal
846330
Wire Thread Rolling Machines For
846320
Working Metal
Source: China Customs
In the first half of 2012, all the import from Italy show climb up, comparing with the same period in 2011. In the first half of 2012, the product Draw-Benches For Bars/Tubes/Profiles Wire (HS code: 846310) achieved 17.57 Millions of USD, it has the biggest increase 787.49% with 15.23% market share.
21
China import by country from most important HS code
Metal--Rolling Mills And Rolls (HS code 84 8455 55) Metal 55) Millions of USD January - December Rank
Country -- World --
% Share
2009 20 09
2010 20 10
2011 20 11
1,236.59
1,095.38
%Change
2009 20 09
2010
2011 20 11
11/ 11 /10
941.45
100
100
100
-14.05
1
Germany
474.03
359.08
410.72
38.33
32.78
43.63
14.38
2
Japan
205.91
180.97
162.37
16.65
16.52
17.25
-10.28
3
United States
130.28
160.24
130.35
10.54
14.63
13.85
-18.66
4
Italy
104.99
178.98
75.00
8.49
16.34
7.97
-58.1
5
Korea, South
50.52
49.22
40.03
4.09
4.49
4.25
-18.66
6
United Kingdom
42.28
44.60
31.98
3.42
4.07
3.4
-28.3
7
Sweden
42.73
23.64
24.62
3.46
2.16
2.62
4.14
8
France
21.52
31.27
11.38
1.74
2.86
1.21
-63.6
9
Ukraine
58.57
19.57
10.10
4.74
1.79
1.07
-48.4
10
Austria
14.07
3.46
7.71
1.14
0.32
0.82
122.91
Source of data: China Customs
Italy ranks as the forth world supplier country for Metal-Rolling Mills And Rolls (HS code: 8455) and second as European one, after only Germany in 2011. Millions of USD January - June Rank
Country
2010 20 10
2011 20 11
-- World --
674.41
597.78
1
Germany
225.06
2
United States
3
% Share 2010 20 10
2011 20 11
2012 2012
392.01
100
100
100
-34.42
274.33
126.93
33.37
45.89
32.38
-53.73
76.76
85.72
72.49
11.38
14.34
18.49
-15.44
Japan
118.46
95.81
72.28
17.57
16.03
18.44
-24.56
4
Italy
123.66
44.99
60.97
18.34
7.53
15.55
35.51
5
Sweden
13.30
19.60
11.87
1.97
3.28
3.03
-39.44
6
France
26.63
7.75
10.89
3.95
1.3
2.78
40.43
7
United Kingdom
36.15
24.07
9.51
5.36
4.03
2.43
-60.47
8
Korea, South
12.62
5.31
9.19
1.87
0.89
2.34
72.89
9
Brazil
4.55
4.74
5.44
0.67
0.79
1.39
14.9
10
Taiwan
1.67
5.65
2.38
0.25
0.95
0.61
-57.89
Source of data: China Customs
22
2012 2012
%Change 12 /11
In the first half of 2012, Italy remains the rank of 4th position. It records an increased turnover of 60.97 millions of USD, with a increased market share of 15.55%, compared to 2011 and a great increase of +35.51%, compared to the previous year as well.
Coil--Win (HS 847981) Mach For Treating Metal Inc Electric Wire Coil Millions of USD January - December Rank
Country
2009 20 09
2010 20 10
% Share
2011 20 11
%Change
2009 20 09
2010 20 10
2011 20 11
11/ 11 /10
-- World --
442.55
750.75
1,112.02
100
100
100
48.12
1
Japan
104.15
196.59
371.42
23.53
26.19
33.4
88.93
2
Germany
81.73
158.42
220.52
18.47
21.1
19.83
39.2
3
Korea, South
28.19
89.60
133.14
6.37
11.93
11.97
48.6
4
Taiwan
40.66
77.32
92.79
9.19
10.3
8.34
20.01
5
United States
42.03
67.38
65.50
9.5
8.98
5.89
-2.8
6
Italy
37.65
38.23
40.43
8.51
5.09
3.64
5.75
7
Switzerland
15.65
33.36
32.20
3.54
4.44
2.9
-3.47
8
Finland
16.99
28.07
29.74
3.84
3.74
2.68
5.98
9
Turkey
0.03
0.01
23.81
0.01
0.01
2.14
- -
10
Austria
5.87
2.23
21.77
1.33
0.3
1.96
875.09
Source of data: China Customs
As far as the product Mach For Treating Metal Inc Electric Wire Coil-Win is concerned, Italy is the 6th world supplier country in 2011, and second in Europe, after Germany. Japan, leading exporter country, take 33.4% of the market share Millions of USD January - June Rank
% Share Shar e 2010 20 10
2011 20 11
%Change
Country
2010 20 10
2011 20 11
2012 2012
2012 2012
12 /11
-- World --
384.09
605.40
594.66
100
100
100
-1.77
1
Japan
94.78
217.19
190.91
24.68
35.88
32.1
-12.1
2
Germany
77.13
95.34
83.26
20.08
15.75
14
-12.67
3
Korea, South
39.48
85.78
71.66
10.28
14.17
12.05
-16.46
4
United States
45.74
40.17
46.37
11.91
6.64
7.8
15.43
5
Italy
26.06
22.52
42.02
6.79
3.72
7.07
86.65
6
Taiwan
40.05
62.30
40.12
10.43
10.29
6.75
-35.59
7
Austria
1.35
9.89
19.42
0.35
1.63
3.27
96.4
8
Switzerland
19.57
15.56
17.76
5.09
2.57
2.99
14.14
9
Belgium
2.50
6.75
17.71
0.65
1.12
2.98
162.44
10
Finland
3.46
9.52
17.18
0.9
1.57
2.89
80.56
Source of data: China Customs 23
In the first half of 2012, the product Mach For Treating Metal Inc Electric Wire Coil-Win, Italy has climb up to 5th position, and has an increase +86.65% with 7.07% market share.
2. CHINA’S WIRE AND TUBE MACHINERY EXPORT China Export Total to World by countries Millions of USD January - December Rank
Country -- World --
% Share 2009 20 09
2010 20 10
%Change
2009 20 09
2010 20 10
2011 20 11
2011 20 11
11/ 11 /10
1,194.22
1,012.23
1,055.43
100
100
100
4.27
195.03
163.06
110.90
16.33
16.11
10.51
-31.99
24.05
26.72
64.32
2.01
2.64
6.09
140.72
112.53
44.91
58.02
9.42
4.44
5.5
29.2
1
India
2
Indonesia
3
United States
4
Vietnam
57.71
48.64
55.87
4.83
4.81
5.29
14.85
5
Korea, South
88.21
41.39
51.23
7.39
4.09
4.85
23.79
6
Brazil
24.01
56.37
50.73
2.01
5.57
4.81
-10
7
Russia
31.06
43.59
39.35
2.6
4.31
3.73
-9.71
8
Thailand
20.22
49.65
38.97
1.69
4.91
3.69
-21.52
9
Saudi Arabia
6.13
8.55
36.84
0.51
0.84
3.49
331.07
10
Taiwan
78.99
53.31
35.98
6.61
5.27
3.41
-32.51
16
Italy
48.37
25.95
22.39
4.05
2.56
2.12
-13.72
Source: China Customs
As far as China World Export are concerned, we can state that Italy ranks as the 16th world importer country, recording an decreased import turnover of 22.39 millions of USD, with a market share of 2.12% and an negative change of -13.72%, compared to previous year.
24
China Export Total to World by HS codes Millions of USD January - December HS codes
Description
2009 20 09
2010 20 10
2011 20 11
-- World --
1,194.22
1,012.23
1,055.25
Metal-Rolling 8455
% Share
Mills And Rolls
%Change
2009 2009
2010 20 10
2011 20 11
11/ 11 /10
1,055.43
100
100
100
4.27
834.85
788.79
88.4
82.48
74.7
-5.52
69.71
88.50
141.99
5.84
8.74
13.5
60.44
33.95
42.08
58.56
2.84
4.16
5.55
39.16
27.25
39.99
56.02
2.28
3.95
5.31
40.07
8.06
6.80
10.06
0.68
0.67
0.95
47.98
Mach For Treating Metal Inc Electric 847981
Wire Coil-Win Machines For Working
846330
Metal Wire Draw-Benches For Bars/Tubes/Pro files Wire Or
846310
The L Thread Rolling Machines For Working
846320
Metal
Source: China Customs
In China, the product Metal-Rolling Mills And Rolls (HS code 8455) is the biggest export item, with the biggest market share of 74.7%.
25
China Export Total to Italy by HS codes Millions of USD January - December HS codes
Description Italy Metal-Rolling
8455
Mills And Rolls
2009 20 09
2010 20 10
2011 20 11
% Share Shar e
%Change
2009 20 09
2010 20 10
2011 20 11
11/ 11 /1 0
48.37
25.95
22.39
100
100
100
-13.72
44.23
21.93
19.81
91.4
84.5
88.5
-9.69
2.62
3.69
2.36
5.41
14.23
10.5
-36.18
0.37
0.17
0.19
0.77
0.65
0.84
12.34
0.11
0.03
0.03
0.24
0.1
0.12
0.57
1.03
0.13
0.02
2.14
0.52
0.07
-88.63
Mach For Treating Metal Inc Electric Wire 847981
Coil-Win Machines For Working Metal
846330
Wire Draw-Benches For Bars/Tubes/Profil
846310
es Wire Or The L Thread Rolling Machines For
846320
Working Metal
Source: China Customs
The same as China export to the world, the most important category export to Italy is also Metal-Rolling Mills And Rolls (HS code 8455), with 88.5% of the total market share.
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A PPENDIX Import Procedures & Guides Custom Duties HS code
Description
Duty
VAT
845510 845521 84552210 84552290 845530
Tube mills Hot or combination hot and cold Cold mills Aluminum foil roughing mill Rolls for rolling mills Metal Treating Mach, Inc Electric Wire CoilCoil-Winder DrawDraw-Bench For Bars Tubes Profile Wire F Work Met Thread Rolling Machines For Working Metal Machines For Working Wire
12% 15% 10% 15% 8.4%
17% 17% 17% 17% 17%
T ax R ebate 17% 17% 17% 1 7% 17%
9.5%
17%
15%
10%
17%
17%
15%
17%
17%
10%
17%
17%
847981 846310 846320 846330 846 330
CCC Certification In December 2001, the State General Administration of Quality Supervision, Inspection and Quarantine of the People ' s Republic of China issued the Regulations for Compulsory Product Certification. The Compulsory Product Certification System began to replace the original Quality License System for Commodity Inspection and Safety Certification System for Electrical Equipment. The new system requires manufacturers in 132 product categories to obtain the China Compulsory Certification (CCC) mark before exporting to or selling in the Chinese market. The new system, implemented on May 1, 2002 and fully effective on May 1, 2003, will impact many U.S. exporters, across a wide range of industries. Products not meeting CCC requirements may be held at the border by Chinese Customs and will be subject to other penalties.
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There are a number of details exporters should be aware of when applying for the CCC Mark. The application process can:
Can take 60 to 90 days or longer Requires testing at accredited laboratories in China Generally does not permit self certification or third-party testing result Requires submission of numerous technical documents Requires submission of a product sample to the accredited Chinese testing laboratory Requires a factory inspection by Chinese officials at the applicant's expense Requires follow-up inspections every 12 to 18 months
The CCC Mark is administered by the Chinese government agency Certification and Accreditation Accreditation Administration (CNCA). (CNCA) Following are steps involved in processing CCC mark applications. Determine Whether Your Products Require CCC Marking Get the Implementing Regulations Consider Your Options for Applying Apply Note Other Chinese Licensing Requirements
Appointed products CNCA -01C - 002: Electric Wires and Cables CNCA -01C -005: Plugs and SocketSocket -outlets for Industrial Purpose CNCA -01C01C-008: Enclosures for Accessories for Household and Similar Fixed Electric Installations Installations CNCA -01C -014: Electric Tools CNCA -01C -015: Electric Welding machines CNCA -01C01C-018: Equipment and Components for Cable Distribution System of Sound and Television Signals CNCA -01C -020: Information Technology Equipments CNCA -07C -031: Telecommunication Terminal Equipment
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