Analysis of Development Trends in the Vibration Screening Industry

In recent years, energy conservation, environmental protection, and consumption reduction have become the main directions for sustainable development in the country. China is both a major producer and an energy consuming country. How to efficiently utilize resources has become an important national development strategy. The central development plan has brought significant development opportunities to the vibration screening machinery industry. The central government has clearly stated in the Outline of the Eleventh Five Year Plan for National Economic and Social Development that significant technological equipment with significant impact should be developed, including large-scale metallurgical equipment, large-scale screening and washing equipment, etc. Vibration machinery is mainly used in energy industries such as steel and electricity, as well as transportation and road industries.

Below, we will predict the future market capacity of the vibration machinery industry based on the development of the main industries, in order to have a relatively comprehensive understanding of the future development of the vibration industry. The steel industry has entered the 21st century. With the recovery of the world economy and China's entry into the heavy chemical industry stage, driven by strong demand in domestic and foreign markets, China's steel industry has achieved continuous high-speed growth for five years. By 2006, the annual crude steel production had exceeded 400 million tons, marking a new milestone in the history of world steel development. The rapid development of the steel industry has also provided broad development space for the vibration machinery market. According to general industry experience, producing 1 ton of steel requires approximately 5.28 tons of ore. In 2005, China produced 350 million tons of steel and consumed 1.848 billion tons of ore. The import volume of ore generally accounts for 40-50%, and based on the import volume of 50%, 924 million tons of ore need to be purchased domestically. Screening 100 million tons of ore requires 600 million yuan

In 2005, the company owned 5.544 billion yuan of vibration machinery equipment. Based on a 5-year depreciation period and a 10% accessory consumption ratio, the company consumed 1.663 billion yuan of vibration machinery equipment in 2006. The steel production in 2006 increased by 70 million tons compared to 2005, requiring new equipment and accessories worth 1.22 billion yuan. Therefore, in 2006, the demand for vibration machinery equipment in the steel industry was 2.883 billion yuan. From 2001 to 2006, the average annual growth rate of crude steel production in China was 23%. Due to the sharp decline of fixed assets investment in the steel industry, the growth rate of China's steel production capacity is expected to decline, and the annual average growth rate of China's crude steel output is expected to be 15% from 2007 to 2010. Based on this calculation, the market demand for vibration machinery equipment in the steel industry from 2007 to 2010 is shown in the table below.

Steel production (100 million tons) 4.536 5.216 6 6.9

Vibration machinery equipment demand (100 million yuan) 26.146 35.078 42.35 51.26

In 2005, the national installed capacity of thermal power in the power industry was 391.3 million kilowatts, which is equivalent to 1306 sets of 300000 kilowatt thermal power units. According to conservative estimates, each 300000 kilowatt thermal power unit requires one set of vibration mechanical equipment. According to the calculation of 1.5 million yuan per set of vibration machinery equipment, the power industry had 1.959 billion yuan of vibration machinery equipment in 2005. In 2006, the newly installed capacity of thermal power in China was 927.6 million kilowatts, requiring 309 sets of 300000 kilowatt thermal power units and vibration machinery equipment. The original equipment is depreciated for 5 years, and consumables account for 10% of the equipment value. In 2006, the power industry needed to add approximately 1.051 billion yuan of vibration machinery equipment. With the rapid growth of our country's economy, the consumption of electricity is also constantly expanding. In the context of insufficient hydropower capacity, it can only rely on thermal power generation to meet electricity consumption, thereby driving the development of the thermal power generation industry.

 

 

In 2006, China's thermal power generation reached 2357.3 billion kilowatt hours, accounting for 83% of the total annual power generation, a year-on-year increase of 15.3%; As of July 2007, China's thermal power generation has reached 1523 billion kilowatt hours, accounting for 85% of the total power generation. During the 11th Five Year Plan period, China will usher in a new wave of power grid construction. In 2010, the average annual investment in installed power in China was over 5000-600 billion yuan; At the same time, the annual investment in power grid construction and renovation will also reach 5000-600 billion yuan. The average annual investment in electricity and power grid is between 1 to 1.2 trillion yuan, which is nearly double the investment level in 2005. According to statistics from State Grid Corporation of China, it is estimated that the installed capacity of thermal power in China will reach around 640 million kilowatts in 2010. Based on this, the market demand for vibration machinery equipment in the power industry is expected to be as follows from 2007 to 2010.

Thermal power installed capacity (100 million kilowatts) 5.64 5.894 6.147 6.40

Vibration machinery equipment demand (100 million yuan) 9.216 9.801 10.38 10.97

China's highway construction in the transportation industry is currently in a period of industrial expansion, facing opportunities for sustained prosperity. As of the end of 2006, the total mileage of second level and above high-grade highways in China reached 353300 kilometers, an increase of 10300 kilometers from the end of the previous year. The construction of a 1-kilometer high-grade highway requires approximately 60000 yuan in vibration machinery equipment, and the required accessories are calculated at 10%. In 2006, the transportation industry required approximately 680 million yuan in vibration machinery equipment. According to the 11th Five Year Plan for the Development of Highway and Waterway Transportation formulated by the Ministry of Transport, the total mileage of high-grade highways at or above the second level in China will reach 450000 kilometers by 2010. With the continuous acceleration of industrialization and urbanization in our country, the sustained and rapid growth of the national economy, and the continuous improvement of production technology level, it is expected that the total mileage of highway construction in our country will also increase rapidly, especially the proportion of high-grade highways will continue to increase. Based on this, we predict that the average annual growth rate of high-grade highway mileage in China will reach 7% from 2007 to 2010.