Korean Machine Tool Market Trend in November

Korean Machine Tool Market Status (November, 2015)

 
☐ (Orders) ‘15. November  Machine Tool Order ￦1,976B(MoM +0.4%, YoY -13.5%)
o (Domestic Orders) ￦1,324B(MoM -1.7%, YoY -7.7%),
   (Export Orders) ￦653B(MoM +5.1%, YoY -19.1%)

o (By product)
NC Metal Cutting(￦1,647B, MoM +7.5%)
Metal Cutting (￦109B, MoM +1.6%), 
Metal Forming(￦ 220B, MoM -32.9%)

o (By industry)
Automobile(￦412B, MoM -22.7%),
Steel‧Nonferrous Metal(￦89B, MoM +5.2%), 
Machinery(￦198B, MoM -3.2%),
Electric‧Electronics‧IT(￦284B, MoM +74.8%)

*Metal products(￦141B, MoM +4.2%), Shipbuilding‧Aviation(￦56B, MoM -33.4%),
 Precision Machinery(￦23B, MoM +52.0%)

o Machine Tool Orders(January ~ November) ￦29,833B(YoY -13.5%)
 (Domestic Orders) ￦ 15,611 B, YoY -7.7%,
 (Export Orders) ￦14,221B, YoY -19.1%

☐ (Production) ‘15, November Machine Tool Production ￦2,622B(MoM -1.4%, YoY +2.2%),
   Shipment ￦3,152B(MoM +7.0%, YoY -2.7%) 

o Machine Tool Production(January~November, 2015) ￦31,294B(YoY +2.2%)
o Machine Tool Shipment(January~November, 2015) ￦30,727B(YoY -2.7%)

☐ (Exports, November, '15) $151M(MoM -21.2%, YoY -17.9%)
o Sub total of Exports (Jan.~November, '15) $2,127M(YoY +5.8%)

- By Region
Asia($979M, YoY+8.1%), North America($365M, YoY -4.5%), Europe($457M, YoY -17.6%), Central and South America($270M, +165.3%)

*ratio of Exports(‘15.Jan.~November) by region : Asia(46.0%), Europe(21.5%), North America(17.2%)Central and South America(12.7%)

☐ (Imports, November, '15)$114M(MoM +7.8%, YoY -3.5%)

o Sub total of Imports (Jan.~ November, '15) $1,292M(YoY -4.5%)

- Asia($862M, YoY +2.1%), North America($51M, YoY -17.5%),
 Europe($366M, YoY -17.1%)

*ratio of Imports(‘15.Jan.~November) by region : Asia(66.7%), Europe(28.3%),
 North America(3.9%)

*￦ : Korea Won, $ : US dollar, B= Billion,  M=Million

Korea Machine Tool Market Trend in August

Korean Machine Tool Market Status (August, 2015)

☐ (Orders) ‘15. August Machine Tool Order ￦1,893B(MoM -14.8%, YoY -32.9%)
o (Domestic Orders) ￦1,238B(MoM -3.5%, YoY -21.1%),
   (Export Orders) ￦655B(MoM -30.4%, YoY -47.8%)

o (By product)
NC Metal Cutting(￦1,627B, MoM -16.7%)
Metal Cutting (￦74B, MoM +19.7%), 
Metal Forming(￦ 191B, MoM -8.2%)

o (By industry)
Automobile(￦528B, MoM +3.3%),
Steel‧Nonferrous Metal(￦98B, MoM +32.0%), 
Machinery(￦240B, MoM +15.5%),
Electric‧Electronics‧IT(￦129B, MoM -7.9%)

*Metal products(￦81B, MoM -20.2%), Shipbuilding‧Aviation(￦55B, MoM -23.7%),
 Precision Machinery(￦11B, MoM -63.4%)

o Machine Tool Orders(January ~ August) ￦23,800B(YoY -4.4%)
 (Domestic Orders) ￦ 11,527 B, YoY -7.4%,
 (Export Orders) ￦12,273B, YoY -1.4%


☐ (Production) ‘15, August Machine Tool Production
     ￦2,483B(MoM -13.9%, YoY -7.7%),
    Shipment ￦2,819B(MoM +8.8%, YoY +3.6%)
o Machine Tool Production(January~August, 2015) ￦23,621B(YoY +4.6%)


☐ (Exports, August, '15) $205M(MoM -18.8%, YoY +5.5%)
o Sub total of Exports (Jan.~August, '15) $1,631M(YoY +14.4%)

- By Region
Asia($735M, YoY+14.9%), North America($269M, YoY -1.1%), Europe($338M, YoY -15.0%), Central and South America($247M, +245.4%)

*ratio of Exports(‘15.Jan.~August) by region : Asia(45.1%), Europe(20.7%), North America(16.5%)Central and South America(15.1%)

☐ (Imports, August, '15)$105M(MoM -23.2%, YoY -5.7%)
o Sub total of Imports (Jan.~ August, '15) $969M(YoY -2.5%)

- Asia($637M, YoY +2.8%), North America($42M, YoY -8.4%),
 Europe($285M, YoY -12.8%)

*ratio of Imports(‘15.Jan.~August) by region : Asia(65.7%), Europe(29.4%),
 North America(4.3%)
*￦ : Korea Won, $ : US dollar, B= Billion,  M=Million

[KMTI ⑯] Korea's Machine Tool Production Forecast

Korea's Machine Tool Production Seen to Grow 9.8% in 2014

Korea's machine tool production in 2014 is projected to grow 9.8% year-on-year to 6.38 trillion won. The growth projection is based on the expected recovery of domestic facility investment, the nation's export expansion to key overseas machine tool markets, including the United States and Europe, base effects from poor business performance results in 2013, and other factors.

According to the Korea Institute for Industrial Economics and Trade (KIET), domestic facility investment in 2014 will grow 5.5% year-on-year, a comparatively active recovery trend centering on IT manufacturing businesses thanks to export recovery and the alleviation of uncertainties.

Demand recovery in major overseas machine tool markets and employment of active domestic and overseas marketing by domestic enterprises also are likely to contribute to the growth of domestic machine tool production. Due to a low-growth trend of the domestic economy, continuation of weaker Japanese yen currency and growth slowdowns in huge markets like China and India, however, production in 2014 may, more or less, not be able to reach the record high results of 2012.

The 2014 demand related to automobiles, the largest demand business type, may improve compared with 2013 owing to the market debut of new domestic cars, but is not expected to reach demand levels similar to those experienced in early 2012.

However, the outlook for the global automobile market released on December 13, 2013, by the Korea Automobile Manufacturers Association (KAMA) indicated that internal and external demand for domestic machine tools in 2014 is expected to improve thanks to a 4.8% growth (90,3400,000 units) in global automobile sales, with entry of the European market into a recovery phase and recovery of emerging markets. Meanwhile, if domestic machine tool production is converted into U.S. dollar equivalency, production will exceed US$6 billion for the first time in history, according to the foreign exchange rate projection (1,058 won/U.S. dollar) for 2014 by KIET. 

[Matchmaking4U]Exhibitor(9) BONAWILL CORPORATION, TAIWAN

About Bonawill Corporation

Bonawill Corporation was established on Mar. 14, 1988, and specialized in handling many kinds of machinery parts to the machine tool field and industrial field in Korea, Japan, Malaysia, Singapore, Thailand, Sweden and Taiwan like as :Spindle (Belt, Direct Drive and built-in), Pull stud type clamping, ATC/Magazine (Disk type, Chain type for Vertical and Horizontal M/C), Ballscrew, Support unit of Ballscrew, Precision ground Lead Screw and Nut, Chip conveyor (steel belt chip conveyor, scraper type chip conveyor), Telescopic steel cover, Work Light (Halogen, Fluorescent Tubular Light, LED), Oil Cooler, Power Chuck, collet, Oil Skimmer…etc. For many years, Bonawill has never strayed from its adherence to its core corporate values of “Trust, Professionalism, and Sustainability”. Externally, Bonawill proactively cooperate with clients to ensure products that fulfill clients' requirements and expectations and thus generate successful relationships and a positive future outlook. In the future Bonawill will continue to share good quality products with our clients.

Bonawill Corporation in SIMTOS 2014

Bonawill will participate in SIMTOS2014 because of keeping growing Korea market. This time Bonawill focus on machine tool field and industrial machinery field. At SIMTOS2014, Bonawill will exhibit with Royal Precision Tool Corporation together. Not only high accuracy direct-drive spindle and build-in spindle will be exhibited, Bonawill would like to introduce other parts to Korean group. Bonawill is able to provide excellent competitive products and services, and want to support Korean group to improve both companies win-win opportunities

[KMTI] ‘12 Korean & Global Machine Tool Industry

[KMTI] 2012 Scoreboard : Production

Record-High Export & Trade Surplus

Despite the overall recession at home and abroad, Korea registered record highs in machine tool exports and trade balance, reflecting the success of the nation’s global outreach initiatives.

Production Increases Thin 1.0% to 6.4 Trillion Won

The Korean production of machine tools in 2012 grew a meager 1.0% year-on-year to about 6.42 trillion won due to the combination of domestic and overseas economic slowdowns, following the European financial crisis and decline in facility investment related to new vehicles.

Regarding domestic demand in 2012, as economic instability factors impacted domestic manufacturing industries and the number of new vehicle model introductions declined significantly compared with the preceding year, facility investment by automotive manufacturers and business sentiment weakened remarkably. In contrast, exports grew in 2012, owing to good performance of manufacturing businesses in the United States and increases in exports to newly emerging countries like India, Turkey and Southeast Asia. The export growth contributed to maintaining the 201l level of domestic machine tool production.

[KMTI] 2013 Outlook : Mild but Steady Recovery Looming

Production.. 5.1% Rise Seen to 6.75 Trillion Won

Owing to domestic facility investment expansion and increased exports to major markets, including the United States and China, as well as emerging markets, production in 2013 is projected at 6.75 trillion won, up 5.1% from 2012.

Domestic facility investment expansion, expected to reach 5.3% in 2013, economic stimulus effects following the launch of new governments in China, USA, etc. and growth in emerging markets, including India, Turkey and Brazil, are factors projected to contribute to the growth of Korea's machine tool exports and production.

Facility investment, although external uncertainties are limiting improvement in investment sentiment, is expected to increase 5.3% from 0% growth in 2012, implying a 'low in the 1st half and high in the 2nd half' growth phenomenon at 2.2% and 10.8%, respectively.

By business type, while facility investment continues to expand in non-IT sectors like automobiles and machinery, mobile equipment-related facility investment may increase again, so machine tool demand is expected to pick up in 2013.

In contrast, since a low 3% level of domestic economic growth is projected for 2013, coupled with weaker domestic demand for development of new vehicles, the machine tool industry is expected to register only single-digit growth.

According to a questionnaire survey regarding the 2013 business outlook conducted by KOMMA in December last year on a total 31 member companies, most of the respondents established sales growth targets at about 9.1% (-2.8% in 1st half and 24.8% in 2nd half). Among them, manufacturers of complete machines set sales growth goals at about 8.8% (-0.6% in 1st half and 24.3% in 2nd half).

Exports.. Seen to top US$2.75 Billion With 8.3% Rise

Machine tool exports in 2013 are forecasted to realize US$2.75 billion, up 8.3% year-on-year, owing to continuous growth of exports to the nation's largest export markets, China and the USA, and through reinforcement of marketing strategies for emerging markets, including BRICs and Southeast Asia.

However, fierce competition with major exporters, such as Japan, Germany and Taiwan, and rapid growth of Chinese companies combined with weakening of export competitiveness caused by unfavorable foreign exchange rates and low global economic growth are likely to serve as factors that limit export expansion.

Imports.. Near Double-Digit Increase Expected

Machine tool imports in 2013 are expected to increase 9.7% year-on-year to US$1.69 billion due to the base effect of import results in 2012, facility investment growth, foreign exchange rate appreciation and other factors.

Affected by low domestic economic growth and limited demand for development of new vehicles, significant import growth is unlikely. However, imports of Japanese machine tools may increase due to mitigation of the strong yen currency.

Under such conditions, overseas companies in Germany, Switzerland and Italy are expected to utilize the Korea-EU FTA more actively with a focus on comparatively high-end products and process-intensive-type models, including complex and automation-related machine tools.

Consumption.. Projected to Rise 7.2% to 5.6 Trillion Won

As production, exports and imports are all projected to post single-digit growth, machine tool consumption in 2013 is expected to increase 7.2% year-on-year to about 5.6 trillion won. Although consumption will grow for the first time in two years, the rate is likely to be in the single digits.