Casting is a metal molding object obtained by a variety of casting methods, that is, the smelted liquid metal, with pouring, injection, inhalation or other casting methods into the pre-prepared casting, after cooling by grinding and other subsequent processing means, obtained with a certain shape, size and performance of the object. From the industrial chain, the upstream raw materials of large castings are mainly pig iron, scrap steel and coke, and the downstream involves many industries such as power, ocean, general machinery and rail transportation.
China's casting production scale is huge, more types of downstream demand. In terms of the proportion of downstream demand, the main products are automobiles, cast pipes and fittings, internal combustion engines, agricultural machinery and construction machinery. Data show that the automotive industry accounted for the highest proportion of the downstream industry demand for casting in China in 2020, accounting for 28.9% of the total demand, down 0.2 percentage points compared with 2019. The second is casting pipe and casting, accounting for 16.4%.
The overall scale of automobile industry downstream of casting industry is huge, among which new energy vehicles are its main development trend. According to data from The China Association of Automobile Manufacturers, China's new energy vehicles developed rapidly from 2011 to 2018, with explosive sales growth, with sales increasing by more than 150 times in the past seven years. In 2019, affected by the sharp decline in subsidies, sales declined. In 2020, the epidemic rose, reaching a new high of 1.367 million vehicles. With the rapid growth of demand in downstream automotive industries, the casting industry has a broad prospect and the market size is expected to be further improved.