1. Introduction of industrial chain

Spring is a kind of mechanical part that works by elasticity, generally made of spring steel, which is used to control the movement of parts, mitigate impact or vibration, store energy, measure the magnitude of force, etc., and is widely used in machines and instruments. The upstream of the industrial chain of spring manufacturing mainly involves steel and wire industry; The downstream application fields of spring products involve automobile, construction machinery, electric power and household appliances, and the application range is very wide.

2. Upstream supply: the supply of spring steel is stable, and high-grade spring steel depends on imports.

Spring steel is one of the main raw materials for spring manufacturing. Spring steel has outstanding mechanical properties and is used to make various spiral springs, torsion springs, leaf springs and other springs.

On the supply side, the data shows that during 2015-2019, the output of carbon spring steel crude steel and steel products of key special steel enterprises in China fluctuated around 900,000 tons. In 2019, the crude steel output of carbon spring steel in China's key special steel enterprises was 976,400 tons, a year-on-year increase of 4.91%; The output of carbon spring steel was 903,100 tons, down 3.1% year-on-year. In the first quarter of 2020, the crude steel output of carbon spring steel in key special steel enterprises was 282,100 tons, and the steel output of carbon spring steel was 263,800 tons.

On the demand side, with the development of China's automobile, railway and other equipment manufacturing industries, the production demand of spring products continues to grow. The data shows that in 2015, the demand for spring steel in China was about 3.3 million tons, and it will reach 3.7 million tons in 2020.

However, because there is a big gap between China spring steel and foreign countries in purity, fatigue resistance, surface quality and quality stability, it cannot meet the use requirements of high-grade passenger cars, railways and heavy-duty trucks. Therefore, at present, there is a surplus of low-end spring steel products in China, while high-grade and deep-processed spring steel has a large import substitution space.

3. Downstream demand: the demand for automobile springs is large, and the demand prospect in urban rail field is good.

Automobile manufacturing is the main application field of spring products, and there is a rigid demand for spring parts in automobile manufacturing. The data shows that from 2012 to 2019, China's automobile output maintained an upward trend as a whole. In 2019, China's automobile production was 25.721 million, down 7.51% year-on-year. In May, 2020, the situation of fighting the epidemic in China continued to improve. From January to May, 2020, China's automobile production was 7.787 million.

Taking automobile suspension springs as an example, the demand of suspension springs for each commercial vehicle and passenger vehicle is about 300KG and 15KG respectively, which is the main part of suspension spring automobile manufacturing. Based on this calculation, the demand for suspension springs in the automobile industry will reach 1.6 million tons in 2019.

In addition, the fields of railway and urban rail transit are also the main application markets of springs. Taking urban rail transit as an example, the data shows that the operating mileage of urban rail transit in China is increasing year by year from 2010 to 2019. In 2019, according to the relevant data released by China Urban Rail Transit Association, 40 cities in China have opened urban rail transit, with a total mileage of 6,730.27 kilometers.

With the growth of national investment in the "urban rail transit" industry in the seven major industrial fields of "new infrastructure", in the future, with the steady improvement of China's urbanization level, the urban rail transit industry will also usher in good development opportunities and will continue to stimulate the demand vitality of spring products.

For more data, please refer to Foresight Industry Research Institute's Forecast and Analysis Report on Production and Marketing Demand and Investment of China Spring Manufacturing Industry, and at the same time Foresight Industry Research Institute provides industrial big data, industrial planning, industrial declaration, industrial park planning, industrial investment attraction and other solutions.

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