Strong downstream demand encountered de-capacity, casting supplier bargaining power increased

28th Global Foundry Sourcing Conference in Qingdao

On October 15, the 28th Global Foundry Sourcing Conference, which organizer by Foundry-Suppliers.Com, Suppliers China Co., Ltd. and co-sponsored by Qingdao Casting Sourcing Co., Ltd., the National Casting Standardization Technical Committee (SAC/TC54), was held at the Grand Regency Hotel in Qingdao, China.

28th Global Foundry Sourcing Conference in Qingdao

Opening ceremony

A number of multinational groups were invited to participate in the event, including Bosch Automotive, Dayco, MEICHEN, Weichai, Posco, PARAGON, MES, John Deere, CLAAS, LEMKEN, EQIG, GRUNDFOS, URV, GIW KSB, Galli and Cassina, Weir ESCO, LESER, Flsmidth, Scafom b.v., Estun, Baosi Energy, Sanei Elevator, IDEX, with the procurement scope covering automotive, agricultural machinery, construction machinery, mining machinery, pump valves, rail transit, metallurgical machinery, robots, carpentry machinery and many other fields. Siemens, Grundfos, JACK and Estun Robotics, four buyers held special procurement briefings on global procurement strategies, supplier development in China, support programmes, requirements for suppliers and supply chain optimisation directions.

SIEMENS Purchasing Briefing

Buyers Purchasing Briefing

JACK Purchasing Briefing

Casting production enterprises from different regions attended the conference, in which has 8 automatic lines, annual output of more than 300,000 tons of Hefei Casting & Forging Factory, East China's well-known casting suppliers - Dongying Chenhui Machinery Co., Ltd., Hubei region's outstanding casting suppliers - Gucheng Zhuoyuan Machinery Co., Ltd. held a product promotion report, introduced the company's equipment, main products, supporting areas, development direction, research and development management strength, etc.

Hefei Casting & Forging Factory Introduction

Gucheng Zhuoyuan Machinery Co., Ltd. Introduction

Purchasers visited samples booth

2021 is a very complex year for the foundry industry. There is the impact of the post-epidemic era of resumption of production, there are orders received soft joy, there is pressure to rise in raw materials, sky-high sea freight costs, as well as enterprises generally face environmental protection, power restrictions, to the pressure of production capacity, where to go in the future?

FSC's investigation of buyers in the Global Casting Buyers Database found that: the cause of the outbreak, overseas foundry re-production rate is low, affecting normal delivery, so that the global casting orders flocked to China, superimposed nearly two years of Southeast Asian orders flow back, the market increased a large number of emergency procurement projects; Strong downstream demand has resulted in increased bargaining power in the procurement activities of casting plants, while procurement pressure from casting buyers has increased.

At this stage is the casting supply and demand market reshuffle period, proactively seize the opportunity of the casting factory will certainly occupy more business opportunities. Overall, China remains the world's best source of castings, and we are acutely aware that the downstream market is not optimistic for the coming year. Due to the global economic downturn, the slow recovery of overseas entities, there is a lack of follow-up demand for components, it is worth casting entrepreneurs to be wary. 

On-site negotiations have always been the highlight of FSC conference. The afternoon negotiation link is based on buyers as the center and suppliers face-to-face negotiations. Thanks to FSC professional, the scene negotiations busy, orderly, supply and demand negotiations between the hot, representatives of the face filled with the joy of harvest.

SIEMENS was talking with supplier

BOSCH team were talking with supplier

John Deere was talking with supplier

JACK team were talking with supplier

ESTUN was talking with supplier

Galli & Cassina was talking with suppliers

Time for negotiation

FSC in order to better serve overseas buyers, in June this year edited the "China's Casting Guide" - Preferred Suppliers bilingual electronic version, the first batch of 893 competitive casting production enterprises. This guide has been widely promoted overseas, to attract global buyers to domestic factories direct procurement, to help them optimize the supply chain, received wide acclaim from buyers, to build a healthy casting supply and demand relationship has played a role in promoting. For overseas buyers who do not have direct sourcing from domestic factories or are unable to effectively manage suppliers, FSC provides comprehensive support to purchase in China through supply chain management services with partners.

China's Casting Guide

In the future, FSC will continue to play the advantages of online and offline platforms for global casting buyers and suppliers, to provide higher quality services, for the development of the foundry industry to make a positive contribution!