Wind power industry
BNEF: Wind turbine prices have rebounded in 2020
According to BNEF's statistical analysis, the global wind turbine prices are relatively stable. Under the trend of further market integration and surging demand, wind turbine prices have rebounded from their lows in the second half of last year, indicating that the downward pressure on prices in the wind power manufacturing industry has eased. Due to differences in project scale and other aspects between different markets, although the sales and production of turbine manufacturers are gradually spreading globally, the price difference trends in different regions are gradually diverging.
Wind turbine prices experienced a brief drop in the second half of 2019. Currently, the order prices for wind turbines in 2020 have rebounded, meaning that the unit megawatt price of wind turbines has remained virtually unchanged since 2018.
In 2020, the price difference of wind turbines in Western Europe widened to over US$200,000/MW, with the highest price reaching US$830,000/MW, while the lowest price in South America was US$620,000/MW. The recent trend of regional price convergence is no longer apparent.
Under the impact of the epidemic, the profit margin of wind turbines is under pressure. Logistics disruptions and supply chain bottlenecks have increased the costs of transportation and project execution for turbine manufacturers. Before the outbreak of the epidemic, the profits of turbine manufacturers were already very thin. The procurement orders currently being handled by manufacturers were signed during the period of 2017-2018, when pricing pressure was greatest, and US-China trade tariffs have also increased raw material costs.
Under the impact of the epidemic, the completion time of some projects has been delayed, and wind turbine demand is expected to reach a new high in 2021. Turbine manufacturers may not be able to deliver on time: the epidemic spread in the first few months of this year, impacting all aspects of the wind power industry chain, and production efficiency has also been continuously affected. Under the dual pressure of rising demand and tightening supply, the downward pressure on wind turbine prices next year is expected to ease, and there is even the possibility of a price increase.
Global offshore wind power investment surges 319%; 28 projects secured US$35 billion in financing in the first half of 2020
Data from Bloomberg NEF (BNEF) shows that the total financing for offshore wind power in the first half of 2020 increased by 319% year-on-year, exceeding the record-breaking figure for the whole of 2019.
In the first half of 2020, investment in renewable energy capacity, excluding large hydropower stations above 50MW, increased by 5% compared to the same period in 2019. Among them, onshore wind power investment decreased by 21%, and solar energy investment decreased by 12%.
BNEF stated that in the first half of this year, 28 offshore wind farms were invested in, including the largest ever Vattenfall Hollandse Zuid offshore wind farm, located off the coast of the Netherlands, with a capacity of 150,000 kW. In addition, Copenhagen Infrastructure Partners invested in the 600MW Changfang and Xidao wind farms off the coast of Taiwan; and the Fecamp and Saint-Brieuc projects in French waters, with a total installed capacity of 993MW.
BNEF indicated that at least 17 Chinese offshore wind power projects received financing, led by the Guangdong Yue Dian Yangjiang Yangxi Shapa Offshore Wind Power Project (300MW). BNEF's head of analysis stated that the COVID-19 epidemic would affect renewable energy investment in the first half of the year due to delays in some auction projects for onshore wind power and photovoltaic power generation, as well as delays in the financing process, but the overall global data for offshore wind power has proven to be surprisingly resilient.
BNEF's head of wind analysis stated that the cost of offshore wind power has decreased by 67% since 2012. Thanks to China's 'rush to install' and the improved performance of the latest offshore wind turbines, offshore wind power has benefited greatly in 2020.
 

Steel
June Steel PMI shows: The industry's recovery momentum slows down, and supply-demand contradictions emerge
The Steel PMI in June was 49.3%, down 1.6 percentage points from the previous month, indicating that the earlier rapid recovery momentum of the steel industry has slowed. The sub-index shows that steel production increased rapidly, market demand weakened, supply-demand structural contradictions emerged, leading to a renewed increase in steel mill inventories. Raw material prices maintained an upward trend, corporate procurement slowed, and corporate expectations for the future also declined. It is expected that in July, market demand may first decline and then rise, steel mill production will maintain month-on-month growth, and raw material prices may fall. Overall, in June, steel demand declined, but steel mill production continued to rise driven by profits, steel mill inventories accumulated, and steel prices fluctuated downward. Raw material prices continued to rise, putting greater pressure on corporate costs.
Antibacterial properties are an important direction for the development of stainless steel
The public health event caused by the COVID-19 epidemic has changed people's lifestyles, and people have become increasingly concerned about personal health and public hygiene, making various antiviral and antibacterial products very popular. At the same time, in the stainless steel industry, the attention paid to antibacterial stainless steel has also quietly risen. Since the beginning of this year, many steel companies, including Baosteel Desheng and Jiugang, have successively developed different types of antibacterial stainless steel products. Previously, the Institute of Metal Research, Chinese Academy of Sciences, Taiyuan Iron & Steel, and Baosteel Stainless Steel had successfully developed alloy-type ferritic and austenitic antibacterial stainless steel, which has been widely used in the manufacture of kitchenware, washing machine drums, and medical devices. It is foreseeable that with society's increasing emphasis on health and hygiene, antibacterial properties will become an important direction for the development of stainless steel.
China still has a lot of room for development in antibacterial stainless steel. How to solve the problem of copper's corrosion resistance in certain media, and how to precisely control the size and distribution of precipitated phases, all require enterprises to strengthen basic research, overcome core difficulties, and also require enterprises to increase R&D efforts in stable mass industrial production processes to promote the rapid development of antibacterial stainless steel.
 

Composite materials
MIIT issues 'Normative Conditions for the Glass Fiber Industry'
In order to effectively curb the repeated construction and blind expansion of the glass fiber industry, regulate market competition order, promote industrial structural transformation and upgrading, and lead the high-quality development of the industry, in accordance with relevant national laws, regulations, and industrial policies, the Ministry of Industry and Information Technology (MIIT) recently issued the 'Normative Conditions for the Glass Fiber Industry'.
The 'Normative Conditions' regulate the glass fiber industry in terms of construction layout, process technology and equipment, product quality and technological innovation, environmental protection, energy consumption, safety production, occupational health and social responsibility, and supervision and management.
The "Specification Conditions" stipulate that project construction should comply with the requirements of the industrial structure adjustment guidance catalog. The construction and expansion of restricted projects are prohibited. The use of clay crucible glass fiber drawing production processes and equipment should be completely eliminated in accordance with the law. The development of high-strength, high-modulus, alkali-resistant, low-dielectric, high-silica, biodegradable, shaped cross-section, and composite fibers (glass fiber and thermoplastic resin composites) and other high-performance and special glass fibers is encouraged. In addition, new alkali-free glass fiber pool kiln method coarse yarn drawing production lines (single fiber diameter >9 μm) and alkali-free glass fiber pool kiln method fine yarn drawing production lines (single fiber diameter ≤9 μm) should comply with the requirements of the industrial structure adjustment guidance catalog. For glass ball kiln production lines, the use of advanced kiln melting technology and heat preservation and energy-saving technology is encouraged. Clarifying agents used should comply with "Occupational Exposure Limits for Hazardous Factors in the Workplace" (GBZ 2). For glass fiber platinum crucible-free drawing production lines, the use of advanced processes and equipment such as split drawing, large roll packaging, and intelligent centralized control systems for raw material balls, wetting agents, and kiln temperatures is encouraged. For glass fiber pool kiln drawing production lines, the use of advanced processes and equipment such as pure oxygen combustion, electric melting, waste heat utilization, waste fiber recycling, and intelligent production and logistics is encouraged.
The "Specification Conditions" apply to glass fiber raw material ball and glass fiber yarn production enterprises. It is a guiding document that encourages technological progress and standardized development in the industry and does not have pre-approval or mandatory requirements for administrative approval.
2020 Analysis of Supply and Demand Trends in the Aviation Composite Materials Industry
China's aviation materials have undergone a development process of introduction, imitation, improvement, modification, and independent research and development. To date, China has standardized the production of approximately 2,000 grades of aviation metals, organic polymer materials, inorganic non-metallic materials, and composite materials; it has established aviation material research and production bases of a certain scale and possesses the production equipment and testing instruments for various material grades, varieties, and specifications required for the production of aviation products.
China is continuously strengthening its emphasis on composite materials in the aviation field. It is expected that the use of composite materials in China's aircraft will further increase in the future. We assume that the proportion of composite materials used in Chinese aircraft in the next few years will reach the level of the United States in the 1990s, and the manufacturing loss rate of aviation composite materials is 75-80%. Based on this estimation, the compound annual growth rate of the Chinese aviation composite materials market from 2018 to 2023 will reach 9.5%.
2020 Analysis of the Current Situation and Market Size of the Aviation Composite Materials Industry
Currently, the main manufacturer in China's aviation composite materials industry is AVIC High-Tech's AVIC Composite Materials Co., Ltd. In 2010, AVIC Composite Materials Co., Ltd. was jointly established by AVIC and Beijing State-owned Assets Supervision and Administration Commission. In 2015, the company was injected into AVIC High-Tech through asset restructuring. AVIC Composite Materials is a technological pioneer in China's aviation composite materials industry. It is a professional high-tech company integrating the research, development, production, sales, and service of composite materials. Its main customers are aviation industrial mainframe manufacturers and parts production units.
At present, the application ratio of composite materials in various fields is relatively high, promoting the continuous increase in the overall scale of composite materials. The aviation field, as a key area for product application in recent years, has seen a continuous increase in its market size. Data shows that from 2010 to 2018, the market size of China's aviation composite materials showed a year-on-year upward trend. By 2018, the market size of aviation composite materials increased by 10.92% year-on-year compared to 2017.
Based on the current development status, the future aviation composite materials industry will show the following trends: First, the demand for aerospace composite materials will continue to rise, and the demand for carbon fiber composite materials from new aircraft types such as the B-787/A-380/A-350XWB will significantly increase. The increase in the number of future aircraft in China will drive the rise in demand for aerospace composite materials, and the aviation composite materials industry will enter a new development period.
Steady Growth in Demand in the Construction Sector
Back-end applications in real estate account for a large part of the demand for fiberglass. With the acceleration of the real estate construction pace, the growth rate of completed housing area has turned positive for five consecutive months, and the repair period for real estate completion has arrived. The repair of completed projects is expected to continue throughout 2020. The demand for fiberglass in the construction sector will show steady growth, and may even exceed market expectations.
Automotive Lightweighting Penetration Brings Long-Term Incremental Growth
The demand for fiberglass in the transportation sector is mainly in automotive parts, high-speed rail, ships, and highway geogrids. Future incremental demand lies in the penetration of automotive lightweighting. Every 10% reduction in vehicle weight will reduce fuel consumption by 6%. Under the increasingly stringent environmental protection environment, lightweighting will become a new direction for the development of the automotive industry in the future.
Rush Installation of Wind Turbines Continues; Short-Term Demand in the Wind Power Sector is Secure
China's fiberglass industry is in its growth stage, with downstream demand continuously expanding. Wind power generation is one of the major emerging fields. With the trend of large-scale wind turbine blades and the huge potential of offshore wind energy resources, the demand for fiberglass materials in the offshore wind power sector is expected to continue to increase.
 

Logistics
China's Logistics Industry Prosperity Index in June was 54.9%
In June, China's logistics industry prosperity index was 54.9%, up 0.1 percentage points from the previous month; China's warehousing index was 50.7%, up 0.3 percentage points from the previous month. In June, the domestic market overcame the impact of the southern floods, and the upstream and downstream of the supply chain continued the recovery and growth trend since March. The logistics industry prosperity index continued to maintain a steady upward trend.
Phased Port Fee Reduction Policy Extended to the End of the Year
The Ministry of Transport, together with the National Development and Reform Commission, issued the "Notice on Matters Concerning the Extension of the Phased Reduction of Port Fee Standards," extending the phased reduction of some port fees issued in March this year to December 31 this year. The content covers a 20% reduction in the standards for cargo port dues and port facility security fees, which are subject to government pricing.
This move is conducive to promoting the resumption of work and production in the logistics industry and industrial chain, and alleviating the burden on cargo owners. From March to June this year, these two port operating service charges have been reduced by 380 million yuan, and a further 580 million yuan will be reduced in the second half of the year. Port enterprises are expected to cumulatively reduce charges for cargo owners by 960 million yuan this year.
Since the outbreak of the COVID-19 epidemic, the Ministry of Transport has thoroughly implemented the important instructions of General Secretary Xi Jinping on comprehensively promoting epidemic prevention and control and economic and social development, actively guiding large port enterprises and shipping enterprises to proactively reduce and exempt port operation package fees, warehouse usage fees, and container rental fees, etc., which are independently priced charges. This has reduced the burden on small and medium-sized enterprises by about 1000 million yuan, promoting the solidarity and mutual assistance of upstream and downstream enterprises and jointly coping with the impact of the epidemic, playing a positive role in better serving stable foreign trade.
 

Real Estate
A net financing report on Chinese real estate companies released by CRIC Securities shows that according to Wind's statistical caliber, the net financing of Chinese real estate companies in June was -6.69 billion yuan, the first time it has been negative this year. In June, the net financing of real estate company bonds accounted for -1.0% of all company bonds, showing a fluctuating decline. In June 2020, except for short-term financing, the net financing of other types of bonds for real estate companies was negative.
According to the chief analyst of CRIC Securities, this trend is mainly due to the tightening of primary market financing after the rise in the price of funds.
Compared with the decline in domestic bond issuance, the US dollar financing of Chinese real estate companies in June showed a trend of improvement from a low level. In June 2020, the issuance of US dollar bonds by Chinese real estate companies amounted to US$4.63 billion, a year-on-year decrease of 17.6%, and a month-on-month decrease of 54.0%, showing a continuous recovery.
Among the RMB bond financing of Chinese real estate companies in June, state-owned enterprises issued perpetual bonds, with coupon rates mostly ranging from 3% to 4%. Many companies, including Dalian Wanda, Meikailong, Geely, Huayu, Jinhui, Zhonan Construction, Sunshine City, Poly, Vanke, Jianfa, Rongqiao, CITIC Gabao, and Huafa, have achieved long-term financing.
In addition, in June, companies such as R&F Properties, Jinhui, Zhengrong, Jianye, and Huayangan carried out long-term high-coupon financing, issuing US dollar bonds with a maturity of more than three years.
Statistics show that in June, Chinese real estate companies issued approximately RMB 1.3 billion in RMB perpetual bonds and no US dollar perpetual bonds. The proportion of short-term financing and medium-term notes in June was 22.6% and 33.3%, respectively, and the financing scale in the interbank market shrank. CRIC Securities predicts that the total repayment amount of Chinese real estate companies in July will be RMB 123.67 billion. If we do not consider the new issuance, repurchase, and early repayment of bonds in the next year, RMB 123.67 billion will need to be repaid in July; subsequent repayment peaks will occur in March and April 2021, with total repayments of RMB 193.22 billion and RMB 201.43 billion, respectively. If later, relevant policies on RMB or US dollars lead to a tightening of overall social funds, stricter review conditions for bank loans, stricter review of overseas bond issuance by real estate companies, and failure to meet expectations in bond issuance, it may lead to increased financing pressure on real estate companies. At the same time, the current real estate market is experiencing significant fluctuations. If loan interest rates rise later, it will increase housing costs and affect sales speed. There is a risk that companies' original sales targets may not be met. Developers need to be wary of defaults.
National Real Estate Development Investment and Sales Situation from January to June 2020
According to the "National Real Estate Development Investment and Sales Situation from January to June 2020" released by the National Bureau of Statistics, from January to June, national real estate development investment increased by 1.9% year-on-year, while it decreased by 0.3% from January to May. From January to June, the sales area of commercial housing decreased by 8.4% year-on-year, with the decline narrowing by 3.9 percentage points compared to the period from January to May. The sales value of commercial housing decreased by 5.4%, with the decline narrowing by 5.2 percentage points compared to the period from January to May.
National Real Estate Development Investment Increased by 1.9% Year-on-Year
From January to June, national real estate development investment increased by 1.9% year-on-year, while it decreased by 0.3% from January to May. Among them, residential investment increased by 2.6%, with the growth rate increasing by 2.6 percentage points compared to the period from January to May.
From January to June, the area of land purchased by real estate development enterprises decreased by 0.9% year-on-year, with the decline narrowing by 7.2 percentage points compared to the period from January to May; the land transaction price increased by 5.9%, with the growth rate falling by 1.2 percentage points.
From January to June, the funds in place for real estate development enterprises decreased by 1.9% year-on-year, with the decline narrowing by 4.2 percentage points compared to the period from January to May. Among them, domestic loans increased by 3.5%; foreign investment utilization increased by 8.0%; self-raised funds increased by 0.8%; deposits and advance payments decreased by 7.0%; and personal mortgage loans increased by 3.1%.
In June, the real estate development prosperity index increased by 0.50 points compared to May.
Decline in Commercial Housing Sales Continues to Narrow, Monthly Sales Reach New High for the Year
From January to June, the sales area of commercial housing decreased by 8.4% year-on-year, with the decline narrowing by 3.9 percentage points compared to the period from January to May. Among them, the sales area of residential housing decreased by 7.6%, office buildings decreased by 26.5%, and commercial and business housing decreased by 20.7%. The sales value of commercial housing decreased by 5.4%, with the decline narrowing by 5.2 percentage points compared to the period from January to May. Among them, the sales value of residential housing decreased by 2.8%, office buildings decreased by 28.0%, and commercial and business housing decreased by 25.5%.
 

Intelligent Manufacturing
Analysis of the Current Situation and Development Prospects of the Collaborative Robot Market in China in 2020
In 2018, the output of collaborative robots in China accounted for about 2.58% of the total output of industrial robots in the country during the same period. Based on the growth trend of the proportion of collaborative robot output to industrial robot output in China from 2015 to 2018, the Forward Industry Research Institute estimates that the output of collaborative robots in China exceeded 5,000 units in 2019.
According to data from the GaoGong Industry Research Institute (GGII), the output of collaborative robots in China increased by 49.9% year-on-year in 2018; from 2014 to 2018, the compound annual growth rate of collaborative robot sales reached 80.15%. According to GGII's estimates, the sales of collaborative robots in China in 2019 increased by about 40% year-on-year.
Based on an analysis of statistical data from the GaoGong Industry Research Institute (GGII) and IFR, the proportion of collaborative robot sales to industrial robot sales in China has gradually increased in recent years, reaching 4.1% in 2018 and 5.5% in 2019.
Collaborative Robots Will Be the Future of Industrial Robots in China
According to a survey by the Forward Industry Research Institute, the total cost of system integration is about 1.5 times the average price of collaborative robot bodies. Generally, after-sales integrators mainly conduct collaborative robot debugging and training within one year of the warranty period, with a cost of about 5% of the collaborative robot cost; collaborative robot maintenance and upgrades are mainly handled by the collaborative robot body manufacturer, with maintenance costs accounting for 2% of the collaborative robot cost.
Based on calculations of the cost of collaborative robots and the average cost of manufacturing labor in 2014 and 2019 (considering the impact of the cost recovery cycle for end users and product upgrades on the actual service life, assuming a life cycle of 5 years). From a theoretical calculation, a high-performance collaborative robot can recover its cost in just one year, meaning that the remaining four years can create value for the enterprise free of charge. This shows that collaborative robots have great market value. Once core technologies are broken through, it can be said with certainty that collaborative robots will be the future of industrial robots.
Opportunities and Challenges Facing Intelligent Manufacturing in China
During the COVID-19 epidemic in 2020, many intelligent manufacturing enterprises demonstrated their "intelligent manufacturing" capabilities. Faced with restricted resident travel, hindered enterprise resumption of work, and shortages of medical personnel, some intelligent manufacturing enterprises, relying on their technological accumulation and manufacturing advantages, launched delivery drones, automatic temperature measurement robots, and intelligent medical service robots to support the operation of life during the epidemic.
China's manufacturing industry has gone through stages of mechanization, automation, and digitalization, and has established a complete manufacturing system and manufacturing infrastructure, holding an important position in the global industrial chain. This gives China the possibility and fundamental strength to achieve intelligent manufacturing and promote the transformation of the global industrial chain. In summary, intelligent manufacturing can promote enterprise transformation and upgrading in six aspects: intelligent design, intelligent products, intelligent equipment, intelligent production, intelligent management, and intelligent services.
Currently, China's intelligent manufacturing still faces certain challenges. Powerful intelligent manufacturing is the product of the combination of advanced manufacturing levels and the application of intelligent technologies. Currently, we still have a certain gap with developed countries in both aspects.
While intelligent manufacturing is widely applied in China, the country still lacks mastery of many core and key technologies. The intelligent manufacturing industry is capital-intensive and technology-intensive; to compete with advanced nations, sufficient capital and talent are essential. Due to the impact of the pandemic, global authorities predict a slowdown in the economic growth of developed countries, resulting in a potential shrinkage of traditional export markets for Chinese manufacturing. Furthermore, high-end talent in global intelligent manufacturing is concentrated in developed countries, while China's supply of relevant talent is insufficient to meet the needs of its domestic intelligent manufacturing industry, impacting its long-term development. To catch up with world-leading standards, China's intelligent manufacturing industry needs to address many shortcomings. Crucially, it must fully leverage the enormous potential of the domestic market, cultivate a favorable business environment, and attract global capital and talent in the intelligent manufacturing industry.
Competition in the intelligent manufacturing industry ultimately depends on competition for high-quality capital and talent. We must adopt a more proactive and open approach, engaging in global competition for these resources, seizing opportunities, meeting challenges, and achieving leapfrog development in the intelligent manufacturing industry to provide a solid foundation for building a strong manufacturing nation.