China Previews Additional 2005 Bearing Demand Data

The People's Republic of China has issued another round of partial estimates covering domestic bearing production and demand in 2005. In October, rudimentary estimates were issued, divided by application China estimates 2005 bearing demand The latest additional data covers Chinese domestic demand for automotive-size and smaller ball bearings. In that range, demand should reach 820 million bearings for 2005, of which 150 million will be so-called electric motor quality (EMQ) ball bearings. Domestic manufacturers are poised to export more than two thirds of their total production of automotive-size and smaller ball bearings in 2005. The country's total production capacity for these bearings -- by what most observers regard as wildly understated official estimates -- should reach 1.7 billion in 2005. The vast majority of bearings sold for export are various styles of unground, non-precision and semi-precision ball bearings. In 2005 and through mid-2006, China will continue to transition its tariff schemes to meet its obligations as a new World Trade Organization member. Along with mounting international pressure to let the Yuan float, the Chinese government's actions should help open the door for foreign manufactured goods, particularly high-precision, high-value items such as bearings.