The global market size of the cutting tool industry, often referred to as the “teeth of industry,” is approaching $40 billion. In recent years, with the upgrading of my country’s manufacturing industry, the application of carbide indexable cutting tools has become increasingly widespread, leading to a rapid increase in demand for inserts.
Recently, the Secretariat of the Tool Branch of the China Machine Tool & Tool Builders’ Association (CMTBA) compiled and analyzed customs data on insert imports and exports in recent years. Based on customs data, the association calculated and analyzed several aspects, including total insert import and export value, coated insert import and export value, uncoated insert import and export value, unit price of insert import and export value, and origin of coated insert import and export value, as well as origin of uncoated insert import and export value.
The CMTBA analysis suggests that while my country’s total insert imports currently far exceed exports, the gap is gradually narrowing. The total insert import and export value decreased from 3.4 times in 2019 to 2.1 times in 2022, a decrease of 38%.
According to reports, insert imports mainly come from eight countries: Japan, Germany, Sweden, Israel, the United States, South Korea, India, and Thailand. In terms of coated insert imports, Japan surpassed Germany and Sweden in 2022 to become the largest importer. Japan has consistently ranked first in imports of uncoated cutting tools, accounting for approximately 70%.
my country’s CNC cutting tools are inexpensive and of high quality, making a significant contribution to improving efficiency in the manufacturing industry.
Association experts stated that my country’s CNC cutting tool industry, especially leading enterprises, needs to continue overcoming difficulties and accelerate the localization of high-end cutting tools. On the other hand, the industry should improve the quality of exported cutting tools and accelerate export expansion. It is believed that with localization, cutting tool exports will soon usher in a new era.
The localization process of carbide cutting tools is accelerating. In 2019, the market share of domestic brands of coated cutting tools in my country was 61.5%, and in 2022 it reached 81%, an increase of 19.5 percentage points compared to 2019, indicating significant progress in cutting tool localization. Key user industries are focusing on the self-sufficiency and control of the industrial chain, providing a rare opportunity for the localization of high-end cutting tools.
China’s core competitiveness in the global carbide cutting tool industry is rapidly improving. From 2019 to 2022, the export value of coated cutting tools increased by 74%, and the export volume increased by 50%. While replacing imports, this provides a guarantee for expanding exports. Upgrading China’s cutting tool exports is imperative. As China transitions from a major tungsten resource producer to a leading tungsten industry powerhouse, the market for cemented carbide cutting tools will continue to grow stronger.
Related data shows that my country’s cutting tools are currently dominated by low-to-mid-range products and widely used general-purpose products. In the high-end sector, imported cutting tools still hold a significant share, but the upgrading of my country’s manufacturing industry will further increase the demand for high-end cutting tools.
Currently, major cutting tool manufacturers are increasing their R&D efforts in mid-to-high-end cutting tools and related technologies, and are actively developing supporting tool holders and cutting discs. The application technology of cutting tools is receiving significant attention, and substantial progress is expected in overcoming the challenges of producing mid-to-high-end products. Experts indicate that my country’s policies, such as strengthening control over tungsten resources, are also forcing the upgrading of cutting tool products, making the move towards mid-to-high-end cemented carbide cutting tools an inevitable path for industrial development.
During a recent investor survey, a relevant official stated that import substitution for high-end cutting tools in my country has accelerated in recent years, especially in key industries such as aerospace, where the growth rate has increased significantly. Currently, there is still considerable room for domestic substitution in the high-end sector of the industry.
Our company recently signed a cooperation agreement with a Russian client. The contract covers products such as carbide cutting inserts, tool bodies, steel turning supports and tools, drill bodies, and solid carbide end mills. FOTMA ALLOY has been continuously expanding its overseas presence in recent years, with its international sales revenue steadily increasing. In the past year, the company has developed nearly 60 new overseas clients, with rapid growth in sales in the European market.
Post time: Mar-12-2026