The production of bearing steel by major special steel enterprises in China from January to June 2018 was 1.9666 million tons, an increase of 17.13% compared to the same period last year. Bearings are a crucial component in contemporary mechanical equipment, whose main function is to support rotating shafts or other moving bodies, guide rotation or movement, and bear the load transmitted by the shaft or its components. The following is an analysis of the layout of the bearing industry.

Analysis of the layout of the bearing industry: Due to the vigorous development of mechanical manufacturing industry in China in recent years, the downstream industries of the bearing industry have developed rapidly, and the demand for bearing products continues to increase, resulting in a continuous increase in sales revenue and total profit of the bearing industry. With the development of industrial machinery and automobiles in China, the demand for supporting bearings has further increased. However, with the slowdown in the growth rate of major downstream demand markets, the scale growth rate of the bearing industry will also slow down. According to the analysis and prediction of the bearing industry, the market size of China\'s bearing industry is expected to reach 306.3 billion yuan by 2023.

Bearings belong to mechanical basic components, and the bearing industry is a technology intensive, capital intensive, and labor-intensive industry that is compatible with each other. Due to the low entry threshold and lack of exit mechanism, a large number of small enterprises have led to low concentration in the Chinese bearing industry and directly resulted in fierce competition in the Chinese bearing market. Now analyze the layout of the bearing industry from two major correlations.

① The correlation and impact between upstream industry and bearing industry

The main raw material for the bearing industry is special steel, and the supply and price fluctuations of upstream raw materials have an impact on the bearing industry. Analysis of the layout of the bearing industry shows that, on the one hand, China\'s production of special steel has maintained high-speed growth for many years, ensuring the supply of special steel in the bearing industry and fully meeting the quality requirements of raw materials for bearing production. On the other hand, in recent years, the sharp fluctuations in the prices of major raw materials such as special steel have brought certain working capital pressure and inventory depreciation reserve risk management pressure to bearing production enterprises. Due to the high proportion of special steel in production costs, the sales prices of various products have a higher correlation with the prices of special steel, and their price trends are basically the same.

② The correlation and impact between downstream industries and the bearing industry

The downstream industries of the bearing industry are mainly construction machinery and heavy-duty vehicles. Analysis of the layout of the bearing industry: \"Stable growth, price control, structural adjustment, benefiting people\'s livelihood, reform, and promoting harmony\" is the theme of China\'s economic development this year. The country regulates the continuity and stability of economic development through active fiscal policies and prudent monetary policies. For the development of company business, the investment policy with pressure will bring structural opportunities to bearings and gearboxes.

Analysis of the layout of the bearing industry shows that bearings, as important basic components, play a crucial role in the manufacturing of the mechanical industry. However, compared with the world\'s leading bearing industry countries, there is still a considerable gap in China\'s bearing industry, mainly manifested in the generally low proportion of high-precision, high-tech, high added value, and long-life products, and the need for further improvement in product stability and innovation. In recent years, more and more well-known overseas bearing companies such as SKF from Sweden, FAG from Germany, NSK from Japan, and TIMKEN from the United States have chosen to invest and establish factories in China, intensifying competition in the domestic bearing market.