China Machine Tool Industry Revenue Reaches RMB 720.9bn in Jan–Aug 2026

On October 10, the China Machine Tool & Tool Builders' Association (CMTBA) released its January–August 2026 economic brief. The sector continued its recovery, with revenue and order growth both running near double-digit territory - but the picture is sharply split between sub-sectors, and the trade balance is showing a subtle shift.

1. Revenue and output: overall growth, led by metal-cutting machines

In the first eight months of 2026, the machine tool and tool industry posted total revenue of RMB 720.9 billion, up 7.5% year on year. By sub-sector:

• Metal-cutting machine tools: revenue up 18.6% YoY - the single biggest growth driver.
• Metal-forming machine tools: revenue down 4.2% YoY, still in an adjustment phase.

Output from enterprises above designated size reached 584,000 metal-cutting machines (+8.8% YoY) and 125,000 metal-forming machines (+7.8% YoY).

2. Orders: both new orders and backlog running hot

More telling than revenue is the order book:

• New orders for metalworking machine tools rose 15.7% YoY.
• Orders in hand (backlog) rose 19.3% YoY.

Backlog growth outpacing new-order growth suggests that production scheduling lead times are still lengthening. Visibility into the second half of 2026 and into early 2027 is therefore relatively solid - the upswing is supported by real orders rather than a short-term bounce.

3. Trade: total value up, but machine-tool exports soften slightly

Total imports and exports of machine tool products reached US$23.15 billion (+5.7% YoY): imports US$7.27 billion (+7.3%), exports US$15.88 billion (+5.0%), widening the trade surplus.

Two signals stand out in the breakdown by machine type:

• Metal-cutting machines: imports US$3.18bn (−0.3% YoY); exports US$3.95bn (−2.3% YoY).
• Metal-forming machines: imports US$0.35bn (−14.7% YoY); exports US$2.15bn (−1.7% YoY).

Overall trade is still growing, but host-machine exports have eased slightly - consistent with cautious capital spending among overseas manufacturers. The sharp drop in forming-machine imports, meanwhile, reflects adjustments in China's domestic fixed-asset investment mix.

4. What this means for abrasives and diamond tools

Machine tools are the "parent machines" that consume diamond saw blades, grinding blocks and drill bits as consumables. Metal-cutting output up 8.8%, new orders up 15.7% and backlog up 19.3% together point to a larger installed base and higher machine utilization - which in turn expands the underlying demand for abrasives, bonded tools and superhard consumables. For makers of diamond cutting, grinding and drilling tools used in construction, this recovery on the machine-tool side is an early signal that downstream construction and manufacturing capital spending is also turning up.

Closing

The January–August data sends one clear message: China's machine tool industry is in a phase of "growing on aggregate, diverging in structure." Metal-cutting and metal-forming are moving in opposite directions, host-machine exports are under short-term pressure, but order resilience is holding up. Rather than chasing headline growth, companies should position themselves against their specific downstream segments.

About huicetools: a professional manufacturer of diamond tools, founded in 2006. With years of hands-on experience, we sell factory-direct at highly competitive prices. Our product line covers diamond saw blades, diamond grinding blocks, diamond drill bits and a full range of diamond tools for construction applications.

Disclaimer: Data in this article is drawn from the publicly released January–August 2026 economic brief of the China Machine Tool & Tool Builders' Association (CMTBA) and is provided for industry reference only. Figures follow the association's official caliber; we make no representation as to their completeness, accuracy or subsequent trend, and this article does not constitute investment or business advice. For republication or citation, please contact huicetools and credit the original source.