Head tool manufacturers are fully booked, industry insiders estimate that the capacity utilization and net profit rate in Q2 of this year will remain high.

Reporters learned from multiple industry insiders that the supply and demand for CNC tool blades are currently strong. In the first quarter of this year, the capacity utilization rate of leading manufacturers of CNC tool blades has significantly increased compared to the same period last year, with different product categories having an order cycle of about 2-3 months. Driven by rising prices and quantities, the net profit margin of products has increased year-on-year. A representative from a leading tool manufacturer stated that the price increase of products in the previous period has had a greater impact on the net profit margin than the contribution from increased sales volume. With the support of previous raw material and finished product inventory reserves, it is expected that the capacity utilization rate and net profit margin will remain high in the second quarter of this year.