Domestic sales of excavators in China remained robust in September, jumping by 27.7% on year and 15.7% on month to 13,408 units, according to newly-released industry data. The country’s generally buoyant mining sector propelled the sales, Mysteel learns.
According to the latest survey of the China Construction Machinery Association (CCMA) released on October 11, the September result took total sales over this year’s first nine months to 156,242 units, higher by a large 53.3% on year. The CCMA’s survey canvasses the performance of China’s twenty-five leading excavator makers, Mysteel notes.
“Demand during third quarter remained healthy, as evident by the considerable number of new orders we received during the period,” an official from Sany Heavy Industry explained. “The increase was mainly due to stable demand from the construction and mining industries, and some consumers bought new excavators so they could retire their old ones,” he told Mysteel.
Several Chinese mineral markets are enjoying a boom right now but the steady uptrend in the coal market beginning this year could likely drive demand for excavators higher, Mysteel notes. The daily average price of thermal coal in Datong in North China’s Shanxi province over January-September moved up by Yuan 36.9/tonne ($5.7/t) or 9.8% on year to Yuan 413.5/t on average.
The Sany official also acknowledged the growth in exports which yellow goods makers are enjoying. “Our exports to overseas markets including Southeast Asia, Latin America, Africa and Europe have all witnessed a significant increase recently,” he explained.
China’s excavator exports during the first nine months of this year climbed by a sharp 109.7% on year to a total of 13,852 units, according to CCMA’s data.
“For the rest of the year, we see demand for excavators continuing to expand, thanks to China’s determination to make steady investments in infrastructure,” he added.
The provincial government of North China’s Hebei province recently decided to accelerate the construction of some major projects during late September until the end of December – the best months to undertake outside construction projects ahead of winter’s freeze. With the ramp up in spending, for the whole of 2018 the Hebei government intends to invest no less than Yuan 800 billion ($115.9 billion) in infrastructure, according to an October 3 release on China’s State Council website.
Within the total of sales of heavy equipment over January-September, some 142,281 units were sold domestically excluding Hong Kong, Macao, and Taiwan, up 49.3% from a year ago, CCMA data show. Within the total, sales of medium-sized excavators (20-30 tonnes) rose by a notable 64.9% on year to 37,991 units; those of large-sized excavators (≥30 t) rose by 58.9% on year to 21,629 units, and those of small-sized machines (<20 t) moved up by a comparatively moderate 41% on year to 82,661 units, according to the statistics.
Written by Anna Wu, wub@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com