Sales of excavators and other construction equipment in China totalled 296,075 units over January to November, representing an increase of 37.4% on year – which was slightly faster than the 34.5% on-year rise seen over the first ten months, according to the latest data from the China Construction Machinery Association published on December 9. The demand is expected to remain robust until at least Q1 next year while in parallel, China’s market share of the machinery industry globally has also markedly increased, CCMA noted.
In the total of sales over the first eleven months among China’s 25 major manufacturers under the association’s survey, domestic sales accounted for 265,545 units or 89.7% whilst exports contributed to 30,530 units or 10.3% of the total. Sales of both had increased significantly on year, rising by 37.4% and 28.8% respectively, CCMA’s data showed.
“In 2019, Chinese excavator sales as a proportion of global sales reached 60%, and the proportion is likely to exceed 70% this year,” Sun Zhe, CCMA secretary general said at the T50 Summit of World Construction Machinery Industry conference in late November.
Machinery manufacturers in Europe and Japan are seeing their sales this year drop sharply by at least 20%, while sales of Chinese producers have surged by more than 20%, according to him.
Besides the higher exports, robust domestic sales were the main reason for the outstanding performance of the machinery sector over the eleven months.
“Currently, most major suppliers of spare parts used in machinery manufacturing are facing difficulties because the capacity on stream is not sufficient to meet the growth in demand,” a Shanghai-based analyst said. “The demand in third quarter – which is supposedly the slack consuming period – was not weak, and the outlook for the near term until Q1 (2021) is positive,” she added.
In November alone, yellow goods sales in China leapt by 66.9% on year to 32,236 units, among which 28,833 units or 89.4% were for domestic customers, up 68% on year, the CCMA statistics showed. Excavator exports also rose 57.8% on year to 3,403 units, accounting for 10.6% of the total.
Written by Anna Wu, wub@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
Photo: China Daily
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