How popular is the excavator market? Another historical high in sales for the same period!

As the beginning of the second half of the year, the excavator market performance in July remains strong. According to statistics from the Mining Machinery Branch of the China Construction Machinery Industry Association, in July 2020, a total of 19110 types of mining machinery products were sold, a year-on-year increase of 54.8%, setting a new historical high in sales volume for the same period in a single month, further exceeding market expectations.

The month on month increase in the domestic market has narrowed, still exceeding market expectations

According to the operating hours of Komatsu excavators, which reflect the level of infrastructure activity, the utilization hours of Komatsu excavators in China decreased by 3.1% year-on-year in July, indicating that the delayed demand effect formed by the epidemic since July has gradually weakened, and the market has gradually returned to normal levels.

Although the month on month increase in excavator sales in the domestic market in July further narrowed compared to the previous four months, it still showed a significant upward trend year-on-year, with an increase of nearly 60% (actual year-on-year growth of 59.5%), and sales reached 16253 units, exceeding market expectations. In addition to the needs of traditional infrastructure, the new infrastructure has brought about a surge in small-scale urban construction, greatly increasing the demand for construction machinery and equipment. In addition, business scenarios such as urbanization and infrastructure acceleration in rural areas are also driving the increasing demand in the domestic excavator market.

The export market continues to strengthen, with a year-on-year increase of 32.5%

With the vast majority of countries resuming work and production, entering the post pandemic period, China's excavator export sales have gradually rebounded in the past four months. After experiencing a year-on-year growth of less than 8% in the export market for three consecutive months, the export market in July made a significant impact. The export volume of excavators reached 2857 units, close to the higher export value of a single month in the first half of the year, and the year-on-year growth soared to 32.5%, becoming a month with a higher year-on-year growth in exports after the global outbreak of the COVID-19 epidemic.

However, due to the continuous increase in confirmed cases in some countries, including some regions experiencing a resurgence after the epidemic improved, the global epidemic has remained unpredictable from April until now. Therefore, the future trend of overseas market demand still needs to be constantly monitored.

The year-on-year increase in China's mining industry is significant, while the proportion of small mining sales has decreased

From the perspective of tonnage structure, the sales volume of large-scale excavation (≥ 30t) in July was 2637 units, a year-on-year increase of 53.3%; The sales volume of Zhongdiao (20-30t) was 4530 units, a year-on-year increase of 65.3%; The sales volume of Xiaodiao (<20t) was 9086 units, a year-on-year increase of 58.6%. The sales of three types of tonnage excavators have all achieved a significant increase of over 50%, with China Excavator experiencing a significant year-on-year increase.

In terms of market share, major mining, medium mining, and small mining account for 16%, 28%, and 56% respectively. Among them, due to the impact of rainfall on demand or disturbance in July, Xiaodiao became the product with a decrease in market sales proportion that month, but it will continue to maintain a growth trend in the long run. Benefiting from the rise in commodity prices, the willingness to mine domestically has increased, leading to an increase in demand for large-scale mining.

Generally speaking, July is the traditional off-season for sales of construction machinery, but against the backdrop of provinces and cities vigorously issuing special bonds to stabilize the economy through infrastructure construction, this year's excavator market still shows the characteristic of not being weak in the off-season. In addition, the upgrading of environmental protection is driving the demand for machine replacement in the industry, which is expected to become a new driving force for the sales of new machines by construction machinery enterprises. Therefore, many industry insiders predict that the domestic excavator market will continue to maintain high growth in the second half of the year.