Machinery / Industrial Parts & Tools

According to the Huacheng Import and Export Data Observation Report, in September 2022, the excavator sales volume returned to the positive value at a year-on-year growth rate of 5.49%, which not only created the smallest year-on-year decline in the domestic market in the year, but also created a new historical high in exports, accounting for more than 50% for the first time. Stable recovery for three consecutive months, driven by national infrastructure investment and multiple enterprise initiatives, the industry's resilience has become prominent!

The year-on-year growth rate returned to a positive value, stabilizing and recovering for three consecutive months

According to the observation report on the import and export data of Huacheng, 21187 excavators of all kinds will be sold in September 2022, with a year-on-year increase of 5.49%, including 10520 domestic excavators, with a year-on-year decrease of 24.5%; 10667 sets were exported, with a year-on-year growth of 73.3%.

From January to September 2022, 200296 excavators were sold, a year-on-year decrease of 28.3%; Among them, 119990 were domestic, down 48.3% year on year; 80306 sets were exported, with a year-on-year growth of 70.5%.

In terms of data, this is the largest year-on-year increase since the sales volume fell in May last year. In July of this year, the excavator sales volume increased positively for the first time (3.4%) after the "14 consecutive drops". In August, the sales volume did not continue to grow at a positive rate, but remained the same as the same period last year. The steady recovery for three consecutive months is, on the one hand, an improvement in the domestic market stimulated by downstream demand; on the other hand, an effective hedge against the record high export volume.

The domestic decline was the lowest in the year, and the infrastructure investment was effectively stimulated

In September, the sales of domestic excavators fell by 24.5% year on year. Although it was still affected by the cyclical downturn and excessive stocks, the decline was the lowest in the year and the smallest since August last year, Huacheng Import and Export Data Observation reported.

From the sales in September of the past years, the domestic sales in September of this year were still the lowest in recent five years, but still at a high level overall, and the gap is narrowing.

The improvement of domestic sales in September was mainly stimulated by infrastructure investment and capital decentralization. According to the statistics of big data of infrastructure communication, in September, there were about 122 infrastructure projects nationwide, including roads, railways, rail transit, water conservancy and power, municipal administration, industrial parks, ports, airports, etc., with a total investment of about 1573.1 billion yuan, and several large projects with a total investment of more than 30 billion yuan started! According to the statistics of the Ministry of Water Resources, in September, the national investment in water conservancy construction was 79.5 billion yuan, and the national investment in water conservancy construction was 120 billion yuan (the data is based on the comparison between the investment data of the Ministry of Water Resources in the first nine months and the previous eight months).

At the same time, in September, special bonds and policy based financial instruments made significant efforts to offset the adverse impact of the decline in local government land transfer fees on infrastructure investment to a large extent, and played a timely role in complementing.

Exports hit a new record high, accounting for more than 50% for the first time

In September, the export sales volume of excavators was 10667, with a year-on-year growth of 73.3%, which not only created the highest peak over the years, but also accounted for 50.3% of the total monthly sales volume, exceeding the domestic market sales for the first time, achieving a positive growth for 63 consecutive months (since July 2017).

Export has become an important strategy for Chinese construction machinery enterprises to cope with the domestic downturn. Deeply accelerating overseas layout is becoming a common choice for many enterprises. Especially in Southeast Asia, Africa, the Americas and countries along the "the Belt and Road", it is becoming a hot spot for China's export of construction machinery. Huacheng Import and Export Data Observation Report.

Exports, infrastructure, real estate and the fourth quarter of the country jointly boost demand in the fourth quarter

With the arrival of the traditional peak season of "golden nine and silver ten", infrastructure construction pressed the "acceleration key", and a number of major projects accelerated to form physical workload. According to the analysis of many experts, infrastructure investment is an important means to stabilize the economic market. With the continuous increase of the policy of stabilizing the economy and investment, the growth rate of infrastructure investment in the fourth quarter is expected to further increase.

At the same time, the decline in the growth rate of real estate investment is expected to narrow. The reduction of LPR and provident fund interest rates, the relaxation of the lower limit of the first housing loan interest rate, and the launch of the national rescue fund for guaranteed delivery buildings will all boost residents' confidence and demand for housing in the fourth quarter.

According to the observation report of Huacheng import and export data, the non road national four emission standard will be fully implemented on December 1. Under the pressure of enterprises' accelerating the clearance of national three inventory and environmental protection emissions, it will effectively promote the sales of construction machinery products such as excavators in the fourth quarter.

Finally, as the economic construction of most developing countries is facing a boom cycle, the high growth of excavator international trade exports will continue.

In general, the excavator sales in the fourth quarter are still expected to continue to grow at a positive rate, but there will not be much growth.