[SMM brief Review] excavator sales rose 24.2% in June compared with the same period last year. Water conservancy construction once again supports machinery demand.

SMM7 March 14: according to the industry statistics of China Construction Machinery Industry Association, 25 mainframe manufacturing enterprises included in the statistics from January to June 2020 sold a total of 170425 sets of excavation machinery products, an increase of 24.2% over the same period last year. In June, a total of 24625 sets of excavating machinery products of all kinds were sold, an increase of 62.9% over the same period last year. Sales in the domestic market were 21724 units, an increase of 74.8% over the same period last year. Export sales were 2901, up 7.6 per cent from a year earlier.

The increase in infrastructure investment is expected to further increase sales in the construction machinery industry. The machinery manufacturing industry increased greatly in the first half of the year, and the demand for hot-binding plate coil was well supported. However, as the summer off-season enters, sales growth may slow in July. According to the research results of SMM, most terminals reported that due to the rainy weather, the situation of new orders received in July was slightly weaker than that in June, fortunately, there were more orders overtaken in the earlier period, and there were no major problems in production and sales in July as a whole, but the incremental space was limited compared to the previous period. Therefore, as far as July is concerned, the demand for sheet coil of construction machinery can still be maintained, but due to the weakening of new orders, it is expected that this part of the demand has limited room to rise.

Soochow Securities pointed out that since March, the industry has been in short supply and production capacity has been tight, and the situation has eased somewhat in June. It is expected that the delayed demand effect caused by the epidemic from July and August will gradually weaken, and the market will gradually return to the normal level. Guojin Securities believes that the scene of construction machinery will continue to exceed market expectations, and based on upstream and downstream industry data, sales growth in July is expected to exceed 60%, and excavator sales growth is expected to exceed 25% in 2020. Concrete machinery growth is expected to maintain 20% growth, truck crane growth is expected to maintain more than 15% growth.

It is worth noting that the recent flood and waterlogging disasters in some parts of our country are serious. Vice Minister of Water Resources Ye Jianchun said at a regular policy briefing of the State Council that the Ministry of Water Resources will step up the construction of 150 major water conservancy projects previously deployed by the National standing Committee, in order to promote the expansion of effective investment and enhance the ability to prevent flood and drought disasters. Plan for the construction of 150 major water conservancy projects this year and the follow-up, with a total investment of about 1.29 trillion yuan, which can lead to direct and indirect investment of about 6.6 trillion yuan, with an average annual creation of about 800000 jobs. In addition, the National people's Congress approved a new local government special debt limit of 3.75 trillion in 2020. After deducting the quota of 2.29 trillion issued in advance and the quota of 200 billion to replenish the capital of small and medium-sized banks, the quota issued in early July was 1.26 trillion. The increase of special debt financing in various places has not only promoted the smooth construction of a large number of projects, but also led to the continuous demand for related building materials, terminal machinery and so on.

Scan the QR code and join the SMM metal communication group.