Market Callback Earthworks Machinery Bewildered in the Second Half of the Year

Earth-rock machinery such as excavators, loaders and bulldozers is the largest product category for construction machinery sales. Analyzing the market conditions of these products is helpful to see the whole industry in construction machinery industry. In the second half of the year, what kind of destiny will these three products encounter under the stable background?

In the first half of the year, the purchase prices of raw materials, fuel, and power rose 10.8% year-on-year, and the manufacturing costs of companies rose significantly. In June, the ex-factory price of industrial products fell for the first time since July last year. In particular, the decline in the prices of steel and other products was the biggest benefit for the industry, which has relieved the cost pressure of the products to some extent.

However, the regulation and control of the housing market has brought great changes to the construction machinery market; the seasonal decline in investment projects and investment also makes it difficult to be optimistic about the judgment of the economic trend in the second half of the year. Since the market base laid in the first half of the year has been very good, this has made the company generally less pressure on the market in the second half of the year.

However, overseas markets in the second half of the year are not optimistic as compared with the same period of last year or the first half of this year. In particular, the overseas market’s pulling effect on China’s economy as a whole has been relatively weakened, and the construction machinery industry is bound to be affected. At the same time, the global economy has gradually entered the phase of recovery after the recovery, and the construction volume will inevitably have a certain degree of reduction. It will also increase.

Excavators: market expansion for competition

For half a year, the sales of excavators exceeded last year. This is enough to see the hot excavator industry market. The continuous increase in the number of projects started is the most fundamental reason. This includes the continuation of last year's project and the large number of new projects started this year.

There is also a problem that is worth paying attention to, which is the excavator's partial replacement of the loader. Although this is overshadowed by the simultaneous increase in sales of these two products, this trend will not stop. The most significant point is that the top eight companies in the industry's sales volume have almost no exceptions and have already launched the excavator project, and have formed a good scale of production and sales.

The competitive pressure of the excavator industry is also hidden behind the rapid expansion of the market. If the economic situation slows down in the second half of the year, due to the unavoidable problem of overcapacity in the entire industry, excavator competition pressure will be highlighted. For some companies entering the industry later, if they can not stand firm, they may encounter great difficulties.

Particular attention should be paid to the influence of the housing market regulation policy on the real estate industry, which is one of the main markets for excavators. The difficulty of construction in this area is much lower than that of mines. In this area, excavators with their own brands are very competitive. However, in the second half of this year, real estate investment is likely to fall rapidly and has a significant impact on self-owned brands.

The larger variables that still exist in the second half of this year are actually overseas markets. In the first half of the year, excavator exports increased by more than 50% year-on-year, and this seemingly good result was only acceptable in the entire construction machinery industry, because this increase still lags behind the industry's overall level. Moreover, the export volume of Yuchai Heavy Industry and Shanhe Smart, which ranked fourth and fifth in terms of export volume, even showed a certain degree of decline compared with the same period of last year.

Since the financial crisis, overseas markets have been one of the focuses that the masses are paying close attention to—the overseas markets have not resumed normal growth. It is not a long-term plan to rely solely on the domestic market to sell production. This year, many domestic and foreign companies, including Caterpillar, have further expanded their own excavator production capacity. The intention of plotting the future market is very clear. At this time, the expansion of production capacity can not be described as a game between the strength of the enterprise, which is a test of the company's judgment of the trend of the global market, but also the company's ability to adhere to the overseas market to fully recover the strength test.

Loader: R & D strength competition

In the first half of the year, the loader market was operating at a high level, and production and sales volume basically recovered to levels before the financial crisis.

This seems to make people see the loader industry once again enter the high growth track. However, in fact, the market is far from being so optimistic.

From a geographical point of view, in the first half of sales, the market in Inner Mongolia is the best. The conclusion that can be drawn is that in the first half of the year, the demand for loaders in the mining sector has increased dramatically. This point can also be reflected from the perspective of the company. Among the top companies, apart from the continued growth of Liugong, the rest of the companies are down. This also explains to a certain extent that heavy-duty mining and mining products that focus on long wheelbase are the main products of mine appeals.

The fall of other companies showed that the overall market for loaders gradually entered a period of seasonal decline. On the one hand, due to the rapid expansion of the market in the first half of the year resulting in a large base, on the other hand reflects the economic slowdown in the industry's impact. In the second half of this year, the overall market for loaders will likely show a steady state of development. This is precisely the pre-judgment of people in the industry.

In terms of exports, China’s export of loaders showed a recovery trend in the first half of the year. Liugong and Foton Lovol showed outstanding performance. From the perspective of product structure, the medium-sized loader is still the main model of the export market. Although the unique competitiveness of Chinese loaders in the world will still allow companies to maintain a certain market share. However, the situation in the second half of the year is even more uncertain. On the whole, in the face of complex market conditions, companies should proceed with caution.

As the degree of concentration continues to increase, the competition between loader companies has become increasingly white-headed. This competition is directed at the core competitiveness of products. Improve product efficiency and achieve greater energy-saving emission reductions The entire industry began to develop a new generation of energy-efficient loaders. In this regard, temporary workers are the fastest. In the second half of the year, the technology war between companies will also intensify.

Bulldozer: Multi-Participation in Replanning

In the first half of this year, the bulldozer industry increased significantly year-on-year, not only over the same period of the previous two years, but it is particularly noteworthy that the peak season lasted for more than a month.

Such a booming market has attracted several large companies to start paying attention to bulldozers. In recent years, the most important companies involved in the bulldozer industry are non-Liugong and Zoomlion. On July 8th this year, Xugong and Shanghai Automotive Group Co., Ltd. reached an agreement of cooperation. The two parties agreed to jointly develop the construction machinery main business with bulldozer as the main product based on Pengpu Machinery Factory. This has become a typical example of another major company in the industry involved in bulldozers.

Bulldozers have a relatively high status in earth and stone machinery and are one of the earliest products in China's construction machinery industry. But it must be said that the limited capacity of the bulldozer market has always been relatively small. At present, the existing market structure has gradually evolved into a dominating trend for Shantui. The participation of these companies will certainly change the industry structure. However, in the second half of the year or even longer, no company has the strength to threaten the mountain. Push the leader position.

Due to the relatively low gross profit margin, bulldozers are highly affected by the cost, especially the price of steel. One view is that there are still many uncertainties in the second half of the year. Therefore, the steel market will not show a unilateral sustained rise or fall in the second half of the year. It will be a turbulent trend, but steel prices will hardly exceed 4 in the second half of the year. The high point of the month. This bulldozer will be a good Microsoft.

Bulldozers are one of the products most affected by the start of infrastructure construction. In the second half of this year, with the seasonal decrease in the amount of starts, bulldozers' market sales may also decline by a certain extent. Like other products, they tend to be stable. It is a short-term letter.

On the export side, since the financial crisis, bulldozer exports have continued to slump. In the first half of the year, the overall export market rebounded weakly and the trend was unstable. Currently, only Shantui’s export situation in the industry has an absolute advantage. According to the current situation, the situation in the second half of the year will also be difficult to predict.