Trapped in earthquakes in Japan, the import of construction machinery used excavator will decline

Japan is China's top three importer and exporter of construction machinery. Japan is China's top three importer and exporter of construction machinery. However, China's export of Japanese construction machinery is less than US$400 million per year, while imported Japanese construction machinery can reach as much as US$2.5 billion per year. China's imports of Japanese construction machinery are mainly used excavators, elevators and crawler bulldozers. All three types of products account for more than 70% of imported products of the same type in China.

In 2010, China imported about 40,000 excavation machines, among which the estimated number of imported excavators imported from Japan is more than 30,000.

Japan's earthquake will affect China's construction machinery market by affecting the supply of construction machinery in China. Although Japan is one of China’s larger exporters of construction machinery, due to the low concentration of export markets for construction machinery in China, exports to Japan’s construction machinery account for only 8% of China’s total export volume, and since Japan is a strong manufacturing country for construction machinery, China can export Japan is mainly low-end machine and spare parts. It cannot be expected that Japan’s post-disaster reconstruction will import a large number of construction machinery from China, but it can be expected that post-disaster reconstruction will cause the construction machinery imported from Japan, especially used excavators, to decline substantially, while the market for used excavators will be mainly domestic excavators. Instead, domestic excavator manufacturers will benefit.

The main benefit from company analysis. The three types of products imported by China from Japan are used excavators, elevators and crawler bulldozers. It is expected that post-disaster reconstruction will significantly reduce the export of three types of products to China. In particular, used excavators and crawler bulldozers will be significantly reduced, creating opportunities for China's domestic excavators and bulldozer manufacturers. The manufacturers that benefit the most from the excavator are the domestic-funded enterprises Sany Heavy Industry, Liugong, Shanhe Intelligent, and Xiagong, in addition to Hyundai and Doosan. The bulldozer manufacturing companies mainly benefited from Shantui, Hebei Xuangong, Liugong and Zoomlion.