China's construction machinery sales "seven consecutive losses"

The sales of construction machinery have seen a year-on-year decline for the seventh consecutive month, and the sales of construction machinery in November have fallen to the maximum during the year. Experts said that due to the current sluggish demand for construction machinery, the sales of construction machinery continued to decline, and it is expected that the trend of the construction machinery will be low and high before next year.

According to statistics from the Construction Machinery Business Network, in November, the excavator sales of 26 major excavator companies nationwide reached 8908 units, a decrease of 38.3% year-on-year, and fell for seven consecutive months, and the rate of decline in November was the largest in nearly seven months. The chain decreased slightly by 0.16%. The sales of bulldozers of 12 major bulldozer manufacturers in the country reached 711 units, which also fell for seven months in a row, which was a year-on-year decline of 23%, and the rate of decline reached the maximum in the year; this was a decrease of 3.53% from the previous quarter.

The general manager of a major customer of Zoomlion said that the current orders are more from the construction of affordable housing, and orders from railway construction are still very few. Liugong related people also said that domestic sales are sluggish, although export growth is relatively large, but the export base is relatively small.

Great Wall Securities analyst Yan Fujun believes that the sluggish sales of construction machinery is mainly due to the current weak investment side overall, and the sales of construction machinery still shows no signs of stabilization and recovery.

As for the sales situation in the next year, Su Zimeng, secretary general of the China Construction Machinery Industry Association, told the Economic Information Daily that next year's situation will depend mainly on the country’s macroeconomic situation. If monetary policy is relaxed, it will bring good news. With the construction of affordable housing, water conservancy facilities and the start of the national Twelfth Five-Year Plan, it is estimated that the sales of construction machinery will improve in the second half of next year, and the sales situation of construction machinery will show a trend of low and high after next year.