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Construction Machinery Industry Enters The Quantity Price Zisheng Channel

Edit:Kyotechs Machinery Co.,LtdUpDate:Mar 21, 2018

According to the Construction Machinery Association data show that 2017 domestic excavator sales of 140302 units, an increase of 99.5%, car crane sales of about 20508 units, an increase of 119.22%. Starting point of view, Komatsu excavator start-up hours of about 1606 hours, an increase of 5%. From the absolute sales of excavators and its growth rate, the current demand intensity is comparable to 2009-2011. Current requirements are tracked to present several features:

(1) The demand boom still maintained a relatively high level;

(2) The current inventory in the sales channel is low;

(3) The middle and large digging is still in the state of out of stock;

(4) The capacity of excavator parts enterprise is tight.

The effect of price increase began to spread, the industry entered the Zisheng channel.

Since October 1, 2017, the loader in the industry's first to start price increases, and then, excavators and concrete machinery products have also raised prices. This round of demand is accompanied by the trend of Zisheng, we think the core reason is:

(1) Micro-demand basic improvement, the social ownership growth rate began to bring the downward trend of supply, but the investment growth rate steadily upward, forming a "scissors";

(2) The stock equipment is gradually cleared up, which brings the utilization rate of the stock equipment and the improvement of profitability;

(3) Cost factors, steel price and rubber and other prices continued to increase the price of products.