China's excavator production and sales data has turned positive year-on-year

From the second quarter of 2024, China excavator production and sales data returned to positive year-on-year growth, ending the 35-month period of consecutive declines since May 2021. This recovery in excavator data signals a gradual improvement in industrial demand for hot-rolled coil (HRC) steel.

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According to specific data from the China Construction Machinery Association, a total of 14,647 excavators were sold in August 2024, representing a year-on-year increase of 11.8%. Of these, 6,694 units were sold domestically, a rise of 18.1%, while 7,953 units were exported, up 6.95%.

In terms of steel demand for sheet products, many components of an excavator, such as the bucket, boom, chassis, and body, are made from hot-rolled coil and medium-thickness plate. Based on the formula for HRC consumption (HRC consumption = excavator production and sales * steel usage coefficient), it was calculated that the demand for HRC in August 2024 amounted to 194,800 tons, an 11.77% year-on-year increase and a 6.99% month-on-month increase. A comparison of the excavator-related HRC consumption over the past two years (as shown in Figure 1) reveals that in 2024, only in February and March did the steel consumption for excavators show a downward trend, while the rest of the time, demand for HRC remained on an upward trajectory.

On a month-to-month basis, excavator-related HRC demand first increased and then decreased throughout the year, peaking in March before gradually declining, following the seasonal pattern of excavator production and sales. According to this pattern, HRC demand from the excavator industry is expected to gradually increase in the second half of the year, peaking in November.

Data from the China Construction Machinery Association indicates that between January and August 2024, a total of 131,550 excavators were sold, reflecting a 2.21% year-on-year decrease. The primary reason for this decline is the low sales volume in February, which dragged down the overall performance for the first eight months. In terms of domestic and export figures, domestic sales of excavators reached 66,335 units, up 7.32% year-on-year, accounting for 50.43% of total excavator sales. On the other hand, exports totaled 65,215 units, down 10.3% year-on-year. Although export sales have declined compared to the high base in previous years, exports still remain a significant driver of overall excavator demand. Domestically, with over half of the sales occurring within China, the data reflects a gradually improving domestic demand.

As production and sales data continue to improve, positive signals are being released. Excavators, considered a barometer of China's infrastructure sector, are reflecting some recovery in the construction industry. In the context of a sluggish real estate market, infrastructure and steel structures are becoming key drivers of demand for hot-rolled coil. The positive outlook for China's excavator market indicates resilience in demand for HRC in the construction industry.

Looking ahead to the fourth quarter, excavator production and sales are expected to follow their usual seasonal trend, with the peak occurring in March and gradually declining afterward. The peak in the second half of the year typically occurs in November. It is projected that excavator sales from October to December will first increase and then decrease, with a peak in November. Consequently, demand for HRC in the machinery sector is likely to improve starting in October, with further improvement expected in November. Overall, demand for HRC from the excavator industry is estimated to reach 3.0566 million tons in 2024, representing an 18% year-on-year increase.

Shandong Yuanwang Import And Export Co., Ltd.

https://yufanmachinery.com/
Han Yu Finance Valley, No. 7000 Jingshi Road, Jinan, Shandong, China.
Email:info@yufanmachinery.com
+86 53168656659
+86 18560052759

Shandong Yuanwang Import And Export Co., Ltd.
Han Yu Finance Valley, No. 7000 Jingshi Road, Jinan, Shandong, China.
info@yufanmachinery.com +86 53168656659
+86 18560052759

Yuanwang Imp&Exp Co., Ltd is a state-owned organization, with two subordinates: YUFAN machinery and WOTAIchem. Our commitment to quality, service, and customer satisfaction is unparalleled in the industry. The professionalism and expertise of Yuanwang's workforce make the company one of the best-preferred suppliers in the market.

This release was published on openPR.