Posted on 29 Mar 2023
China's excavator sales for both domestic and overseas markets are expected to drop by 33% on year to 25,000 units in March, according to the latest forecast released by the industry magazine Construction Machinery and Equipment (CME).
Among the total, China's domestic sales of excavators are forecast to fall 44% on year to 15,000 units this month, while exports sales may slip by 5% on year to reach 10,000 units.
Starting from December 1 2022, China's central government had banned both the production and sales of non-road motor machinery (including excavators and loaders) whose exhaust emissions failed to meet the latest Stage IV emission standards, as reported.
Consequently, many customers in need of excavators had bought cheaper Stage III excavators and loaders before last December, and the market still needs time to accept new machinery complying with Stage IV standards, the CME noted.
Besides, many end-users suffered from limited cash flows during March, mainly due to their low collection of payment on projects. This has dampened the downstream demand to some extent.
The adverse weather conditions like heavy rains in some regions of China have disrupted the delivery of excavators, which will also contribute its part to the poor domestic sales in March.
However, China's social financing has released positive signals to the market, with the newly-added special bonds reaching Yuan 3.8 trillion ($552 billion) throughout 2023, up by Yuan 150 billion on year, according to the annual government work report delivered at the "Two Sessions" - annual meetings of China's top legislature and its top political advisory body.
Source:Mysteel Global
