1. The CMI index in May was 135.07, and the market remained high
According to data released by Craftsman Construction Machinery, the China Construction Machinery Market Index (CMI) in May 2020 was 135.07, an increase of 0.68% year-on-year and a decrease of 2.85% month-on-month
Comparing the monthly sales of excavators and the trend of CMI, the sales of excavators and CMI have a good consistency. Although the CMI remained in the expansion range in May, it showed a slowing trend. It is expected that sales of excavators in May will continue to decline compared with April.
2. From January to April, the growth rate of investment on the demand side of construction machinery resumed faster
From the perspective of demand-side investment, in terms of fixed asset investment, national fixed asset investment (excluding farmers) from January to April 2020 was 136.824 billion yuan, a year-on-year decrease of 10.3%, a decrease of 5.8 percentage points from January to March.
In terms of infrastructure investment, the growth rate of infrastructure investment in January-April decreased by 11.8% year-on-year, a decrease of 7.9 percentage points from January to March.
In terms of real estate investment, the growth rate of real estate investment from January to April was -4.5, which was 4.8 percentage points narrower than the decrease from January to March.
In the mining industry, the investment growth rate of the mining industry from January to April was -9.2%, an increase of 6 percentage points from the decrease from January to March. But it is worth noting that the growth rate of fixed asset investment in the coal mining industry in the mining industry still maintains a positive growth rate of 3.7%.
Overall, the growth rates of several major investments in the demand side of construction machinery are still in the negative growth range, but except for the mining industry, the decline in the growth rate of national fixed asset investment, infrastructure investment, and real estate investment has narrowed significantly, indicating that investment in construction machinery demand side is gradually restore.
3. The project started to drop in May, with a total investment of 2.29 trillion yuan
From the market terminal point of view, with the advent of the rainy season, the construction work in May also slowed down. According to incomplete statistics of Mysteel, there were more than 3,000 major projects started in May, and the total investment amount was about 2.29 trillion. Both the number of project starts and the investment amount decreased from the previous month, but they have increased significantly compared with the same period in 2019. .
According to the information of all parties, the growth rate of the fixed investment field that is closely related to the construction machinery industry has continuously narrowed, indicating that the current investment is still hot; however, the start of major projects in May has slowed down compared with April. It is expected that the construction machinery market will gradually enter the annual cyclical off-season in June, but the year-on-year growth rate of excavator sales will still reach 50% -60%.
