The engineering machinery manufacturers including Sany and Komatsu in the end of 2017, the price adjustment of some products indicates that the construction machinery industry is experiencing a wave of price rise this year.
In December 2017, Komatsu (China) Investment Co., Ltd. (hereinafter referred to as Komatsu China) informed the agent that the price of the Komatsu full range has been raised since January 1, 2018. After 9-10 month also appeared loader collective price phenomenon, Guangxi Liugong (8.520, -0.06, -0.70%) mechanical Limited by Share Ltd (000528.SZ, hereinafter referred to as Liugong machinery), Shantui construction machinery Limited by Share Ltd, Xuzhou Construction Machellonery Group Inc (hereinafter referred to as Xugong (4.770, -0.01, -0.21%), 000425.SZ), Fujian Jin Machinery Co. Ltd the loader collective price increase of 10 thousand yuan -2.
Caterpillar vice president, Caterpillar (China) Investment Co., Ltd. chairman Chen Qihua told reporters that the original interface, the price has not changed, but the next generation of for products and technology upgrades, models slightly than the original price should be relatively higher.
Sany (600031.SH) dealers told reporters at the interface that the company's excavators rose 3% in January. Liugong machinery said it has not received the price information of the competent department.
According to the securities brokerage is expected, the domestic mainstream excavator manufacturers Sany, Liugong machinery, Xugong and Shandong Lingong Construction Machinery Co or will follow the Komatsu price range in about less than 10%. The price increase of large and medium-sized excavators will be larger than that of small excavators.
"The cost of construction machinery products is the trend of the times, which is related to the cost side, environmental protection policies and downstream needs." Yin Xiaoli, Deputy Secretary General of China Construction Machinery Industry Association, told the interface reporter.
The high price of steel is one of the fundamental reasons for the increase in the price of the engineering machinery. Since the price of Chinese cabbage appeared in 2015, the price of steel began to rise in 2016. Since 2017, it has been fiercely affected by environmental protection, limited production and low inventory.
The price of steel increased by 1000 yuan in 11-12 months in 2017. In December 1st, the steel price index of the Shinkansen main line went through the 5000 point again after six years. By December 5th, the steel price index reached 5230 points, reaching the highest point of the year. In addition, many of the parts and components manufacturers and foundries that are not up to the standard are shut down under the pressure of environmental policy. Many steel mills also start saving energy and reducing emissions, resulting in the increase of raw material prices of spare parts.
At the same time, the demand for the downstream market is still strong. "The main reason for the price driven manufacturers to make decisions is the market demand," iron net firm strategic cooperation vice president Wang Yefeng on the interface of news reporters that China engineering machinery market after five years after the downturn, in the recovery phase, especially in the second half of 2017, affected by the upstream parts manufacturers supply ability, some of them had not seen for years of supply situation.
China engineering machinery industry association mining machinery branch 6 released data show that 25 hosts included in the statistics of manufacturing enterprises, the year 2017 total sales of all types of mining machinery products 140 thousand units, an increase of 99.5%, becoming the third highest since 2011, after 2010.
Tianfeng securities is expected in 2018, the engineering machinery industry demand will continue strong growth in January, or up to 200%, the first quarter growth is expected to reach 30%.
Since the second half of 2016, the major types of construction machinery have been in a state of tight supply and demand, especially in parts and components. Soochow securities (10.420, 0.17, 1.66%) believe that this is mainly due to the industry adjustment time is too long, and the host manufacturers' confidence in recovery is not enough, so the pressure of cost side is mainly through the scale effect.
Yin Xiaoli pointed out that the price changes of the present mechanical engineering products are not so much the price rise as the normal return to the reasonable price. After five years of "cold winter", the construction machinery industry has been defeated, and the price war has been fought for the survival of the construction machinery industry, resulting in the fact that the product price is not consistent with the value, causing the industry's chaos and disorder, and there are many low-end products. "After five years out of the low-end products in the mighty wave crashing on a sandy shore, at the same time, update according to the national environmental protection policy. This price rise is actually a return on the basis of irrational price wars and low-end products in the early period.
"Domestic engineering machinery industry has a" well blowup "price increase probability is not large, but when upgrading products and adjusting product mix, it is more likely to adjust prices appropriately. The head of the stock certificate affairs of a large machinery manufacturer in China said to the interface news reporter.
Soochow Securities pointed out that this round is a structural price rise, and the overall price increase of the excavator industry remains to be observed. From the view of the price rise logic, the higher concentration of the concrete machine and the crane faucet have more power and ability to raise prices.
Wang Yefeng said, because the competition pattern of construction machinery in Chinese market has not yet been stable. Especially for some local businesses, there is still a great expectation of increasing market share. Some foreign businesses also want to further expand their share in the Chinese market.
"The Komatsu Chinese price, will not cause other manufacturers to follow suit, also will not have the industry widespread price phenomenon," he said, this is mainly due to raw materials, rising labor costs and not to the critical point of the survival and development of the excavator manufacturers, the gross profit margin is relatively, road machinery manufacturers, prices generally more likely.
