According to industry statistics from the China Construction Machinery Industry Association, in April 2021, a total of 46,572 units of various types of excavation machinery were sold, a year-on-year increase of 2.5%. Among them, the domestic market sold 41,100 units, a year-on-year decrease of 5.2%; export sales were 5,472 units, a year-on-year increase of 166.3%. In terms of domestic sales by model, the sales of large and small excavators turned negative year-on-year, while the sales of medium excavators only increased slightly by 1.3%. The sales volume of large digging was 4496 units, a year-on-year decrease of 14.2%, the sales volume of medium digging was 11,703 units, a year-on-year increase of 1.3%, and the sales of small digging units was 24,901, a year-on-year decrease of 6.3%. From January to April 2021, the 26 mainframe manufacturing companies included in the statistics sold a total of 173,513 units of various excavation machinery products, a year-on-year increase of 52.1%. Among them, the domestic market sold 154,665 units, a year-on-year increase of 47.8%; export sales were 18,848 units, a year-on-year increase of 100.3%.
Sales of excavators increased slightly by 2.5% in April, of which domestic sales declined. One reason for the decline in domestic sales is that financial support for infrastructure may begin to cool down. Public budget expenditures in March 2021 grew by 0.2% year-on-year, which was -4.7% from the annualized growth in 2019. The growth rate also fell, indicating that the financial support for the economy has slightly converged. Among them, expenditures on transportation, agriculture, forestry and water, and urban and rural community affairs The growth rate is lower than the average level in the fourth quarter of last year. Second, orders in the downstream industries have decreased significantly, and production by construction machinery companies has declined. According to Mysteel's survey, as of April 30, the daily consumption of raw materials in sample companies in the construction machinery industry has fallen by 15.55%, and raw material inventories have increased by 3.29% month-on-month.
Although construction machinery exports continued to increase significantly year-on-year in April, the month-on-month decline was significant. In the first quarter, my country’s total exports of construction machinery totaled US$4.243 billion, a year-on-year increase of 51.3%, accounting for 63.2% of total exports; parts exports were US$2.471 billion, a year-on-year increase of 40.1%, accounting for 36.8% of total exports. The main complete machines with increased exports from January to March include: crawler excavators, forklifts, loaders, etc. The main reasons for the decrease in exports are: tunnel boring machines, etc. Among them, the total export of construction machinery to Asia was US$2.942 billion, accounting for 43.8% of total exports; a year-on-year increase of 40.3%. The main Asian countries are Japan, India, Vietnam, Indonesia, Thailand, South Korea, the Philippines and Malaysia. Entering April, the outbreak of the epidemic in India, suppressed domestic economic activities, and Japan was also affected by the epidemic, resulting in a significant decrease in the amount of my country's construction machinery exports to Asia month-on-month, but still maintained high growth year-on-year.
According to the statistics of 23 loader manufacturers from China Construction Machinery Industry Association, 18,354 loaders of various types were sold in April 2021, a year-on-year increase of 9.04%. Among them: 16,506 loaders of 3 tons and above were sold, a year-on-year increase of 3.36%. The total sales volume in the domestic market was 15,194 units, a year-on-year increase of 2.47%; the export sales volume was 3,160 units, a year-on-year increase of 57.7%. From January to April 2021, a total of 57,687 loaders of various types were sold, a year-on-year increase of 39.6%. Among them: 53,076 loaders of 3 tons and above were sold, a year-on-year increase of 35.7%. The total sales volume in the domestic market was 45,798 units, a year-on-year increase of 38.1%; the export sales volume was 11,889 units, a year-on-year increase of 46.1%.
The sales of construction machinery in May gradually shifted to the off-season, but the year-on-year growth may still maintain a low rate. With the intensive start of infrastructure projects since March, the implementation of new projects has gradually slowed down, and the urgency of demand for construction machinery has declined. At the same time, according to the sales volume over the years, the sales of excavators and loaders in the second quarter showed a downward trend. Therefore, in May, the sales of construction machinery gradually shifted to the off-season. According to feedback from sample companies, orders for construction machinery in May dropped slightly from April. Due to the high base last year, it was mostly flat or slightly down year-on-year, and the production rhythm was still tight. However, the price of raw materials such as steel has risen too fast, which has led to rising corporate procurement costs and compressing corporate profits. Some companies may be suppressed by costs to adjust their production rhythm, which will affect the sales of construction machinery. On the whole, under the background that the investment in infrastructure and housing construction is still relatively stable, the sales of construction machinery in May will continue to maintain a low growth rate, and the cumulative growth rate will continue to decline.
