Signs of Recovery in China's Construction Market? Excavator Sales Increase by 25%

May Nationwide Construction Equipment Utilization Rate at 57%
Anhui Province, Beijing, Hubei Province Exceed 70%

Last month, domestic excavator sales in China increased by about 25% compared to last year, raising expectations for a recovery in the construction market. However, due to continued sluggish exports, the overall sales volume only saw a slight increase.

According to the China Construction Machinery Industry Association on the 8th, last month’s domestic excavator sales in China reached 7,661 units, a 25.6% increase compared to the same period last year. Exports amounted to 8,942 units, a 7.5% decrease during the same period, resulting in total sales of 16,603 units, up 5.31% from last year.

The total sales volume for the first half of the year was 103,213 units, down 5.15% compared to last year. Domestic sales were 53,407 units, up 4.66% year-on-year, while exports decreased by 13.8% to 49,806 units.

Excavators are widely used at construction sites and are the equipment most sensitive to changes in the related market, holding the largest sales share among construction and machinery types. Their sales volume is regarded as a leading indicator reflecting not only the construction and machinery industries but also the overall economic conditions.

Loaders, used for cargo loading, sold 10,794 units last month, a 26.2% increase compared to the same period last year. Domestic sales were 5,296 units, and exports were 5,498 units, increasing by 22.6% and 29.8% respectively from last year. Based on the first half of the year, a total of 57,018 loaders were sold, a slight increase of 0.74% compared to last year.

In June, 16 electric excavators and 1,570 electric loaders were sold, marking increases of 128.57% and 25.6% respectively compared to the previous month. For loaders, electric loader sales accounted for 14.55% of the total market.

According to the China Central Television (CCTV) Financial Excavator Index, civil engineering projects in China continued their growth trend in May, and the operating rates of lifting, excavation, and road equipment remained at high levels. The nationwide construction machinery operating rate in May was 56.94%. Among them, Anhui Province, Beijing, Hubei Province, Zhejiang Province, Jiangxi Province, and Hebei Province all had operating rates exceeding 70%. Zhejiang, Jilin, Tibet, and Qinghai provinces reached their highest operating rates this year.

China Dongwu Securities recently stated in a research report that "domestic infrastructure investment is continuously improving," and "construction machinery sales will clearly reach an upward inflection point." Regarding overseas markets, it explained, "Due to the high base and short-term inventory pressure from last year’s peak, exports will face periodic pressure," but emphasized that "as inventory is depleted, overseas growth could accelerate in the second half of the year."