May construction machinery industry recovery is still continuing

Abstract The first quarter of 2013 has come to an end, and the outlook for the domestic construction machinery industry remains uncertain. While there are signs of a slight recovery in the industry's growth rate, April saw a decline, indicating that the market is still struggling. According to customs data released for the first three months of the year, the export value of construction machinery reached $3.322 billion, marking a year-on-year drop of 17.44%. Meanwhile, the volume of exports fell sharply by 64.15%, while the average export price surged by 130.29%. This suggests a shift toward higher-value products, but overall export volumes remain well below the same period in previous years. In the same timeframe, the import value of construction machinery stood at $699 million, down 59.7% compared to the previous year. Import volumes dropped by 89.27%, but the import price increased dramatically by 275.41%. These figures highlight a complex situation where demand for imported machinery is shrinking, yet prices are rising significantly. Compared to the broader mechanical and electrical product exports, construction machinery exports are performing poorly in terms of volume and quantity. However, the sharp increase in export prices outpaces the national average, which could signal improvements in product quality or technological upgrades. On the import side, the steep decline in volume combined with a massive price jump reflects both reduced demand and potential shifts in supply chain dynamics. Despite these challenges, the construction machinery sector has seen a rebound in production and sales. However, the output growth rate slowed in April, showing that the recovery is not yet strong or sustainable. The industry continues to face overcapacity, and ongoing real estate regulations add to the uncertainty. While some downstream companies have reported improved performance, suggesting gradual market improvement, the long-term outlook remains challenging. With China’s economic growth slowing and large-scale infrastructure projects facing delays, the demand for construction machinery may not be as robust as expected. As a result, the industry is likely to remain under pressure in the coming months. The performance of listed companies during the first-quarter reports further underscores the mixed signals in the sector, highlighting both the resilience and the vulnerabilities of this critical industry.