China construction machinery industry since 2009, the myth that high growth was reversed in April this year. Will this be the turning point of the industry, the industry is very concerned about.

    The main products in April were down 30%

    Just this March, construction machinery excavator, digging shovel of soil compaction machinery, transportation machinery and production, an increase also in 50%. Even the lower growth rate of concrete machinery, output growth is also above 30%. But in April, the situation suddenly worsened. It is understood, including excavators, loaders, bulldozers, cranes, construction machinery, including the April primary have emerged about the chain fell 30%.

    Specifically, the excavator sales high in March, the April were down 38.79%. The China Construction Machinery Industry Association data show that 1 to 4 months excavator sales increased by 47.4% year on year, 1 to 3 months sales rose 59.8% year on year, 1 to 2 months was 88.4%. Excavator sharp decline in monthly sales is obvious.

    Loader April total sales fell 2.86%, a decline of 28.27%. April loader industry rate of total sales were down, since April 2001, the steepest drop the chain a year. The bulldozers April sales up 1.19%, a decline of 32.81%.

    From domestic sales of several major construction machinery enterprises of view, but also there are different rate of decline. April, Liugong loader sales down 35.21% year on year, Xiamen Engineering slipped 6.62%, a slight increase Longgong 3.80% year on year.

    China Machinery Industry Federation's statistics also show that 1 to 4 months of construction machinery industry production slowed down significantly. 1 to 4 on the production of an increase of 52.16%, but the monthly average of more than 2,3 more than 6 percentage points down. Past four months to see production growth of construction machinery industry, construction machinery manufacturing industry production growth rate in April fell faster than 2,3 months respectively 7.26 and 8.26 percentage points down, and building materials production machinery industry showed a steady growth in private .

    Decline in demand is the main reason

    For one of the reasons, China Construction Machinery Association, director of statistics for analysis, said Lu Ying, April decline in the data, in part because companies from the first quarter sales ahead of overdrafts. Construction machinery industry, many companies, for the completion of the first quarter report of economic indicators have certain expectations. Thus, a quarter of the indicators in the report figures are higher. Starting from April, companies will gradually absorb these indicators. The data fall in April, there are indicators of a return to normal business factors.

    In this regard, China Construction Machinery Industry Association, former Secretary-General Chen Zhengli excavator branch also expressed similar views. He said: "I study the statistics of the industry over a decade, found one of the laws of light construction machinery industry every year, season of the points.

    Through this period, the data will rise some.

    Especially when the performance of the industry concentrated in the first quarter, the April drop of data is normal. "So he is expected to May, the data may be more pessimistic. But 8,9 data should be improved.

    Experts generally believe that the market is one of the main reasons for declining demand. It is understood that some countries stop the construction of major projects or postponed, affecting the amount of the purchase of equipment this year. Construction machinery enterprises are reflected in the high-speed rail project, this year did not start it is no longer built, and some projects are under construction at the postponed stage. In addition, some products of construction machinery enterprises have begun to cut prices. These all show that the demand for this year is not so strong last year.

    Over the past few years, construction machinery products in a way as investment goods, and a recent increase in bank interest rates to curb some spending, but also to some extent, resulting in a drop in demand. It is understood that excavators and loaders to buy companies and individuals generally can recover the investment in 3 years. In the lower bank interest rates, investors can greatly limit the use of bank leverage to obtain excess returns. But the banks, and banks have tightened their lending interest rates, this part of investors to buy construction machinery to suppress product formation.

    Lu Ying, said outside the Fourth Ring Road in Beijing's surrounding areas, at least twenty distribution of engineering machinery and equipment for a rental company that specializes in investing in the engineering machinery products. Not tighten the money supply prior to purchase these leases excavators, often able to recover the cost of one year rental.

    Data for the April decline, experts within the industry did not show too much surprise. "Overall, the trend this year, closer to our expectations," China Construction Machinery Association, said the former chairman of the Han Xuesong. Lu Ying said: "unlimited demand is unlikely, can not increase indefinitely. This year's case, the basic and consistent with our expected results."

    How the future trend?

    Future industry trends this year and what happens?

    China Construction Machinery Association, Qi Jun believe that this year's construction machinery industry will maintain a growth rate of about 20%, and 5 years in the future to maintain 17% growth rate.

    And Lu Ying said: "The increase in construction machinery sales also decreased overall space, especially excavators. But some buy into the agricultural situation in the directory will be different mini excavator."

    Although the April construction machinery industry chain appears, up two-down, but the machinery industry and other sub-sectors in comparison, an increase in construction machinery industry is still considerable. China Machinery Industry Federation statistics show that 1 to 3 months of construction machinery industry production grew 58.64%, 1 to 4 on the production growth rate is still above 50%. 12 industries in the machinery industry from 1 April output growth, the construction machinery industry growth rate is still ranked first, ranked second in the machine tool industry growth rate of 36.67% higher than the 15 percent, and 27.71 than the machinery industry % higher than the average growth rate almost doubled.

    For this year's production of excavators, Chen Zhengli optimistic, said: "excavator production in China in 2010 is 16 million units this year than last year production of certain high may reach 20 million units."

    Regardless of how the future of the industry trends, one thing that needs attention is that this year, users of construction machinery industry increased arrears. This may increase the company's normal operations and profitability more difficult. According to statistics of China Machinery Industry Federation, 1 March National Machinery Industry Accounts Receivable 1.908947 trillion yuan, an increase of 30.48%, compared with 1 to 2 months (29.39%) growth rate increased 1.09 percentage points. March month receivables 92.71 billion yuan, an increase of 56.32%.