August excavator sales decline in the chain is rapidly narrowing next month is expected to usher in a rebound

â—† The month-on-month decline in August quickly narrowed, and expectations rebounded in September.

August sales of excavators slightly decreased from the previous month, and the decline rate of the excavators quickly narrowed. Combined with past annual sales performance, sales in September will usher in a rebound, and it is expected that August is likely to be the lowest point in the year, which will lead to blowouts in annual sales in 2010. It is worth noting that in 2010, the market volatility was relatively large. After creating a volume of days in March, it fell sharply for several consecutive months, and the market began to stabilize in the last two months, which made it difficult to adjust the production capacity of enterprises.

â—† The export market performed well in August, and overseas markets ushered in rigid demand.

In August 2010, China's export sales of excavators remained high, and the export market remained stable and continued to maintain a high level of exports. Judging from the economic environment of foreign markets, it does not seem to support such a high level of exports. Restocking and apparent rigid demand are strong driving forces for the export market.

The import machine market is still dominated by four companies: Caterpillar, Hitachi Construction Machinery, Hitachi Zhongju, and Kobelco. Large-tonnage products dominate the market, indicating that the domestic R&D level of large-tonnage products is still far behind foreign first-class companies. .

â—† The CPI has reached a new high and monetary policy adjustments are on the verge.

In August, consumer prices rose by 3.5% year-on-year, an increase of 0.2% from July. The CPI has reached a new high, inflationary pressure is obvious, and the market has raised its interest rate. Relative to the continuous adjustment of foreign economies, the domestic economic environment is still good, but the economic downside risks and inflationary pressures still exist, the economic volatility begins to increase, and business operations are facing greater risks, especially the production capacity adjustment is under great pressure.

â—†Upward pressure on steel prices, excavator companies face rising costs

In August, the PPI fell slightly compared to the previous month, and the probability of a short-term bottoming out was greater. In particular, the purchasing index rose sharply this month, forming a support for the PPI bottoming out. Steel prices have rebounded rapidly under the control of state-restricted electricity policies. Major steel mills have gradually raised the future prices of steel products. Under the influence of power-restricting policies, the issue of curbing the overcapacity of steel prices has been solved, and steel prices are expected to continue to rise, which will have an adverse effect on excavator manufacturing enterprises.