Will the demand for construction machinery steel continue to warm up

In October 2022, the statistics of China Construction Machinery Industry Association showed that 26 excavator manufacturers sold 20501 excavators of all kinds, an increase of 8.1% year on year. 22 loader manufacturers sold 9448 loaders of various types, with a year-on-year growth of 1.85%.

Driven by the constant implementation of a package of policies to stabilize growth and the continuous implementation of multiple funds, the wave of centralized commencement of multiple projects is repeated in many places. Will this bring more opportunities for the continuous recovery of the construction machinery industry?

At present, despite the continuous promotion of multiple funds and the reappearance of the nationwide construction boom, due to the influence of weather factors in autumn and winter, the construction progress and intensity will be significantly affected, which will restrict the terminal demand of the construction machinery market. Moreover, the profits of construction machinery manufacturing enterprises have declined significantly, and the enterprises are also under great pressure of insufficient effective orders, which restricts the release of steel demand for manufacturing of construction machinery enterprises.