China's road roller export growth slows

Domestic market continues to slump, the export market grows slightly.

According to the statistics of China Construction Machinery Business Online, the roller sales volume of the 20 major roller manufacturers totals 1247 units in June 2012, reducing 23.31% compared with last month and 32.99% compared with the same period last year.

In the first half year, the accumulative roller sales volume of the 22 major roller makers totals 7849 units, with a year-on-year reduction of 44.87%, among which, the sales volume in domestic market is 5927 units, accounting for 75.51% of the total sales volume, with a year-on-year reduction of 51.90%; the export volume is 1922 units, accounting for 24.49% of the total sales volume, growing 0.37% compared with the same period last year.

Sany Heavy Industry and Zoomlion puts in strong performance.

In the first half year, in terms of the accumulative sales volume, XCMG continues to rank the first, with 1288 units, with a year-on-year reduction of 61.83% and a market share of 16.41%; XGMA Sanming and Luoyang Lutong are placed 2nd and 3rd, with the sales volume of 880 units and 844 units respectively. The forth to seventh place are respectively LiuGong Road Machinery, Sinomach, Shantui and Sany Heavy Industry. In all brands, Sany Heavy Industry and Zoomlion perform the best with the respective growth of 27.92% and 27.16%.

Demand for single drum mechanical roller reduces.

In the first half year, the single drum mechanical roller is still the best-seller, with the accumulative sales volume of 3617 units, accounting for a 46.08% market share; the next two are single drum full hydraulic and double drum rollers, with respective sales volume of 1358 units and 985 units. Compared with 2011, the demand for single drum mechanical rollers reduces 5.46%, while the demands for single drum full hydraulic rollers and light rollers are increase slightly.

Macroscopic interpretation

1. In the government conference held on March 5th, Premier Wen Jiabao said that China aims to grow its economy by 7.5% in 2012, which is the first time that the GDP growth is cut from 8% to 7.5% for 8 years.

2. Real estate: As to the real estate control policy, the official has confirmed not to launch new policy, but the current policy will not be loosened. Besides, the scale of indemnificatory housing construction hits a new high.

3. Railway: In the first half year of 2012, the investment to railway reduces compared with the same period last year; while in the second half year, the investment to railway will rebound due to the large-scale relaxation of the currency policy.

4. Highway construction: Though the currency policy in 2012 is positive, the highway construction still faces the capital shortage. During the twelfth five-year, the investment to highway construction decreases compared with 2010 and 2011.

5. Mining industry: Under the background of increasing resource price and stably growing demand, China’s mining industry shows stable growth trends. In 2012, because the global economy slows, the resource price is expected to fall slightly, while the investment to mining industry in China is expected to grow stably.

6. Water conservancy construction: Since 2011, the central and local governments have successively launched a series of files for the water conservancy construction. In 2011, the investment to the water conservancy construction totals CNY345.2 billion, with CNY114.1 billion from the central government and CNY231.1 billion from local governments. The investments from both central government and local governments hit a new high in the history.