The darkest period of domestic machinery industry has passed

The recovery of the machinery industry will evolve from downstream special equipment to parts and components to machine tools and other general equipment. Recovery is a gradual process. At present, demand is still mainly driven by domestic demand, such as railways, highways, and subways. If private investment and exports recover in the second half of the year, the most obvious benefit is still in the construction machinery industry. Machine tools and other general equipment and shipbuilding industries lag behind. As raw material prices continue to rise, there is insufficient incentive to expect that the profitability of the machinery industry will improve in the second half of the year.

The machinery industry is currently in a mild recovery process. In the first half of the year, due to insufficient capacity utilization and product price cuts, the mid-year report performance was generally lower than expected. In particular, export-led industries such as ships, forklifts and bulldozers have not yet bottomed out, but they believe that the darkest moment in the industry is over.

During the rainy season in July, the sales volume of construction machinery products fell back in time was a normal phenomenon. Benefiting from infrastructure, sales of truck cranes, excavators, and concrete machinery increased year-on-year in the second consecutive month, while earth-rock machine loaders and bulldozers enjoyed a mediocre sales. The new start-up growth is a forward-looking indicator. Even if it is a fall, it is still at a historical high. It is believed that the sales of construction machinery in the second half of the year will not be thin in the off-season.

The output of domestic CNC metal-cutting machine tools rebounded. In July, the year-on-year growth of machine tool exports increased year-on-year.

Export demand has bottomed out, and the signs of a rebound are still not obvious. In June, Korean construction machinery sales continued to rise month-on-month, down 40% year-on-year, and the decline narrowed. Sales of construction machinery in Japan only recovered to 30%-40% in the same period of last year. Orders of German factories and machinery decreased by 46% compared to the same period of last year. Narrowing; US machine tool orders fell 64% in June compared with the same period of last year. Japanese machine tool orders are still only 20% in the same period last year.