Demand for Mining Equipment in China to grow over 7 percent annually through 2013

Demand for mining equipment in China is projected to increase at a 7.1 percent annual rate through 2013 to 150.5 billion yuan.  Gains will be stimulated by growing demand for mined products from downstream industries such as steel, construction, agriculture, chemicals and -- most notably -- the coal-dependent electric utilities.  Trends favoring increasing mechanization in Chinese mines will also spur new sales of mining equipment through the forecast period.  In addition, the harsh work environment and limited lifespans of mining equipment will create opportunities for sales of aftermarket parts and attachments, further fueling market gains.  However, the shutting down of small mines for environmental protection and safety reasons, as well as improving efficiency in the downstream consumption of mined products, will dampen mining activity to some extent, leading to a deceleration in demand growth for mining equipment.  Moreover, moderating price increases for mining equipment will further restrain market growth in value terms. These and other trends, including market share and product segmentation, are presented in Mining Equipment in China, a new study from the Beijing office of The Freedonia Group, Inc., a Cleveland-based industry research firm.

Sales of underground mining machinery are forecast to rise 6.4 percent annually to 44.9 billion yuan in 2013, preserving its status as the largest mining equipment segment in China.  However, crushing, pulverizing and screening equipment will see the strongest gains over the forecast period.  Advances will be driven by robust increases in demand for preprocessed mined products and growing domestic consumption of key commodities such as coal, steel, clay and cement.  Surface mining machinery will also achieve fast sales growth through 2013 due to expanding mineral and metal output.

Coal mining will remain the largest equipment market through 2013, benefiting from increasing demand for coal resources as raw feedstock for electricity generation and energy for heating and other industrial uses (e.g., steel production).  However, demand for mining equipment used in metal mining settings will see the strongest gains over the forecast period.  Advances will be stimulated by increasing metal mining activity spurred by rising demand from downstream industries such as steel and nonferrous metals.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.