Global demand for cement and concrete machinery heats up

Release time:

Jun 24,2013

With the advent of infrastructure construction in various countries and the global demand for cement, the market demand for concrete machinery, concrete transport vehicles and other related construction machinery will increase greatly. Chinese enterprises will occupy the main force in the global concrete machinery market, and Chinese related enterprises will be profitable. Zambia's infrastructure has led to a sharp increase in cement demand with the start of many infrastructure projects. However, due to some of the government's policy stimulus, leading to its domestic cement prices skyrocketed. It was learned from a report in the Zambian media on May 20 that the price of cement in the Zambian country has skyrocketed, especially after the increase in fuel prices.

With the advent of infrastructure construction in various countries and the global demand for cement, the market demand for concrete machinery, concrete transport vehicles and other related construction machinery will increase greatly. Chinese enterprises will occupy the main force in the global concrete machinery market, and Chinese related enterprises will be profitable.

Zambia Infrastructure Increases Demand for Cement

With the start of many infrastructure projects, Zambia's demand for cement has soared. However, due to some of the government's policy stimulus, leading to its domestic cement prices skyrocketed.

According to reports in the Zambian media on May 20, the price of cement in Zambia has skyrocketed, especially after the rise in fuel prices. Previously, the price of 50kg bagged cement was KR55 (about 66 yuan), and now the price is between KR70-KR78 (about 84 yuan to 94 yuan). Rising cement prices have kept the country's construction costs increasing.

According to the report, the main reason for the increase in cement prices was the cancellation of fuel subsidies by the government and then the cancellation of corn subsidies, which caused the increase in commodity prices.

There are many major projects nationwide in Zambia, such as the Lusaka LevyJunction project at 680 billion yuan (Zambian currency), the Freedom Park shopping center project at Kitwe at 0.16 billion US dollars, and so on. In addition, many expansion projects in the mining industry are in full swing. The Zambian government will launch an ambitious construction plan, named "Paving the 2000 of Zambia". According to the plan, the government will invest in 150 billion (Zambian currency) to develop Zambia's nationwide inter-city road construction.

Due to large-scale infrastructure construction, the demand for cement in Zambia is increasing. Chinese cement companies with a keen sense of smell have already heard of the business opportunities and have invested in the construction of cement plants in Zambia. According to media reports last year, the Chinese private company Cathay Steel plans to invest US $0.2 billion to build a new cement plant in Zambia. The person in charge of the company said that Zambia's construction industry is developing rapidly and the demand for cement is huge. His company will invest US $0.2 billion to build a new cement plant in Ndola.

Saudi Arabia large-scale development of infrastructure construction cement demand increased

Due to the large-scale development of infrastructure construction in Saudi Arabia in recent years, the demand for cement has increased significantly. In 2013, the total demand for cement in the country was about 5500 tons, of which 10 million tons were planned to be imported.

In the next 3 years, 3-4 more cement plants will be built to expand production. It is estimated that by 2017, Saudi Arabia's annual cement production will reach 80 million tons, an annual growth of 9.4. At present, the price of Saudi cement is at a low level in the world, about 20 riyals (about $5) per standard bag.

Jordan invests $0.34 billion in water conservancy construction

Recently, the Jordanian Ministry of Water Resources stated that the government has allocated a total of US $0.34 billion for the construction and restoration of water infrastructure across the country. A spokesperson for the Ministry of Water Resources said that with the help of some state aid funds, the government will also renovate water pumping stations, sewage treatment plants, water supply networks and other water conservancy infrastructure this year to improve Jordan's water supply capacity and alleviate the influx of Syrian refugees. Pressure. Among them, the German Development Bank provided 3.8 million US dollars in aid funds for the northern Jordan water renovation project.

The influx of more than 600000 Syrian refugees has exacerbated Jordan's water crisis. Data show that the future water shortage will reach 0.4 billion cubic meters.

Brazilian government actively promotes infrastructure construction

Cristino, Minister of the Port Secretariat of the Presidential Palace of Brazil, said in an interview with Brazilian radio that the introduction of Provisional Act No. 595 is a milestone for the country's economic growth.

Minister Cristino said that the Brazilian government expects to invest about 200 billion reais to build a national logistics system, of which 60 billion reais will be used for port construction. 133 billion reais will be used for road and railway construction to improve the port's supporting logistics capacity.

On May 16 this year, the Brazilian Congress and the Federal Senate formally passed the Provisional Act No. 595. The bill aims to promote the modernization of Brazilian ports, reduce port operating costs, attract investment and enhance competitiveness. The new bill provides for port development, bidding, operation and the transformation of private terminals in state-owned ports.

India will usher in the next 5-10 years of construction machinery market outbreak period

According to India's "Twelfth Five-Year" economic plan (2012-2016), India will focus on infrastructure construction in the next five years, and define "construction" as the driving force for economic transformation. In India's 12th five-year plan, India's infrastructure investment is expected to reach $1 trillion in the next five years alone, including roads, railways, urban infrastructure, commercial and residential buildings, ports, electricity, water conservancy facilities, mining, oil, gas and airports. Between 2012 and 2030, India will spend at least 10% of its GDP on infrastructure. In addition, according to statistics, from 2007 to 2015, India put into the construction machinery market funds totaled $40 billion. This means that the next 8 years, about 17% of the annual increase in investment. At the same time, the booming real estate industry in India, the increase of household income and the rapid urbanization process have expanded the middle class in India. The urbanization rate is expected to rise from 28% in 2001 to 40% in 2030.

In the face of growing infrastructure needs, the Indian government allows private companies to participate in the construction of infrastructure. Because of their characteristics in financing, some new financing methods such as BOT (build-own-transfer), BOOT (build-own-operate-transfer), BOLT (build-own-lease-transfer), make many infrastructure construction possible. The Indian government has granted a five-year tax holiday to enterprises undertaking infrastructure construction, which has brought opportunities to the development of the Indian construction machinery and equipment market. Although the needs of the Indian construction machinery market are large, the construction machinery manufacturing industry in India is currently weak due to various factors.

It is understood that only 28% of the local mechanical energy in India is suitable for the domestic market, and it takes at least two years for Indian engineering construction companies to purchase construction machinery locally to be put into use, but it only takes six months to purchase Chinese construction machinery. Therefore, China's construction machinery is more competitive than India's local construction machinery. In addition, Indian construction companies have gradually given up buying construction machinery from major countries such as Germany, Japan, and the United States, because Chinese construction machinery is cheaper than German, Japanese, and American machinery and can be put into use more quickly. It can be seen that India's demand for Chinese construction machinery has increased greatly.

Vietnam Construction Machinery Market Demand

Vietnam is a country with relatively weak manufacturing industry. The whole industry of Vietnam began to accumulate in the early stage with the aid of China and the Soviet Union. Since the 1990 s, enterprises from China, Taiwan, South Korea and Japan have successively invested in Vietnam. Japan mainly invests in the motorcycle industry in Vietnam; Taiwan, China, has more plastic machinery and packaging machinery; South Korea has invested more in the real estate industry, and then some manufacturing industries have entered. Especially in South Vietnam, all manufacturing equipment is imported from abroad.

According to the Vietnamese government's plan, the Vietnamese market will have 160 billion million U.S. dollars of projects to be developed in the next 10 years, including 5000 kilometers of highways, 300 to 400 kilometers of railways and many ports. There will be a lot of private and public sector investment going to these infrastructure projects. The Ministry of Construction of Vietnam stated that overseas investors have also begun to look for more real estate development projects in Ho Chi Minh City, and the government has issued licenses for these similar real estate projects. Vietnam is currently planning a super-large project: Vietnam's national administrative center to move westward. The work is planned to last 40 years in two phases and is expected to cost $90 billion to complete. In addition, there are the construction of the seaport system (estimated investment of US $5 billion), the construction of Longcheng Airport (US $12 billion), the construction plan of the capital (US $60 billion) and the construction of 18 expressways (US $48 billion). Vietnam's infrastructure construction projects are on the rise, and the level of economic development is similar to that of China in the 1980 s. Excavators, bulldozers, graders, road rollers, elevators, tower cranes, concrete mixing equipment, steel structures, truck cranes, piling machinery and other products are urgently needed in construction machinery. At present, Vietnam's demand for machinery and technology is very strong, while Vietnam's local industry is still in its infancy and cannot meet the needs of social development. More than 90% of machinery and equipment rely on foreign imports. However, local construction machinery companies in Vietnam prefer to sign machinery procurement contracts or import contracts with foreign enterprises in view of the lack of confidence in local machinery subscription by consumers in the country. The current development bottleneck of Vietnam's construction machinery industry is not easy to break through, and domestic sales are sluggish, while the annual import of foreign machinery accounts for 50% of Vietnam's total import. For China's construction machinery enterprises, is a rare opportunity for development.

Mongolia Invests Huge Capital Construction Machinery Industry

Housing prices in Mongolia are rising rapidly, in large part because real estate developers rely on high-interest loans from commercial banks for business operations, while the approval process for housing construction projects is protracted and lengthy. this has also become an important reason for the rapid rise in housing prices in the country. According to a recent report by Mongolia's Ulaanbaatar Post, in order to curb the rapid rise in house prices, the Mongolian government and important banks provide high and low-interest soft loans to building materials manufacturers and suppliers. At the same time, the Mongolian government has invested heavily in large-scale infrastructure construction.

Mongolia's construction funds are mainly provided by foreign capital. The project involves the construction of public facilities, roads and railways and other infrastructure construction, the construction of industrial facilities such as mines, electric power, and metallurgy, as well as the construction of microwave communications, water conservancy, and environmental protection.

In addition to floor materials, Mongolia relies on imports for almost all building materials. Imported materials mainly come from China, followed by Russia, Japan, South Korea and other countries. Due to different import channels, the material is uneven and the price disparity is also large.

Mongolia produces and can supply the main timber is wood, sand, gravel, rubble, red brick, some cement, steel and so on. Compared with the domestic price of building materials in Mongolia, the general building materials are 2-3 times that of China, steel and cement are about 1.5-2 times, but the prices of red brick, lime, electrical and other materials are about 3-4 times that of China. However, wood in the country is very cheap, with an average of about 100 yuan per cubic meter of logs.

Largest investment plan in Thai history to be launched soon

The largest investment plan in Thailand's history is about to start. Thai Prime Minister Yingluck revealed in Bangkok on October 5 that the total amount of this plan is as high as 90 billion U.S. dollars and will be mainly used for infrastructure construction projects in the region to meet the expected 2015 The ASEAN Economic Community (AEC) and the Greater Mekong Subregion (GMS), which were completed, need for rapid economic development. Thailand's "Bangkok Post" said that Thai Prime Minister Yingluck Yingluck announced the investment plan in his keynote speech at the Thailand Investment Conference a few days ago. Yingluck said that as the center of ASEAN, Thailand plays an important role in ensuring interconnection within the region. The projects planned by the Thai government include Thailand-Laos high-speed railway and flood prevention and control management in Thailand. Thai government sources also revealed that the investment plan will last for seven years, and the source of funds will mainly rely on credit. Thailand's $90 billion investment plan will undoubtedly provide great opportunities for the current downturn in domestic construction machinery enterprises. The entire Southeast Asian region is crucial for Chinese construction machinery companies.

The rise of Southeast Asian economy construction machinery hot market

The introduction of Thailand's investment plan attracts people's attention, but the market potential of the whole Southeast Asian market is even greater. In 2012, in the face of the European debt crisis and the Spanish real estate bubble, when the entire world economy was coping with the depression, Southeast Asia emerged as a new force. With the continuous launch of infrastructure construction projects such as housing construction, highways, and power stations, the rapid economic growth in Southeast Asia has become a hot spot for China's construction machinery exports.