Construction Machinery: Emerging markets are eye-catching but risk remains

In May, Liugong exported 85 large-scale excavators to West Africa for shipment and shipment, completing another big list of Liugong in emerging markets this year;

From May 29th to June 2nd, at the 8th International Construction Machinery Expo and the 6th Mining Machinery Exhibition in Brazil, China’s construction machinery companies such as Sany Heavy Industry, Zoomlion, Shanhe Intelligence, and Ward Heavy Industry made great efforts again. In the five-day exhibition, Sany-Brazil confirmed 64 orders with a turnover of more than US$20 million; Zoomlion’s excavation machines and truck cranes turnover also amounted to nearly US$10 million. Sanhe’s intelligence and Ward’s Heavy Industry won similarly. Feng.

According to the statistics released by the General Administration of Customs, China’s export of electromechanical products accounted for more than 60% in May, especially in emerging market expansion. From January to May, Russia’s export volume increased by 25%, South Africa increased by 32%, Brazil increased by 10%. Indonesia increased by 20%. This phenomenon shows that developing countries are less affected by the European debt crisis, and the market has great potential in terms of infrastructure construction and energy development.

However, despite the buoyant emerging markets, in absolute terms, it cannot replace the European and American countries in the short term. According to report, in the first five months of this year, although China’s bilateral trade with Russia and Brazil grew faster, the trade volume was only about one-seventh that of the traditional market.

In addition, the risk factors in emerging markets cannot be ignored either. Brazil is affected by inflation, high interest rates have continued, and Russia over-reliance on energy, once the decline in international oil prices, or the spread of debt crisis in Europe, may cause no small impact on its economic development.