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Home>>news>>Market Analysis of Used Excavators in Shenzhen

Market Analysis of Used Excavators in Shenzhen

Tags:2014-02-20

In 1998, a few people of Hong Kong took a fancy to the second-hand construction machinery leasing market of Shenzhen. They took a collection of used construction machinery such as excavators and bulldozers from Hong Kong to begin their construction machinery rental business. Then they changed their business model, from rental to resell used construction machinery. The two biggest used construction machinery companies in Shenzhen are founded in 1999 and 2002 respectively. Their business scope includes domestic business, material supply and marketing, technology development of electronic products and machinery equipment, import and export business, etc.

Source of used excavators
Several years ago, used excavators entered into China on a large scale. According to the customs statistics, the quantity of used excavators equals the sales number of new ones. On the used excavators' trading market, in addition to Carter's machine, basic it is Japanese brands such as Komatsu, Hitachi, etc. The main reason is most of the supplies of China's used excavators are coming from Japan. Japan is the biggest exporting country of used excavators. It has formed a stable supply of used excavators. The main source is eliminative equipment of leasing company. Japan's construction machinery rental business is very developed. The rental rate of construction machinery equipment in engineering construction stays 70 percent. In some leasing companies, equipment used in 5000~6000 hours will flow to the second-hand equipment market. These will become the mainstream products of second-hand market.

Development scale
The current inventory quantity of used excavators in Shenzhen is 50000 units. The total sales amount in 2010 is 100000 units. The turnover is about 100 billion RMB. 6000 of them are sold to Guangdong, the turnover is about 3.6 billion. From 2008 to 2010, the sales number of new excavators of Guangdong is 900, 1200 and 2500 units respectively. It is far less than the sales number of imported used ones.

With the development and accumulation of Chinese construction machinery industry, China has gradually formed its own inner loop of used excavators. On the one hand, some agents start to try the replacement business. Old ones return to the market once again through maintenance and renovation. On the other hand, the private transactions include a small-scale circulation of the same area and a large scale circulation of areas among different provinces. The inner loop of Chinese used excavators has gradually formed and developed. One of the important reasons is business of used excavators is very good and there is no big growth in the quantity of imported used excavators in recent years.