The mining equipment market registered its first upturn in two and a half years in Q3, according to figures from Parker Bay Co. Unit deliveries were 12% higher than Q2, though the increase on a value-weighted basis was less than half a percentage point.
In the coal industry, where equipment deliveries fell more than 80% in the past two and a half years, the market seems to have bottomed out – or even turned up slightly, said Parker Bay, with replacement demand likely to be a major factor in steadying the downward trend over recent quarters. No new operations took equipment in Q3.
“While the need to replace the growing number of older units could boost deliveries further, stronger mineral market conditions will be needed to drive a health recovery,” Parker Bay concluded.
Deliveries of the largest mining equipment types – shovels/excavators and mining tucks – continues to remain depressed, dragging down the value of mining equipment sales. “Until orders and deliveries of the biggest machines follow the lead of the smaller equipment, calling an end to the current market malaise in premature,” Parker Bay explained. “But the latest calendar quarter could be the first indication that the worst is over.”
The Parker Bay Surface Mining Equipment Index is taken from data provided directly to Parker Bay from manufacturers worldwide and recoded in the company’s Mobile Mining Equipment Database.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/13112014/world-coal-surface-mining-equipment-market-gains-in-q3-1568/