Coal mines were a key driver of demand for new mining equipment shipments in 3Q16, according to Parker Bay, as it resumed its position as the largest single market for mining equipment, accounting for more than 40% of 3Q16 deliveries.
According to Parker Bay, which tracks shipments of the largest mobile equipment delivered to the largest opencast mines around the world, demand was concentrated in India and Indonesia – both producers primarily of thermal coal – rather than in areas mining metallurgical coal.
“Mines supplying the latter product have not yet been compelled to add new equipment but may be doing so in the near future in response to sharply higher prices and the reopening of mines that had been placed on care and maintenance,” said Parker Bay in a press release.
Parker Bay’s Mining Equipment Index ticked up 6.5% on a US$-weighted basis in 3Q16 compared to the lows of 2Q16. Despite this increase and with further gains in 4Q16, full-year shipments are likely to fall below the already depressed levels of 2015. But there may be some room for optimism, said Parker Bay.
“Combined with other measures of mining market activity, these gains may be the start of an industry recovery,” the market research company said.
Read the article online at: https://www.worldcoal.com/mining/23112016/coal-mines-drive-new-equipment-demand/