China excavator sales volumes down 30 per cent in September: BofA/ML

STOCKHOLM: The number of excavators sold in China fell by 30 per cent in September year-on-year, according to a note from Bank of America Merrill Lynch on Tuesday.

China's Sany and US heavyweight Caterpillar

were the biggest players in the Chinese excavator market during the month. Volumes at Sany fell 23 per cent while Caterpillar saw a 31 percent drop.

Volumes at Sweden's Volvo fell 34 per cent in the month, while unit sales at its majority-owned unit Shandong Lingong (SDLG) were down 43 per cent.

Volvo's sales volumes of excavators in China have dropped 60 per cent so far this year, while SDLG is down 33 per cent.

Excavator sales in China have declined for several years. In 2014 they fell by 20 per cent on the back of a slowdown in construction. In 2015, excavator sales have dropped 40 per cent.

Volvo cut its forecast for the Chinese construction equipment market in connection with its second-quarter earnings report in July, expecting a drop of 35-45 per cent in 2015.