Dear Customers,
The Chinese leading machinery manufacturers have successively announced price increases. We believe prices across the entire related supply chain will rise very soon. Please get prepared and act quickly to secure the last wave of profits before the price hikes take effect. Below is a Sina Finance news report for your reference:
Since May, driven by the dual forces of rising raw material costs and high market prosperity, construction machinery industry giants such as Sany Heavy Industry, XCMG Machinery, Liugong, and Shantui Construction Machinery have successively issued notices to raise excavator prices. The price increase ranges from 3% to 5% and is scheduled to take effect sequentially from mid-May to early June.
On May 1, Sany Heavy Equipment (under Sany Heavy Industry) announced that starting from May 15, the prices of its excavator products would be raised by 5%. Prior to this, enterprises under the Sany Group had already optimized their product pricing multiple times. For instance, at the beginning of the year, Hunan Sany Pump & Road Machinery Co. raised the prices of concrete machinery (pump trucks, mixer trucks, and batching plants) by 3% to 5%.
On May 8, Liugong's wholly-owned subsidiary, Liuzhou Liugong Excavator Co., Ltd., issued a price adjustment notice, announcing a 5% price increase for its excavator products effective May 20. On the same day, XCMG Machinery's wholly-owned subsidiary, Xuzhou XCMG Excavator Machinery Co., Ltd., also announced a 3% to 5% price increase for different models, effective June 1.
On May 14, Shantui Construction Machinery Co., Ltd. released a "Notice on the Price Increase of Shantui Excavator Products," announcing a 3% to 5% price hike for different models starting from June 1.
The reason for the price adjustments by these companies is consistent. All stated that the continuous upward trend in the prices of bulk raw materials, such as steel and oil, coupled with rising labor costs, has put significant pressure on original equipment manufacturers (OEMs) and suppliers across the upstream and downstream, leading to continuously expanding cost pressures. Taking steel as an example, by the end of April, the comprehensive national steel price was 3,579 yuan/ton, an increase of 60 yuan/ton from the same period last month, representing a month-on-month increase of 1.7% and a year-on-year increase of 0.4%. In terms of the monthly average, the national comprehensive steel price averaged 3,533 yuan/ton in April, an increase of 35 yuan/ton from the previous month, with a growth rate of 1.0%.
Source: Sina Fiance