Panoramic analysis of the development of China's mining machinery industry in 2022

First, mining machinery industry overview

1. Definition and classification of mining machinery

Mining machinery is a special equipment for mining and processing solid minerals and stone, mainly including well construction equipment, mining and drilling equipment, mine lifting equipment, crushing and grinding equipment, screening and washing equipment five categories. Mining machinery serves many important basic industrial sectors such as ferrous and non-ferrous metallurgy, coal, building materials, chemical industry, etc. The sand and stone aggregates produced and processed are widely used in the construction, transportation, water conservancy and other infrastructure construction fields. Therefore, mining machinery reflects the level of scientific development and comprehensive utilization of national mining resources to a certain extent, and has an important impact on the development of the national economy.

2, mining machinery industry chain

The upstream products of mining machinery manufacturing industry are mainly steel, large castings, motors, bearings, frequency converters, plates, profiles, etc., of which large castings, steel, profiles and other parts with steel as raw materials account for the total cost of raw materials is higher, so the steel industry has a greater impact on the industry.

Mining machinery downstream application field is more extensive. With the continuous advancement of China's industrialization and urbanization construction and the continuous investment in infrastructure construction such as construction, transportation and water conservancy, the demand for stone and solid minerals in basic industries such as sand and stone building materials, metallurgy and coal continues to grow, which has led to the rapid development of the mining machinery market.

(1) Upstream steel industry development analysis

Steel is an essential material for national construction and the realization of the four modernizations, and it is widely used and has many varieties. China is the world's largest steel producer. In 2022, the country produced 1.013 billion tons of crude steel, down 2.10% year on year; 864 million tons of pig iron was produced, down 0.80% year-on-year; It produced 1.340 billion tons of steel, down 0.80% year-on-year.

In recent years, affected by the national macroeconomic regulation and economic cycle, the domestic steel market price has rebounded since 2016, and the overall market has shown a shock rise. Especially after the outbreak of the new coronavirus, the supply structure of global commodities and materials has undergone major adjustments, and the changes in the supply and demand relationship have led to a significant rise in the market price of steel in the second half of 2020 and remain high, and the fluctuations in steel prices have made relevant enterprises face the challenge of whether they can effectively transfer production costs.

On the whole, the direct upstream industry of mining machinery belongs to the market highly mature industry, the production technology is more stable, the supply is more adequate, and the product quality meets the needs of the industry, so the raw materials and parts procurement needs of the industry can be fully guaranteed, and there is no upstream supply shortage affecting production. In addition, the upstream industry is a typical perfect competition industry, with low conversion cost, fierce competition in the industry, stable supply, bargaining power is not high, so mining machinery enterprises have a certain bargaining power for the upstream supply chain, which provides an important guarantee for their own cost management.

(2) Development analysis of downstream mining industry

Affected by the rising prices of international energy and major mineral products, as well as the policy of ensuring supply and stable prices of important raw materials and primary products such as coal and iron ore, China's fixed asset investment in the mining industry has continued to grow, and it has also boosted the enthusiasm of private enterprises to invest in the mining industry.

Fixed asset investment in mining continued to grow. In 2022, fixed asset investment in China's mining industry continued the trend of growth in 2021, increasing by 4.5% year-on-year. In the mining industry, investment in fixed assets, affected by the energy and important livelihood commodities guarantee policy, in 2022, the coal mining and washing industry, the ferrous metal mining industry fixed assets investment increased significantly, up by 24.4% and 33.3% respectively; Fixed asset investment in non-metallic and non-metallic mining and selection industries also grew by more than 8%, up 8.4% and 17.3%, respectively.

Affected by factors such as the repeated domestic COVID-19 epidemic and insufficient market demand, the growth rate of some mineral products has slowed down or decreased, but from the perspective of the whole year, the production of mineral products is generally stable. In 2022, the production of other major mineral products continued to grow, except for the reduction in the output of minerals related to infrastructure construction such as crude steel and cement.