During May, the excavator market performs better than that of 2009 with the sales volume of 16,000 sets. According to the usual trend, the market will enter low season after June. As for the strong demand on the whole, the monthly sales volume will still keep at a high level in the latter half year of 2010.

The export of excavators increases continuously for 3 months, which is far better than expected under the influence of debt crisis in Europe. In terms of the export environment, as the debt crisis may grow worse, the global investor confidence is further challenged. According to the statistics of General Administration of Customs of PRC, the growth rate is 48.5% in May, much better than the market anticipation.

The sales volume of imported excavators continues to decline, while the market share grows constantly for the 3 months.

During May, the PPI index grows by 7.1% year on year and 0.6% month on month. The price of production materials grows by 8.8% year on year. And the price of raw materials, fuels, and power grow by 12.2% year on year. The price of ferrous metal grows by 10.9%.
This causes more cost pressure.

The CPI index in May grows by 3.1%, which will possibly promote the adjustment of macro control policy.