China's Mining Equipment Demand to Grow 7% through 2013
The demand for mining equipment in China is estimated to increase at an annual rate of 7.1% through 2013 to CPY150.5bn, according to a Mining and Equipment in China study.
The study, carried out by Freedonia Group, projected an increasing demand for mined products from coal-dependent electric utilities and steel, construction, agriculture and chemical industries will foster gains in the mining equipment sector.
An increasing mechanisation in Chinese mines will also lead to a growth in the sales of mining equipment.
Growth in the sector could be delayed, however, as a number of small mines are closed for environmental protection and efforts to improve the efficiency of downstream product consumption could also hinder growth.
The study forecasts that sales of underground mining machinery are projected to rise 6.4% annually to CPY44.9bn in 2013 maintaining itself the largest mining equipment segment in China.
Within underground mining machinery, crushing, pulverising and screening equipments will have the highest gains.
Coal mining is projected to remain the largest equipment market over the forecast period benefitting from growing demand for coal resources as raw feedstock for electricity generation and energy for heating and other industrial uses.