Mining Equipment Outlook: Second Half of 2019 Looks Positive
The demand growth will mostly be driven by Coal India requirement and also the overall advancement and industrialisation. The mining equipment (ME) growth in India in the first half of 2019 has been relatively muted, between 5-10%. The outlook for
The demand growth will mostly be driven by Coal India requirement and also the overall advancement and industrialisation.
The mining equipment (ME) growth in India in the first half of 2019 has been relatively muted, between 5-10%. The outlook for ME in the second half of 2019 is expected to be positive, however it will be largely contingent on one of India’s largest miner Coal India’s massive equipment ordering plans. Coal India has already floated tenders and is factoring in a 9-12-month period for delivery of these large capacity equipment.
The demand for mining equipment should increase in Calendar Year 2020
Industry believes this demand spike will also include pent-up demand of the past three-four years, when Coal India’s ordering was delayed due to some procurement hurdles. Ratings Agency ICRA corraborated this improved outlook for mining equipment demand will come from coal, quarrying and aggregate for roads.
Industrialisation, Tech Advancements drive demand for mining equipment
The rise in rapid industrialization and technological advancements, urbanization, and rising energy needs has led to increased demand for advanced mining equipment, automated conveyor systems, and more effective crushing machinery.
Growing demand from the coal mining industry due to rising energy demand in the region, especially in India and China, has propelled the demand for mining equipment in the entire Asia Pacific region.
The demand for underground mining equipment is also getting majorly influenced by rise in number of mining activities.
Hemant Mathur, Assistant Vice President, Sales and Marketing at Tata Hitachi, said, “There has been a reasonable growth in the off-highway dumper and mining excavator segments, as these categories have a direct relation with mineral production. Other categories of mining equipment – like dozers, rope shovels, drag lines – have not seen much growth. However, the mining segment is expected to grow in future leading to a healthy growth in the mining equipment space.”
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