According to the "2018~2023 Market Outlook and Investment Strategic Planning Analysis Report of China Mining Equipment Industry" (hereinafter referred to as the "Report") released by the Forward-looking Industry Research Institute not long ago, the scale of China's mining equipment market maintained a rapid growth trend from 2006 to 2017, with the average annual compound growth rate of industry sales reaching 20%.
Mining equipment refers to mechanical equipment and auxiliary equipment used for mining and washing of all kinds of solid minerals and stone, including well construction equipment, mining drilling equipment, mine lifting equipment, mineral crushing powder equipment, mineral screening washing equipment.
Mine machinery equipment is directly related to our country metal, non-metal and coal resources development and utilization, its advanced and modernization, reflected a national level of industrialization to a certain extent, also decides the level of mine resources scientific development and comprehensive utilization, is important to the development period of national economy. In recent years, our economy develops rapidly, with continuous progress of industrialization and urbanization and continuous investment in infrastructure construction, the demand for coal mine, metal and non-metal mining resources grows continuously, which stimulates the fixed assets investment in mineral mining and mining equipment industry and makes our mining equipment industry develop rapidly.
The report analyzes that the demand for mining equipment in downstream applications will be stable and continuous. The mining equipment is mainly used for mining and enriching beneficiation of coal mines, metallic ores and non-metallic ores, among which metallic ores mainly include iron, copper and aluminum; Coal mines account for the largest proportion. As mining beneficiation operation conditions are generally harsh, the loss of equipment is large, the mining industry has a large and sustainable demand for spare parts, so that the sales of mineral beneficiation spare parts can maintain a certain stability.
At the same time, even if macroeconomic growth slows down and ore prices fluctuate, the impact of total fixed asset investment in the mining industry on the demand for mineral processing spare parts is reduced because the input of fixed assets in the mineral processing process, especially the cost of spare parts, accounts for a very small proportion in the whole mine project operating cost. Therefore, even in the downturn of the industry, the development of mineral processing spare parts can remain stable.
