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For Mining Equipment Markets Worldwide: The Worst May Be Over.  (November 11, 2014)

PBCo-Surface-Mining-Equipment-Index2

After two and a half years in decline, the mining equipment market turned up slightly in the third quarter.  Unit deliveries were 12% higher than 2Q though the increase on a value-weighted basis was less than half a percent.  As can be surmised, shipments of the very largest machines continued downward for the most part with growth coming from the smaller size classes.  Larger equipment classes typically lag some months behind in the cycle so increasing value as well as unit volume could characterize coming quarterly deliveries.

Deliveries to copper mines were down nearly 50% from 2Q to 3Q after faring best among mineral classes through the downturn through June.  While coal and gold mines, where equipment deliveries fell more than 80% in the past two and a half years, both appear to have bottomed out or even turned up slightly.  Replacement demand is likely a major factor in recent quarters with no new operations taking equipment in 3Q.  While the need to replace the growing number of older units could boost deliveries further, stronger mineral market conditions will be needed to drive a healthy recovery.

Visit the Surface Mining Equipment Index page for more information on the evolution of mining equipment shipments through Q3 2014.

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