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Mining Equipment Deliveries Show Modest Gains in Q2 (August 7, 2015)

Total units shipped increased by just 2.5% vs. Q12015. Excluding the value of a single large and very high-value dragline delivered in Q1, the value of shipments (Parker Bay estimate, market level prices, fob manufacturer) also increased by 2%. Considering the severity of the Q1 decline and the magnitude of this latest increase, the result gives little reason for optimism short-term.

By product line, mining truck deliveries (which account for a majority of all shipments) increased by just 6%. If the current shipment rate continues in the second half of 2015, deliveries will fall by roughly 20% vs. the already very weak 2014 total and less than a third of the peak truck shipments achieved in 2012. There was a significant shift in the size of trucks delivered during Q2: units with payloads of 231-mt and greater declined by 11% while those in the 90- to 190-mt range increased by 13%. This might reflect the severity of large mining companies’ cuts in capital expenditures as they relate to the very largest developments. But we do not expect this to evolve into a long-term shift away from the higher-capacity units.

Visit the Surface Mining Equipment Index page for more information on the evolution of mining equipment shipments through Q2 2015.