Recent Events

New Cyclical Low in Mining Equipment Deliveries Q3 2015 (November 11, 2015)


The mining equipment sector failed to hold the small gains recorded in the second quarter, falling to new cyclical lows in Q3 2015.  The market was down more than 5% in unit deliveries and around 9% in equipment value, reflecting a greater decline in the larger size classes.  This constitutes barely a fourth of the equipment shipped in the first quarter of 2012 when the market peaked.  While there may be minor revisions in the coming months, it is unlikely to raise the reported total by more than a few percentage points if that.

No geographic market has been spared the downturn, but areas such as Asia, Australia and Latin America that saw the largest growth in machine populations throughout the minerals super cycle have been hit particularly hard.  Many of these mining markets now have surplus capacity that is no doubt suppressing new machine deliveries and will continue to do so at least in the short term.

Though we believe that we’re seeing the bottom of the current contraction, it appeared that way a year ago before mineral markets deteriorated further and the small uptick in shipments reversed course.  Though mineral markets aren’t expected to recover substantially in the near future, replacement demand will drive new deliveries higher as the market works through the surplus stock of equipment and miners are forced to replace machines that are already beyond their typical service life.  Parker Bay’s “Market Analysis and Forecast Loading & Haulage Equipment” report analyzes the changes in the mining equipment market and forecasts equipment demand through 2020.  The full report will be published in the coming weeks.

Visit the Surface Mining Equipment Index page for more information on the evolution of mining equipment shipments through Q3 2015.