Infrastructure construction has gathered pace across China as the government ramped up funding to spur investment in the sector following basic containment of the novel coronavirus outbreak.
Data from China Construction Machinery Association showed excavator producers reported record sales in March as production resumption accelerated nationwide.
Total excavator sales, an indicator of the vitality of an economy as demand is usually backed by growth in mining and infrastructure development, hit a record high of 49,408 in March 2020, up 11.6% year-on-year.
The industry data, which suggests a rebound in activities, was in line with the excavator index tracked by construction gear maker Sany Heavy Industry Co., Ltd. that showed infrastructure construction had recovered to the average level seen in 2019 since March 20, 2020.
In another sign of recovery, production and prices of construction materials, including cement and steel, saw visible climbs. Data from the Ministry of Industry and Information Technology showed work resumption rate of the cement industry reached 94% as of April 6.
Transactions on the steel market became more active, with daily transactions reaching 238,000 tonnes in early April from 127,000 tonnes in early March, data from industry information provider mysteel.com revealed.
“Demand in the construction industry has basically recovered to last year’s level driven by new and resumed projects,” said Xu Xiangchun, an analyst with mysteel.com.
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