As a whole, the price increase of small-sized products is more than 10,000 yuan per unit, while the price increase of large-sized products (over 5 tons) is mostly 20,000 yuan per unit. In the notice of price increases, it is generally mentioned that the price of steel and rubber have risen a lot, resulting in a substantial increase in procurement costs. In the construction machinery industry, the previous product price adjustment, the loader is relatively dominant, and has a leading. The main reasons include: the product has early cycle properties, a higher proportion of steel cost, lower gross margin products, changes in the absolute price range is small and easy to be accepted by customers. Industry demand picks up: From January to July 2017, the sales volume of major loaders in China totaled 51,948 units, up 37.0% over the same period of previous year. Downstream loader applications include infrastructure construction, mining, farmland water conservancy, real estate construction and other fixed asset investment projects. Loaders in the project, usually with excavators, bulldozers and other products to form a joint operation, the loaders are characterized by a large amount of earth loading, transfer faster, especially on the heavy truck loaded on a higher efficiency.
 
China's loader sales and growth
 
 
Through the price adjustment, the loader business enjoyed a more favorable profit margin increase due to the elasticity of sales volume during the period from 2009 to 2010 in a good cycle. The gross profit margin in 2010 was generally higher than that in 2009. And into 2011, sales showed high before the low, peaked down trend, the contraction of different enterprises, the direction of its profit margin has changed.
 
 
Since 2017, the sales in the loader industry showed a good growth, and the gross profit margin of the corresponding businesses of major companies has been raised. From the raw material market, the average plate and plate prices reached RMB3,787 / t in July-August 2017, up from the second quarter of 2017 (RMB3,387 / t) and the third quarter of 2016 (RMB2,663 / t) respectively Up 11.8% and 42.2%. Assuming steel procurement equates to 10% of loader sales revenue, if the average purchase price of steel increases by 40-50%, the corresponding cost pressure will need to be adjusted by 4 ~ 5% of loader price to be digested. Loader by the average unit price of 200,000 yuan calculation, the actual needs of the corresponding increase of about 10,000 yuan.
 
Change in gross profit margin of loader companies