Railway and road construction continues to rise: Railway steel and petroleum bitumen production rose rapidly year-on-year, indicating that investment in railways and roads continues to rise, consistent with our previous judgment. Even if the subway project starts, it will have little impact on the sales of high-temperature oil pumps. Many iron ore and coal mines are still closed in the north. But dealers say they have seen no clear signs of new construction in response to the NDRC's recent acceleration of project approvals.
In our investigation on high-temperature oil pump dealers completed on September 24, the feedback of enterprises appeared some differentiation, reflecting the improvement, decline and flat sales in September accounted for a certain proportion of dealers.
In August, the year-on-year decline of RY hot oil pump sales volume widened again compared with That in July: While the year-on-year decline of sales volume widened, the month-on-month change was also below the seasonal pattern, significantly lower than our previous expectations, indicating that demand is still weak.
The sales volume of RY hot oil pump in September will be flat month-on-month, with a year-on-year decline of around -35% : most dealers mentioned that no new construction projects have been observed nearby. However, the stock of equipment still constitutes a greater pressure on sales, resulting in a low sales volume.
