--- title: "Excavator prices are collectively rising! Sany, XCMG, and LIUGONG take the lead, supported by strong domestic and foreign demand, boosting industry prosperity" type: "News" locale: "en" url: "https://longbridge.com/en/news/286483519.md" description: "Since May, due to rising raw material prices and high industry prosperity, leading construction machinery companies such as Sany, XCMG, and LIUGONG have successively announced a price increase of 3%-5% for excavators. This is the first large-scale collective price adjustment in the industry in three years, and analysts believe it will promote the industry's transformation towards healthy competition. Companies will adjust their pricing strategies in a timely manner based on market changes to cope with the challenges of the market in the second half of the year" datetime: "2026-05-15T00:03:08.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286483519.md) - [en](https://longbridge.com/en/news/286483519.md) - [zh-HK](https://longbridge.com/zh-HK/news/286483519.md) --- # Excavator prices are collectively rising! Sany, XCMG, and LIUGONG take the lead, supported by strong domestic and foreign demand, boosting industry prosperity This report (chinatimes.net.cn) reporter Li Beibei reports from Shanghai Since May, driven by rising raw material prices and high industry prosperity, leading construction machinery companies such as Sany Heavy Industry (600031.SH), XCMG (000425.SZ), LIUGONG (000528.SZ), and Shantui (000680.SZ) have successively issued price increase notices for excavators, with an increase of 3% to 5%, which will be implemented gradually from mid-May to early June. Regarding the transmission rhythm of this price increase and the extent of gross margin improvement, reporters from the China Times have repeatedly called the aforementioned companies, but as of the time of publication, no contact was made. Industry analysts pointed out that this price increase marks the first large-scale collective price adjustment in the industry in nearly three years, and the competitive landscape is expected to shift towards healthy value competition. Jiang Han, a senior researcher at Pangu Think Tank, told reporters that raising prices at this time can adjust prices after the peak sales season, reducing the direct impact on sales, while leaving room for subsequent market strategies to ensure that companies can better respond to market changes in the second half of the year. As an upstream enterprise in the construction machinery industry, Qiu Yongning, general manager of Hengli Hydraulic, responded to reporters' questions during an online performance briefing held on the afternoon of May 14, stating that the company will continue to track the trends of upstream raw material prices, changes in downstream market demand, and overall industry pricing dynamics, and will "adjust product pricing strategies in a timely and reasonable manner" based on its own product competitiveness and cost structure. **Rising Costs as the Core Incentive** Since May, leading domestic construction machinery companies have launched a wave of concentrated price increases. On May 1, Sany Heavy Industry's Sany Heavy Machinery announced that starting from May 15, it would raise the prices of its excavator products by 5%. Previously, Sany Group's subsidiaries had optimized product pricing multiple times, such as the 3% to 5% price increase for concrete machinery (pump trucks, mixer trucks, mixing stations) by Hunan Sany Pump Road Machinery Company at the beginning of the year. On May 8, LIUGONG's wholly-owned subsidiary, Liuzhou LIUGONG Excavator Co., Ltd., issued a price adjustment notice, announcing a 5% price increase for excavator products starting from May 20. On the same day, XCMG's wholly-owned subsidiary, Xuzhou XCMG Excavator Co., Ltd., also announced a price increase of 3 to 5 percentage points for different models starting from June 1; on May 14, Shantui Construction Machinery Co., Ltd. also issued a notice regarding the price increase of Shantui excavator products, announcing a price increase of 3% to 5% for different models starting from June 1. The reasons for the price adjustments by multiple companies are consistent, all stating that the prices of bulk raw materials such as steel and oil continue to rise, coupled with increasing labor costs, putting significant pressure on main engine manufacturers and upstream and downstream suppliers, with cost pressures continuing to expand. For example, as of the end of April, the national comprehensive steel price reported by Lange Steel was 3,579 yuan/ton, an increase of 60 yuan/ton compared to the same period last month, with a month-on-month increase of 1.7% and a year-on-year increase of 0.4% From a monthly average perspective, the national comprehensive price of steel in April was 3,533 yuan/ton, an increase of 35 yuan/ton from the previous month, with a growth rate of 1.0%. Century Securities analysis believes that this round of price increases is driven by multiple factors. In addition to rising prices of raw materials such as steel, copper, aluminum, rubber, and hydraulic components, the industry demand is sufficiently resilient, with smooth price transmission conditions. At the same time, leading international construction machinery companies have initiated price adjustments, and domestic leading manufacturers have followed suit. According to public information, Caterpillar added a surcharge of 3%-5% on some models in March and plans to implement a second round of price increases of 4%-7% in July; Komatsu also raised the prices of excavators and loaders in February by 7% and 8%, respectively, and confirmed a uniform price increase of 5% for the entire series of construction machinery in August. At the same time, the strong demand side provides fundamental support for price increases. Guojin Securities research report points out that excavator sales in the first quarter of 2026 are expected to reach 73,300 units, a year-on-year increase of 19.5%, with exports increasing by 36.1% year-on-year; coupled with the fact that peak equipment from 2019 to 2021 has entered an 8-10 year replacement cycle, it is expected that a peak in replacements will occur from 2025 to 2028, with "both domestic and foreign demand supporting sustained strong demand." Under the tight balance of supply and demand, leading enterprises are the first to raise prices, which is expected to be transmitted throughout the entire industry chain, directly promoting the recovery of industry profitability. In addition, after undergoing industry cycle adjustments, the construction machinery industry has seen the continuous elimination of backward production capacity, with market resources accelerating towards leading enterprises. The market shares of leading companies such as Sany, XCMG, and LIUGONG have steadily increased, significantly enhancing the industry's bargaining power and pricing autonomy. The research report from GF Securities also points out that the recent price increase of excavators is mainly influenced by the rising prices of upstream raw materials, "but essentially reflects the continuous recovery of domestic excavator demand and the ongoing enhancement of domestic manufacturers' competitiveness." Huatai Ruisu's research report indicates that the core driving force behind this round of price increases is the leading enterprises seeking healthy and sustainable development against the backdrop of rising costs: "We believe that a 5% price increase is expected to offset the rise in bulk raw materials such as steel, copper, and aluminum since the beginning of the year." At the same time, "the statements from leading companies also indicate that the industry is expected to shift from 'price for volume' to 'value competition,' breaking the market's expectations of continued deflation in the industry." **The construction machinery market is expected to continue to improve** Interviewees believe that under the multiple backgrounds of high raw material prices, optimized industry competition patterns, and international leading price adjustments, this round of price increases is reasonable and sustainable, which will effectively boost the gross profit margins of manufacturers, and the industry is expected to usher in a favorable development trend of "simultaneous increase in volume and price." The research report from Century Securities also states that domestic leaders are following the price increases, and the industry competition is shifting from price wars to sustainable value competition: "We believe that under the high prices of raw materials, optimized industry patterns, and international leading benchmarks, price increases have a foundation and sustainability, which will boost corporate gross profit margins, and we continue to be optimistic about the upward trend of the industry." Leading enterprises also hold an optimistic attitude towards the medium and long-term development of the industry. For example, Sany stated that in 2026, the construction machinery market is expected to continue to improve In the domestic market, demand for infrastructure investment, new urbanization, mining, and water conservancy projects will be further released under policy support. Coupled with the gradual implementation of ultra-long-term special government bonds and localized debt funds, the market is expected to accelerate its recovery. The increase in the penetration rate of new energy and intelligent products will stimulate a huge demand for replacement and upgrades, further driving industry growth. In the overseas market, global infrastructure and mining investments maintain a high level of prosperity. Chinese engineering machinery manufacturers are achieving a dual leap in global market share and brand value through "localization" of global layout and technological innovation. The upward trend in industry prosperity has also driven revenue growth for related listed companies. However, it is important to note that the net profit growth of leading enterprises is under pressure due to exchange rate fluctuations in overseas businesses. In terms of revenue, in the first quarter of 2026, Sany Heavy Industry led with a revenue of 24.042 billion yuan, a year-on-year increase of 14.22%; XCMG achieved a revenue of 29.791 billion yuan, following closely with a year-on-year increase of 9.26%; Zoomlion achieved a revenue of 12.952 billion yuan, a year-on-year increase of 6.89%. However, during the same period, the net profit growth of major leaders showed significant weakness. In terms of net profit attributable to shareholders, in the first quarter of this year, Sany Heavy Industry reported a profit of 2.481 billion yuan, a slight increase of 0.46% year-on-year; XCMG reported a profit of 2.056 billion yuan, a slight increase of 0.86% year-on-year; LIUGONG reported a profit of 606 million yuan, a year-on-year decline of 7.78%. The main reason for this is that exchange rate fluctuations have become a major factor dragging down corporate profits. For example, Zoomlion's financial expenses surged by 673.65% year-on-year in the first quarter, which the company attributed to "foreign exchange gains and losses impact"; XCMG's financial expenses surged by 746.54% in the first quarter, also due to "exchange rate changes during the reporting period." In response to exchange rate risks, major leading enterprises have implemented targeted risk control measures. For instance, Zoomlion stated that the company incorporates currency and exchange rate fluctuation management costs into comprehensive considerations during the business quotation phase, while optimizing the overall currency structure of overseas businesses for natural hedging. Additionally, it will further strengthen accounts receivable management, increase the proportion of full payments and third-party financial settlements, and reduce foreign exchange exposure; further enhance the hedging strategy for foreign exchange exposure derivatives, and increase localization rates to reduce foreign exchange exposure from the source. XCMG also stated that in 2026, the company will continue to strengthen exchange rate control. At the strategic level, it will accelerate the improvement of localization rates at overseas manufacturing bases; at the trade level, it will prioritize settlement in RMB and reserve currencies, standardize contract quotations, and strictly control financial risks; at the financial level, it will choose the right time to carry out cash flow and financial statement locking, comprehensively reducing exchange rate exposure ### Related Stocks - [600031.CN](https://longbridge.com/en/quote/600031.CN.md) - [000425.CN](https://longbridge.com/en/quote/000425.CN.md) - [000528.CN](https://longbridge.com/en/quote/000528.CN.md) - [06031.HK](https://longbridge.com/en/quote/06031.HK.md) - [560280.CN](https://longbridge.com/en/quote/560280.CN.md) - [159542.CN](https://longbridge.com/en/quote/159542.CN.md) - [000680.CN](https://longbridge.com/en/quote/000680.CN.md) - [601100.CN](https://longbridge.com/en/quote/601100.CN.md) - [CAT.US](https://longbridge.com/en/quote/CAT.US.md) - [6301.JP](https://longbridge.com/en/quote/6301.JP.md) - [KMTUY.US](https://longbridge.com/en/quote/KMTUY.US.md) - [000157.CN](https://longbridge.com/en/quote/000157.CN.md) - [01157.HK](https://longbridge.com/en/quote/01157.HK.md) - [600109.CN](https://longbridge.com/en/quote/600109.CN.md) - [000776.CN](https://longbridge.com/en/quote/000776.CN.md) - [01776.HK](https://longbridge.com/en/quote/01776.HK.md) - [601688.CN](https://longbridge.com/en/quote/601688.CN.md) - [06886.HK](https://longbridge.com/en/quote/06886.HK.md) - [HTSC.UK](https://longbridge.com/en/quote/HTSC.UK.md) ## Related News & Research - [Sany Heavy Industry to Unify Reporting Under CASBE and Proposes Ending EY H-Share Audit Mandate](https://longbridge.com/en/news/290707239.md) - [Sany Heavy Industry Calls 2026 EGM to Vote on ESOP, Director Pay and Auditor Change](https://longbridge.com/en/news/290720734.md) - [20:21 ETSANY Ships Core Equipment for First Wind Project in Latin America, Advancing Global Energy Transition](https://longbridge.com/en/news/290119626.md) - [16:44 ETEntwickelt für die Praxis: XCMG stellt auf der CONEXPO 2026 erstmals eine Bagger-Baureihe für Nordamerika vor](https://longbridge.com/en/news/278614033.md) - [12:27 ETXCMG Secures Over $1 Billion in Orders at 8th International Customer Festival, Expanding Global Partnerships](https://longbridge.com/en/news/288096889.md)