Since 2026, the output of steel for construction machinery has continued its year-on-year decline, reflecting industry players' cautious expectations for downstream demand. According to statistics from the China Iron and Steel Association, in April, the monthly output of steel for construction machinery from 35 key domestic steel enterprises was 670,000 tons, a 3.8% increase month-on-month, but a significant 20.9% decrease year-on-year, indicating that the industry is still in a critical stage of capacity reduction and structural adjustment. Looking at cumulative data, from January to April, the cumulative output of steel for construction machinery was 2.65 million tons, a 13.6% decrease compared to the same period last year. Low-end ordinary construction steel capacity continues to be cleared, while the proportion of high-strength steel, wear-resistant steel, and other high-end products is steadily increasing, accelerating the optimization of the industry's supply structure.

Downstream industry data is relatively bright. According to statistics from the China Construction Machinery Industry Association, in April 2026, 28,745 excavators of various types were sold, a year-on-year increase of 29.8%, of which 16,920 were sold domestically, a year-on-year increase of 34.9%, and 11,825 were exported, a year-on-year increase of 23.2%. Loaders also performed strongly, with 15,432 loaders of various types sold in April, a year-on-year increase of 32.4%. Domestic sales reached 8,411 units, a year-on-year increase of 17%, while exports reached 7,021 units, a significant year-on-year increase of 57.4%, with export growth far exceeding domestic sales.

Looking at cumulative data, from January to April, a total of 102,081 excavators were sold, a year-on-year increase of 22.2%. Domestic sales reached 56,499 units, a year-on-year increase of 15%, while exports reached 45,582 units, a year-on-year increase of 32.5%, with export growth approximately twice that of domestic sales. From January to April, cumulative loader sales reached 53,757 units, a year-on-year increase of 27.3%, with exports accounting for nearly half. The continued strong production and sales data for excavators translates into actual steel consumption. In April alone, excavators required 382,300 tons of sheet metal, a year-on-year increase of 29.82%. As a significant downstream sector for steel consumption, the construction machinery industry accounts for approximately 15% of total steel demand, and its demand changes directly impact the supply and demand balance of the steel market.

From the perspective of construction machinery operating rates, the operating rate has rebounded for two consecutive months, strongly confirming the steady increase in downstream construction intensity. According to statistics from the China Construction Machinery Industry Association, the monthly operating rate of major construction machinery products in April 2026 was 53.4%, an increase of 2.84 percentage points month-on-month; the average monthly working hours were 78.2 hours, an increase of 10.9% month-on-month. Among them, the excavator operating rate reached as high as 57.1%, setting a new record for the year. From the demand side, the continued strong performance of funds for "new" equipment upgrades throughout the year, along with the gradual implementation of projects such as mining, major water conservancy projects, and high-standard farmland construction, has supported the overall demand for construction machinery, thereby continuously driving demand for medium and heavy plates and high-strength steel. From the supply side, the output of major plate varieties has seen varying year-on-year changes, with a significant decrease in the output of construction machinery steel plates. The short-term supply-demand imbalance has provided strong support for steel prices.

The export performance was particularly impressive. According to data from the General Administration of Customs, my country's construction machinery exports reached 39.871 billion yuan in April 2026, with cumulative exports from January to April reaching 152.308 billion yuan, a year-on-year increase of 17.5%. In April, excavator exports achieved sales of 7.167 billion yuan, a year-on-year increase of 17.97% and a month-on-month increase of 1.72%, indicating continued strong performance in overseas markets. The high growth in construction machinery exports directly drives the upgrading of demand for high-end steel, forcing steel companies to optimize their product structure and upgrade towards higher strength, higher toughness, and corrosion resistance. The application of high-strength steel, wear-resistant steel, and other specialty steels in construction machinery is continuously expanding, with tensile strength requirements gradually upgrading from 600MPa to 780-1180MPa. The annual growth rate of high-strength steel has consistently remained above 8%.

Overall, the construction machinery industry in 2026 exhibits a positive trend of "domestic demand recovery, high export growth, and increased operating rates," and the demand for medium and heavy plates, high-strength steel, and wear-resistant steel will continue to be released. Although the cumulative output of steel for construction machinery declined year-on-year from January to April, strong sales growth and a continued recovery in operating rates are accelerating the transmission to the procurement side. In the short term, although output remains low year-on-year, marginal improvements in downstream machine sales, exports, and operating rates will gradually drive a recovery in steel demand. In the long term, the industry's trend towards high-end, lightweight, and green development remains unchanged. Low-end ordinary construction steel capacity will continue to be cleared, while the demand for high-end products such as NM400 wear-resistant steel and high-strength steel will steadily increase. Expansion into overseas high-end markets and the popularization of new energy construction machinery will continue to open up incremental space for high-end steel consumption.