The development level of each country in the Middle East market is different, and the corresponding mining crushing industry maturity is also different. Each stage of the market shows different characteristics, so the market development method cannot be the same. According to my survey and comparison of the Middle East quarry market, The Middle East quarry market is divided into cyclical mature markets, stable growth markets, high-speed growth markets. The characteristics of each of these three stages can be summarized as follows:
The supply and demand of the stone market is basically balanced, and the price of stone is reasonable. The market fluctuates cyclically with the domestic economy. The industry has experienced consolidation, but the overall capacity is overcapacity.
The existing crushing equipment has large models, high output and concentrated distribution, and often a mine has multiple quarries.
The technical and operational levels of Middle East quarry market employees are generally high.
The supply of local auxiliary equipment and accessories is complete.
Market demand is extremely strong, and infrastructure investment has seen explosive growth.
The number of production lines in existing stone factories is small, the output is low, and the distribution is not centralized.
The price of stone remains high, the market is in short supply, and most production lines operate 24 hours a day.
Auxiliary equipment and accessories have not yet been supplied locally.
Stable growth market
The stone line is still scattered, but there is a trend of concentration.
A large proportion of new equipment will come from capacity expansion and higher output.
Market demand is still strong, but local competition is fierce and prices are falling.
For equipment suppliers, the transaction cycle becomes longer and customer inspections are strict.
A large-scale supply capacity of auxiliary equipment and accessories has begun to form locally.
Based on the above characteristics, combined with the actual situation of the various stone production areas I have visited in the past few years, I classify the market conditions of several countries in the Middle East as follows:
Mature and stable market: UAE
Stable growth markets: Saudi Arabia, Oman
High-growth markets: Iran, Iraq
Others: Yemen, Kuwait, Qatar, Bahrain, Syria, Lebanon, Jordan
Mature and stable market: UAE
The rapid growth of infrastructure investment in the UAE began in 2003 and has continued for five years of rapid growth. The major stone production areas in the UAE have been spreading all kinds of large and small stone lines. Until 2008, many infrastructure projects were completed and were affected by the financial crisis. , Many projects under construction were suspended midway, causing the industry to suffer a major blow. More than 60% of the stone line was suspended. When we first arrived in Dubai in 10 years, half of the equipment was still suspended. Many of the equipment was even dismantled and sold. The industry has serious production capacity. Surplus, which is why the UAE market has not been taken seriously in recent years. However, due to the impact of the Dubai World Expo and the World Cup in Qatar in recent years, the market has gradually recovered, and the discontinued equipment has restarted, affected by the sudden increase in demand. New equipment, these new production lines have the following characteristics:
- Large output: I have strengthened my visit to the Middle East quarry market in the past few months, and found that the output of all new production lines is relatively large, generally around 500 t/h;
- The utilization rate of second-hand equipment is rising: Among these new stone lines, a large part of jaw crushers are second-hand equipment, which shows that the impact of overcapacity in the past few years still exists, and customers start to pay attention to equipment in new investment. The cost-effectiveness, the secondary crushing is almost the use of Hazmark impact crusher.
- The entire production line is designed and installed by the customer. Only the main machine of the crusher is purchased. Most of the feeder and vibrating screen are manufactured by themselves or purchased in the local market.
Comparing the market characteristics of each stage I summarized at the beginning, through analysis, I can easily conclude that the UAE market has entered a mature market. It is difficult to sell a new production line in such a market, but it is subject to short-term demand. As a result of the increase, the number of new production lines is still gradually increasing. Many stone plants operate 24 hours a day, so there are still certain opportunities. These opportunities and breakthroughs are as follows:
- Domestic demand: The Hazmark impact crusher for secondary and tertiary crushing is very popular in the UAE, so the new production line can only be placed on the jaw crusher, feeder and vibrating screen, and the vibrating screen needs Facing very fierce local competition; the target customer group is mainly positioned at customers that already have production lines, and they all have potential production opportunities;
- Foreign investment: The UAE is the trade and financial center of the Middle East and Africa. Many investment headquarters in neighboring countries and Africa are located in the UAE. Although this piece is not a large proportion of the previous transactions, it has Especially with the restoration of Iran’s nuclear Iraq, this part of the proportion is believed to have a considerable increase.
Stable growth markets: Saudi Arabia and Oman
Although the growth rate of Saudi Arabia and Oman has slowed down, there is still no shortage of growth points in the market. For crushing equipment, Saudi Arabia is mainly the Red Sea Economic Circle, Mecca and Medina Religious Center Economic Circle, Riyadh Political Center Economic Circle and Dammam The oil industry economic circle, as well as the Oman-Saudi railway connection, etc.; Oman is mainly the expansion of the port of Suha, the construction of a highway airport, the drive of Qatar’s demand, the railway connection between Oman and Saudi Arabia, and the in-depth interconnection between Oman and the UAE.
For the milling industry, Saudi Arabia and Oman also have no shortage of growth points. Saudi Arabia is a big oil country. Every year, there are drilling materials needed for mining, such as barite and bentonite. The world’s largest oil company ARAMCO It is also located in Dammam, Saudi Arabia. At the same time, affected by economic growth, the paint and paint industry is in strong demand and gradually localized production. Saudi Arabia’s Yanbu and southern Medina are also rich in high-quality limestone. The northern part of Jeddah and the surrounding area of ??Yanbu are also very rich in quartz sand mines. The demand for mills will also continue to grow; Salalah in Oman has abundant plaster resources, and there are also large limestone resources that are very beneficial to the construction of cement plants. In the future, the demand for mills will inevitably be concentrated around Salalah;
What kind of development trends and characteristics will the market enter into a period of stable growth? I refer to the path taken by mature markets and compare the special situation of Saudi Arabia. It is not difficult to make the following inferences:
- The stone line will gradually move closer to form a concentrated large-scale stone production area: the regionality of the stone line is very obvious, mainly due to the supply of raw materials and project demand. As the market matures, some large-scale stone production areas will gradually Formation, on the one hand, the government is easy to manage (the UAE government concentrates the stone lines in various areas of Fujairah, and sets up toll stations in each area, charging fees according to the weight of each truck, compared to the method of collecting rents of quarry market report on an annual basis, The former management is more refined and more reasonable, and the possibility that the Saudi government will follow suit in the future is not ruled out. On the other hand, it will also facilitate the procurement and transportation management of customers in the market. This is a necessary process for the market to gradually mature, and those small and scattered The stone line will be forcibly transferred or shut down, or due to lack of purchasing customers autonomously transfer or shut down.
- Most of the new project growth points or potential customers will be born in the customer group that already has a production line. It is necessary to know that there are two main factors that determine whether a broken line project can start: first, whether there are order resources, and second Second, whether it is possible to obtain a mining license, and those customers who already have production lines are obviously more advantageous. First of all, they have very stable order resources and partners continue to sell products. Second, if they have projects in the same mine, they do not need additional licenses. It is relatively easy to apply for licenses even for different mines. On the one hand, the government The system has resources. On the other hand, they have proven that they can continue to increase taxes for the country; the production lines in the UAE, a customer rarely sees a single production line, almost always two or more.
- Projects have changed from miniaturization to large-scale: According to past experience, Saudi Arabia has always been easier to issue large orders. In fact, the large orders we won are only one and a half of the new projects added each year, and most of the projects are still at 200TPH. However, this situation is gradually changing. Due to the low production capacity of small projects, irregular management, and serious pollution, it is becoming more and more difficult for more and more small production lines to approve, and it is increasingly unable to keep up with the market. Rhythm, imagine that the construction of an airport or the development of an area requires almost massive stone lines. Compared with the decentralized management of several small suppliers, they prefer a company with sufficient production capacity, standardized management, and stable supply. Suppliers of stone materials, therefore, it is an inevitable trend to become larger in the future, and the proportion will become higher and higher;
Everyone knows that Iraq and Iran are definitely high-growth markets, but to be honest, I did not know the details of these two markets, so I can only temporarily regard them as potential markets, and consider the two markets Treat development as important work;
In the other Middle East quarry market, the enquiry volume is relatively small and the market capacity is not large. According to past transaction records, these countries are indeed difficult to attract attention, and Jordan, Syria and Lebanon all have relatively small crusher suppliers. It has a certain market share in various regions of the Middle East.