March 2017 number of auction items decrease compare to March 2016 (YOY).
Aggressive competition in new machinery market overseas dampens chance to sell used machinery. Auction prices in Q1/2017 unexpectedly fell faster than prices in overseas market (Japan). As a result, more sellers choose to sell machines in home market to reduce risks from price fluctuations.
Sellers are still selling machines overseas to hedge other business risks, but by increasing varieties and reducing number of similar model machines.
Generally, there are steady, but less positive demands for civil machineries (such as excavator, roller and motor grader) in Thailand and neighboring countries. Myanmar chaging regulations on machinery import brings uncertainty to future demands
We can see difficulties in used machinery market with increasing burden on investment cost like opportunity cost from slow turnover, rising cost for servicing etc. Therefore we continue to work on improving our services to create faith and offer the best values to our customers. In this year, our company introduce new project to improve auction distribution channel to create meaningful returns to both sellers and buyers.
“After Negotiation” is introduce for local reserved auction items. Bidder can negotiate with seller to buy machines below reserves price. “After Negotiation” will begin in April 2017 and is expected to provide more acute awareness for market fluctuations.
March auction results as compared to February’s
– Excavator size 1-4 ton prices down 10 -15%
– Excavator size 5-12 ton prices down 5 – 10%
– Electric forklift and engines 1.5 -3.0 ton prices down 5 – 10%
– Wheel loader various sizes prices down 10 -25% in some model and depends on machine condition
– Farm tractors and agricultureal machines prices down 5 – 10%
– Cranes prices down more than 20%
– Civil machineries prices down 10 – 20%
– Factory tools and equipment & miscellaneous items prices down
Note: Delayed government projects may affect auction prices in short term
(This analysis is for JSSR Auction results only and may differ from the general market)
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