Mining gear outlook
IS the record coal price building confidence?
Wednesday 23 November 2016
The second-hand market for heavy industrial and mining equipment has not yet responded to recovering commodity prices, but optimism is returning according to auctioneers.
Regional head of mining and transport for Graysmining.com Fenton Healy, says the current record coal price needs to last a bit longer before buyers feel confident again.
“No there hasn’t been a reaction to the coal price yet, it’s still too early for that to happen” he told Shift Miner.
“Certainly at our level there needs to be more confidence in the market for buyers to make a long term commitment.
“What has happened following the rise in prices is that a few mines are now going back into operation, and others like Anglo are putting their sale plans on hold.
“So some upcoming machinery sales have been shelved while vendors wait and see what happens.
“But there is definitely less supply than there was, and when demand picks up, some products will be harder to find, especially in the civil space.
“In general terms, we see the start of an improvement, but we are a long way from what people might consider normal in the sector, and even further away from what it was like at the height of the boom.
“But maybe we won’t ever see that again.”
Graysmining.com have been handling the dispersal sale of heavy haulage and crane equipment for troubled transport business McAleese, who recently entered into administration.
While that sales process is expected to continue for several months, Mr Healy says they expect interest from both overseas and local buyers.
“From our point of view it has been an interesting exercise,” he said.
“There has been some interest in quite a bit of gear, but not everything will go through the auction process.
“For the trailing gear we expect interest to be domestic, but for the larger crawler cranes we expect to see strong interest from both here and overseas.”
Mr Healy’s views were echoed by Queensland based industrial auctioneer Graham Messer who says he isn’t seeing any sign of a major turnaround.
“Still quiet at the moment,” he said.
"A few guys would like to sell some gear along the line, but the machines owe them too much, so they are just waiting for things to improve.
“There is a bit of enquiry from overseas, but nothing to get excited about.“It’s still pretty tough times for a lot of contractors, but maybe next year when the Tennant Creek to Mt Isa pipeline kicks off we might see some activity when the tenders get awarded.”
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