United Tractors reports strong sales growth in 1H22

• Heavy equipment distributor United Tractors has reported a significant increase in sales in 1H22, reflecting a recovery of demand from the mining sector.
• The subsidiary of conglomerate Astra International sold 2,873 units of Komatsu heavy equipment in 1H22, a 111% increase y/y from the 1,361 units marketed in 1H21.
• The mining sector contributed 61% to total sales, while construction and forestry contributed 18% and 12%, respectively. In the month of Jun 22, the company sold 473 units, 58% of which went to the mining sector, which has been thriving on the back of high prices of mining commodities, including coal and nickel.
• Indonesia’s benchmark coal price (HBA) hit USD323.91 per ton in Jun 22 – the highest ever since the Energy and Mineral Resources Ministry began publishing the HBA in 2009 – but declined slightly to USD319 in Jul 22, ministry data show. The benchmark price is more than double what it was a year earlier at USD115.35 per ton.
• Financial research firm Moody’s Investors Service projects in its outlook for metals and mining, published in Jun 22, that most commodity prices will remain high for the time being.
• Particularly, base metal prices are expected to remain high and volatile, as prices for copper, zinc, nickel and aluminum, in particular, reflect low inventories and supply risks.
• The firm also projects coal prices will remain high thanks to continued strong demand, albeit below recent peaks as supply constraints ease.
• The company has increased its 2022 target for Komatsu sales by 29.7% to 4,800 units as high commodity prices and economic recovery are expected to push heavy equipment demand.
• “[We] have adjusted our sales projections, [but we are] still monitoring market movements until the end of 2022,” United Tractors corporate secretary Sara Loebis said.

External Link : https://www.thejakartapost.com/business/2022/07/26/united-tractors-reports-strong-sales-growth-in-h1.html