Focus: 2011 China Ceramic Industry Development Eight Key Words

In the large environment of crude oil, coal, mineral raw materials, and chemical raw materials, the building ceramics and sanitary ware industries in China have experienced many difficulties in 2010. According to data from the National Bureau of Statistics, in 2010, the ceramic industry accumulated a total industrial output value of 166.052 billion yuan, an increase of 33.77% year-on-year, an increase of 16.17 percentage points over 2009. What are the prospects and development trends of the ceramic industry in China in 2011? Based on the 2005-2010 output value, and benefitting from the “Ceramics to the Countryside” policy, it is expected that China's ceramic industry will maintain a good momentum of growth in 2011, and the total output value will reach 224.1 billion yuan, an increase of about 35% year-on-year. However, various uncertainties still exist. Xiaobian Luo lists eight key words that may affect the development of China's ceramic industry in 2011.

Keyword 1: Cost increase In the first half of 2010, the market price of ceramic raw materials went up. In June, antimony oxide increased from RMB 160,000/ton to RMB 21 million/ton, zinc oxide also increased by RMB 600/ton, imported zirconium increased by USD 100/ton, and domestic zirconia increased by RMB 1,000/ton. Non-ferrous metals such as copper, cobalt and nickel have been affected by the international market prices and rising seaborne prices. Domestic pigment prices have also increased by 15% to 30%. In addition, as an important raw material for color glaze frit prices have also risen, up to 20%. From 2010 to the present, the price of chemical raw materials rose by more than 100%, and the price of coal also rose from the lowest of more than 700 yuan/ton to nearly 1,000 yuan. In addition, labor costs, logistics costs, and water and electricity prices have also increased. The production cost of enterprises continues to increase, and a considerable part of the enterprises that produce middle- and low-grade products have experienced declines in their profits or even losses.

Keywords two: oversupply In recent years, with the continuous upgrading of the ceramic industry transfer, ceramic production areas bloom everywhere. According to statistics, except for Tibet, almost all ceramics production lines have been established in various provinces, municipalities, and autonomous regions across the country. In addition to Foshan, Zibo, Jiajiang, Jinjiang and other traditional ceramic production areas, Jiangxi, Hunan, Hubei, Henan, Hebei, Liaoning and other emerging areas are also emerging. For example, in Gao'an, Jiangxi, as of October 2010, there are 91 ceramics enterprises with a total investment of 17.9623 billion yuan, of which 55 are ceramics production enterprises and 302 architectural sanitation ceramics production lines are proposed. At this stage, 69 enterprises have started construction and 50 of them have already started production. In 2010, local ceramic companies completed a total revenue of more than 10 billion yuan in their main operations. The total output was nearly 350 million square meters, and tax revenue exceeded 100 million yuan.

Chongqing Siwei Porcelain Co., Ltd. built 9 modern tunnel kilns and 3 shuttle kilns to form an annual output of 4.5 million high-grade sanitary ceramics, 4 million m2 glazed tiles, 30,000 bathtubs, and 900,000 sets of hardware accessories. ability. The sharp increase in production capacity, product market supply exceeds demand, while the growth of sales revenue in the industry is lower than the increase in output, the industry-wide oversupply and structural contradictions are still prominent issues that restrict the development of the industry. The contradiction between supply and demand in the market will further intensify. Over-expansion of production capacity will further exacerbate market competition and will gradually evolve into the main contradiction that will affect the continued healthy development of the ceramic industry in 2011.

Key words three: independent innovation Over the years, in the expansion process of the ceramics industry, more and more serious defects in the product design and R&D of the ceramic industry in China have been exposed. The phenomenon of product homogenization is serious, the product life cycle is shortened, and the company profits. With reduced capabilities, product R&D has fallen into a dilemma. A person in charge of a Foshan ceramics company said that the company’s ability to independently develop is still a weakness that Chinese ceramic companies need to strengthen. "Independent innovation" is a key focus of the national economic work in 2011 and it is a fundamental strategic plan for the development of China's science and technology and optimization and upgrading of industrial structure for the "Twelfth Five-Year Plan," as a way to transform economic development. Important means, independent innovation will mention an important position. Management innovation and technological innovation will be the theme of the development of China's architectural ceramics industry in 2011. From imitation to innovation will be the main theme of China's ceramic industry in 2011.

Keyword 4: Two economies are low-carbon economy and circular economy. In the future, if Tao enterprises want sustainable and healthy development, the uncertainties faced by them and even the policy risks are more. During the "12th Five-Year Plan" period, the government will put environmental protection and low carbon first. This means that only companies that have achieved low-carbon environmental protection have the potential to survive; this means that the industry will become healthy and green. The low-carbon economy is an economic model based on low energy consumption, low pollution, and low emissions. Its essence is to improve the efficiency of energy use and create a clean energy structure. The core is the fundamental change in technological innovation, institutional innovation, and development. The best way to break the bottleneck of the environment and resources is to develop low-carbon and circular economy, which will help improve the efficiency of energy and resource utilization, reduce environmental pollution, and promote innovation and sustainable development of the industry.

Key words V: Rural market statistics show that China's domestic sales market has maintained growth of more than 15% for many years, and annual sales have exceeded 650 billion yuan. With the construction of new countryside and the opening of infrastructure for large-scale water conservancy projects in the country, the demand for the rural market will further expand. Ceramics will become a bright spot in the countryside in 2011. It can be foreseen that the market capacity of the first-line developed cities is already approaching saturation, and that companies must further expand their markets and only expand sales sites continuously. The second- and third-tier markets in China continue to increase their spending power. The second and third-tier markets will be the main battlefields of the Tao enterprises. In the coming decades, with the acceleration of urbanization, the large-scale increase in investment in the construction of small and medium-sized towns, the industrialization of housing, and the improvement of people’s living standards, these areas will integrate high-quality, multi-functional green building materials products and industrialized system-integrated residential products. The demand will grow rapidly and provide a larger space for growth in the development of the ceramics industry. The rural areas will be highly concerned with the ceramics industry, and the rural market will attract more ceramic companies.

Key Words Six: Energy Saving and Consumption Reduction On December 29, 2010, the Foshan Municipal Economic and Trade Bureau disclosed at the city's energy saving and consumption reduction work conference that the city's 298 architectural ceramics production enterprises that were included in the adjustment and upgrading had so far transferred and converted 220 companies. . By the end of 2010, there will be only 62 building ceramics manufacturers in Foshan. Statistics show that from 2006 to 2009, energy consumption per unit of GDP in Foshan fell by 27.3%, and the rate of decline in energy consumption per unit of GDP ranked first in the province for two consecutive years. The architectural ceramics industry is not only a big resource and energy consumption, but also a big polluter. Some experts have actually surveyed the brick industry in Foshan that the current production of polished floor tiles per square meter consumes 5.5 to 6.5 kWh of electricity and 2.5 to 3.2 kg of diesel. The extensive economic development model that consumes a lot of resources, energy, and disregard for the environment is doomed to be difficult. How will the future of China's building ceramics industry go? The development of energy-saving building ceramics and the construction of a conservation-minded industry will be the inevitable trend for the development of the ceramic industry in China in 2011.

Key words VII: Export obstruction In recent years, the export volume of building ceramics and sanitary ware products in China has increased rapidly, and each year has been increasing at a rate of over 50%. In 2009, China produced a total of 6.4 billion square meters of various types of ceramic tiles, an increase of 11.68% over 2008, ranking first in the world. In the first half of 2010, China's export of architectural ceramics maintained a relatively rapid growth, reaching 136 million square meters, an increase of 68.61% over the same period of the previous year, and the export volume was 357 million US dollars, an increase of 72.86%. In recent years, the export market for ceramics in Guangdong and other ceramic producing areas has gradually increased, gradually changing the sales situation in the Middle East, Southeast Asia, and Europe and the United States. However, exports are difficult, and exports are subject to continuous decline in tax rebates, and the appreciation of The impact of international trade barriers is serious. If the export tax rebate rate is lowered twice in less than one year, from 13% to 5%, ceramic chemical raw materials are directly adjusted from 13% to zero, plus *** appreciation, price advantage and low cost advantage. It is not obvious.

In 2005, China exported about 420 million square meters of architectural ceramics, the average price was 2.86 US dollars per square meter, only 1/4 of the price of imported architectural ceramics in China. However, after a few years have passed, the situation does not seem to change much. According to statistics, in 2009, the average unit price of ceramic tile imports in China was US$18.69 per square meter, the average export price was US$4.18 per square meter, and the export price was only 22.3% of the import price. The sanitary ceramics situation is even worse. The average unit price of imports is 94.93 US dollars/piece, the average export price is 13.94 US dollars/piece, and the export price is 14.7% of the import price. The low price of ceramics means that resources such as land, energy, and manpower have been transported to foreign countries through cheap methods, and the energy crisis and environmental pollution caused by these problems can only be borne by themselves. At the same time as domestic export tax rebates and *** appreciation, the impact of international trade barriers has become increasingly serious. In particular, new international trade barriers have had a very serious impact on China’s foreign trade in building ceramics, such as environmental barriers and labor barriers. At present, China has become one of the countries that have suffered most from global anti-dumping and technical trade protection measures.

Keyword VIII: Industry Reshuffle As a result of the large demand and high profits of the built ceramics market in the past few years, the entire industry is still undergoing extensive and disorderly development. The industrial model still remains at a low level of repeated construction, and many new products are produced. The ceramic companies in the district mainly rely on low-cost factors, rather than technological innovation and brand building to participate in competition. The local governments also neglect the guidance, and only look for expansion. They are eager to achieve success. The production capacity of domestic major ceramic producing areas is in excess, and the market competition is fierce. Certainly will eliminate many small and medium-sized ceramic enterprises that have been on the line with the wind and whose financial strength is not good.

The pattern of the development of the ceramic industry in 2011 presented the following characteristics: Eastern Taiwan-funded enterprises continued to maintain a steady development trend; under the guidance of the local government in Sichuan Jiajiang, superior enterprises implemented mergers and reorganizations of disadvantaged enterprises; enterprises in Jinjiang and Minqing of Fujian Province To maintain stable development; Shandong ceramic production areas after the adjustment of the industry, began a new round of development; Guangdong ceramics from the doldrums gradually better; Fujian, Sichuan and other producing areas will emerge a vitality. Under this pattern, the third-party forces in China's built-pottery market are nearly 3,000 small-scale enterprises, which have the obvious disadvantages of small scale, outdated equipment, single products, low quality, and lack of market competitiveness. Under the law of market economy for the survival of the fittest, in addition to being merged and joined together, it can be said that the chances of survival of these small companies are generally small. The foreign construction giants seized the opportunity keenly to increase the acquisition of domestic ceramic companies.