Ceramic sales market is obviously warmer

China's sanitary ceramics account for more than 40% of the world's total production, and the product's cost-effectiveness is relatively high. However, there is a gap between technological equipment and the world's advanced level. The high-end brands in the field of sanitary ceramics are almost blank. China's output accounts for more than 40% of the world, especially since the financial crisis. The market share of Chinese products is increasing. Everyone knows that since the financial crisis, countries such as Italy and Spain have been greatly affected and their industries have been greatly damaged. The industries of these countries are shrinking, and China's industries are developing. As a result, China's ceramics industry has become more and more important in the world market.

China's ceramic tiles and sanitary ware products have some gaps in foreign markets and brands. The Chinese building sanitary ceramics industry currently does not have world-renowned brands, especially the sanitary ware industry. Many people use domestic and high-end hotels are foreign brands, not their own high-end brands, this is the soft underbelly of China's sanitary ware industry. China's ceramic tile industry may have many westernized brands on the market, but they are all made in China and made in China.

In the market, imported tile products, according to the statistics of the China Building Sanitary Ceramics Association, basically do not exceed 10 million square meters in one year, which is insignificant. In other words, foreign tile products have basically no place in China, but foreign sanitary ware has firmly occupied China's high-end market.

The whole industry has basically achieved the "National Retirement and Progress" and operates according to the laws of the market. The Chinese architectural ceramics industry has been completely or almost entirely dominated by private companies, so the industry is relatively active. According to the foreign counterparts, a large number of private enterprises in China have spent 10 or 20 years in the 30 years of the development of reform and opening up. The development of the Chinese architectural ceramics industry is very fast. This is the current overall situation of China's ceramic industry.

1. The situation of a clear recovery in the sales market across the country Due to the impact of real estate and the market demand that was suppressed last year, this rigid demand suddenly broke out. In addition to the thorough destocking last year, some companies and some markets have seen a blowout this year. The outbreak.

In the first half of this year, our judgment on the overall situation of the entire industry is that there has been a clear recovery in sales markets at all levels, especially ceramic tiles. This means that there has been a noticeable recovery in the country as a whole. It may be local or part of the company, and its growth is more than expected. In the first half of this year, we reported the situation of the industry to the Ministry of Industry and Information Technology and the National Development and Reform Commission. The association used two sentences to describe it: The situation was improving and expected; the situation was good and unexpected. Due to the impact of real estate and the market demand that was suppressed last year, this rigid demand suddenly broke out. In addition, destocking last year was relatively thorough. This year, some companies and some markets experienced a blowout-type outbreak. So for the markets across the country this year, we use the word recovery to summarize.

2. The rising cost of production Another thing to say is that the production costs of companies are continuing to climb. There are two main reasons for this rise: one is the cost of labor, and the other is the cost of energy conservation and emission reduction. And these two costs will continue to rise in the future, not only last year, but not only this year.

3. The demand for products and market structure continues to evolve towards “polarization” The market before the development was a relatively high pagoda type, and the current market is developing in a bipolar direction. The structural needs of the market are rapidly shifting towards polarization. How do you explain polarization? Good companies, branded companies, are getting better and better. This year there has been a serious shortage of supply for many brands in China. There are also many markets, especially rural markets, where such products are in short supply. Everybody says that the market bricks and market products are relatively low-priced products and the market conditions are also very good. Two-level differentiation is also a problem that has arisen in recent years. Some companies, whether brand or price, are in the midstream of the industry, and the situation may not be as optimistic as the overall situation. Although the overall situation is relatively good, some companies may feel that they are still not as good as last year, so this is an indication of the polarization of markets and products. The former market was a relatively tall pagoda type, and the current market is developing in a bipolar flat direction.

4. Eliminating backward processes and accelerating the contradiction of overcapacity Obviously relieving last year's equipment exhibition, many equipment suppliers are very worried, saying that there are no follow-up orders on hand, and they do not know how to survive in the future. Last year, the investment in fixed assets of the construction and sanitary ceramics industry fell to the lowest level in more than ten years. Due to the overcapacity of many enterprises, about 20% of the country's production capacity cannot be fully utilized. This year, we learned about most of the companies across the country. Except for Fujian, most of the production areas can basically balance production and sales, and local demand is in short supply. Last year, the contradiction, including the overcapacity in the previous year, was obviously eased. Not only the country, industries, and companies are also adjusting product mix and promoting industrial upgrading. This year we learned that many companies, including Shandong, have used inkjet printing, and many companies in Sichuan have also replaced new equipment. After the equipment is updated, their sales and profit levels are better than in the past. This is our judgment on the overall situation of the entire industry in the first half of the year.

In the first half of this year, the country’s ceramic tile production has exceeded 4.5 billion square meters, with a growth rate of 5.8%, a slight increase from last year, but it is still at the single-digit growth level. The output of sanitary ceramics also increased by more than 5%. Last year, sanitary ceramics companies were better than building ceramics. This year, sanitary ceramics enterprises are not as good as last year. Last year, the growth of sanitary ceramics was higher than that of architectural ceramics. This year, the growth rate of sanitary ceramics has declined. It may be related to market demand. The market demand is to use brick first and then use sanitary ware. According to our judgment, the use of sanitary ware may increase significantly in the second half of the year or next year.

This year's development trend is similar to that of last year. Domestic demand growth is not as fast as growth in external demand. Exports still maintained a growth rate of 36.92% this year, but the number of exports did not increase much. Last year's assessment of the industry's situation is that there has been a turning point in the export of building sanitary ceramics, and the attached article of the export product has been substantially increased from the value added unit of Huaxia Ceramics. Through many companies, we learned that, on the one hand, the domestic market is in short supply, and companies are reducing the volume of incoming orders, and prices have also increased accordingly. The second aspect is the increase in costs. There are also changes in the exchange rate, coupled with the development of the industry itself, the product changes from low to high.