April 05, 2025

China's ceramic industry is deeply mired in internal and external difficulties

For the ceramic industry, this year can be described as internal and external. Overcapacity, product added value is too low, international competitiveness is not strong, and the profit is meager and encounters a number of anti-dumping investigations. Faced with such a dilemma, where is the future of the ceramic industry? Internal worry overcapacity is meager. Although China is a big ceramic producer, it is not a strong country. The products are mainly medium and low-end, with low added value and low price in the international market. According to reports, a ceramic cup with a price of 0.7 US dollars, exported to the EU for about 3.5 US dollars, but domestic companies only profited 0.1 US dollars. The rest of the big heads were taken away by foreign dealers. They removed about $1.50 in expenditure and actually earned more than $1, which is 10 times the profit of Chinese manufacturers. Zou Mingxiao, a researcher in the building materials industry of CIC, pointed out that the profit of China's ceramic enterprises is meager, mainly due to high cost and relatively low sales price. One of the most important reasons is the fierce market competition. Due to the serious homogenization of products and the high market concentration of major manufacturers, the market competition is fierce. In order to increase sales and occupy market share, ceramic companies will not hesitate to lower prices. Sales, which led to a meager profit in the industry. “Upstream raw materials are also one of the reasons for the meager profits of ceramic companies.” Xia Gaosheng, deputy secretary-general of China Building Sanitary Ceramics Association, said that in addition, macro-control of real estate has restricted the growth of market demand. Foreign countries face many anti-dumping data. At present, China is already the largest producer of daily-use ceramics, accounting for 70% of the world's production. The market share in the EU is close to 50%. It is the largest importer of daily-use ceramics in the European Union. country. According to the statistics of China Ceramic Industry Association, the cumulative amount of kitchen utensils exported to the EU last year exceeded US$700 million. The European Commission recently issued the "Notice on the EU's Anti-dumping Investigation into China's Ceramic Kitchen Tableware", announcing an anti-dumping investigation against ceramic tableware and kitchen utensils exported from China to the European Union. Previously, in September 2011, the EU made a final ruling on the Chinese ceramic tile anti-dumping case, levying a punitive tariff of up to 69.7%, and the validity period was up to 5 years, and may be extended as appropriate. This is the anti-dumping case of the Chinese ceramics industry with the widest scope and the largest amount involved, involving an amount of up to 700 million US dollars, including more than 2,000 enterprises. In fact, this is not the first anti-dumping incident facing the ceramic industry. According to the Ministry of Commerce, the Indonesian Anti-Dumping Committee also issued a final ruling on the anti-dumping investigation of Chinese ceramic tableware products at the beginning of this year. It plans to impose an anti-dumping duty of 87% on the above products. This is the first anti-dumping encountered by the ceramic industry this year. "The EU launched an anti-dumping adjustment on China's ceramic tableware and kitchen utensils, which will reduce the number of ceramic exports and exports in China during the investigation." Zou Mingxiao said. But at the same time, the anti-dumping is also good for the long-term development of China's ceramic industry. "The current ceramic enterprises lack the ability of independent innovation, and the competitiveness of the international market is not strong." Insiders said. Zou Mingxiao also believes that this may promote the continuous improvement of management and operation of China's ceramics to a certain extent, and improve product quality and market transparency. Outbound way to divide the industrial chain. It is worth noting that due to overcapacity and other reasons, the performance of many ceramic listed companies in the first half of this year is also very unsatisfactory. The relevant ceramic enterprises said that the ceramics company's poor performance or even loss in the first half of the year was mainly due to the decrease in sales volume, the average sales price was lower than originally expected, and the gross profit was reduced. In the interview with reporters, the person in charge of the ceramics said that the ceramic industry needs to carry out industrial chain division and resource integration. Different products have specialized OEM OEMs, each specialized in a few varieties but with large production scale. , divide production and cooperation with production and brand and sales channels. It will make the cost-competitive manufacturers better and better, and the production capacity without cost competitiveness and low product technology capability will be eliminated naturally. In this regard, Xia Gaosheng also agreed: "The operation of the entire industry chain of the ceramic industry, there is no specialized division of labor, resulting in too much investment in the production side of the production, the channel of sales is too complicated, the management is difficult and costly." In addition, Zou Mingxiao told reporters that the ceramic industry is in the off-season of sales, the market demand is sluggish and the ceramic industry is overcapacity. The contradiction between production and sales is mainly from the two aspects of open source and expenditure reduction. In terms of open source, ceramic companies should open up new channels and gradually reduce product prices to promote sales and increase sales. In terms of throttling, ceramic enterprises should gradually reduce the production volume, and cultivate internal strength to improve the technical level and carry out research and design of new products to meet the needs of consumers' individualized diversification.

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