China's sanitary ceramics industry is currently in crisis or latent

In 2010, China's sanitary ceramics maintained a relatively high growth. According to statistics from the China Building Sanitary Ceramics Association, China's sanitary ceramics production in 2007 was 176.84 million pieces, an increase of 13.35%, which was a significant increase from the 1.8% increase in 2009. Including: 67.73 million in Guangdong, an increase of 15.15%; 53,200 in Henan, an increase of 11.3%; 23.2 million in Hebei, an increase of 4.91%; 9.93 million in Hubei, an increase of 50.13%; 5.17 million in Fujian, an increase 47.92%; Hunan produced 4.33 million, an increase of 18.05%; here in Guangdong, Henan and Hebei Provinces, the total output of sanitary ceramics was 1.4413 billion in 2010, accounting for 81.05% of the country's total output. In 2010, China exported 54.12 million pieces of sanitary ceramics (2009.09 million pieces in 2009), the export value was 7.7897 million U.S. dollars (2009: 66763 million U.S. dollars), the average unit price was 14.39 U.S. dollars per piece (2009 14.49 U.S. dollars per piece), and the overall export status Compared with 2009, the total amount, amount, and average unit price have not reached the level of 2008.

From January to May 2011, the overall production and sales were in good condition, but after entering the second half of the year, it declined significantly. China's sanitary ceramics is currently facing the general situation: The real estate market under the influence of the national regulation of housing price policies, the decline in turnover is obvious, in 2011 10 million units and 36 million sets of affordable housing in the next 3 years is considered to be a decline in commercial housing transactions The corresponding supplement, but the fact is that the construction and progress of affordable housing is completely lower than estimated, at least in 2011, the limited promotion of sanitary ceramics and the corresponding building materials home market; macroeconomic inflation is serious, CPI in recent months in 2011 Breaking 5%, July's CPI reached a record high of 6.5%, raw materials continued to rise in price, and sanitary ceramics products did not appear to rise accordingly. The main reason is that supply exceeds demand, and product inventory is overstocked, which may lead to market Further vicious competition mutually depresses prices; the average unit price of product exports has dropped for two consecutive years (2008: US$ 14.51 per piece; in 2009, US$ 14.4 per piece; in 2010, US$ 14.39 per piece), and the current total export volume accounts for nearly three percent of the national output. In one part, the dependence of the entire industry on exports and the decline in the average unit price of exports put China’s sanitary ceramics exports into one Difficult position.

The requirements for energy saving and emission reduction are getting higher and higher. During the 11th five-year period, the state requires a 20% reduction in energy consumption per unit of GDP, and now during the 12th five-year period, it is required to further decline by 16% on the basis of the 11th Five-Year Plan and incorporate government performance. The implementation of the accountability system for management and implementation of the mandatory national standard GB25464-2010 “Ceramic Industry Pollutant Discharge Standards” that began in October last year poses greater pressure on the production and manufacture of sanitary ceramics. In 2010, the production of sanitary ceramics in China increased substantially. The largest growth areas are Hubei and Fujian, two new production areas. Expansion expansion similar to that of building ceramics is quietly emerging. Disordered expansion and expansion will provide a breeding ground for low-cost vicious competition. The quality of sanitary ceramics is also the current industry. The important aspect that must be faced is that the quality of the products of several famous brands has received a lot of complaints and network sieges from consumers. This year’s “national pumping” also saw a situation where the quality of big brands did not pass. It is now a “national pump”. "Provincial pumping" continues, consumer demands are getting higher and higher, awareness of rights protection is getting stronger, and companies must not be sloppy in their efforts to strengthen quality management.

We can note that the production capacity of China's sanitary ceramics industry is still growing, the demand in the domestic market is declining, and the overall economic recovery in the international market is not as expected; the cost of materials is rising, the product prices are not rising, and corporate policies (energy saving and emission reduction, Labour costs, etc.) Operating costs are rising, and vicious competition in the market (low-cost dumping, plagiarism, etc.) is becoming more and more intense. All these indicate that the sanitary ceramics industry may be plagued by various crises. Judging from the two aspects of macroeconomic development and industrial development, whether the winter of 2011 will come in advance and how cold this winter will be, this is a common concern in the industry. Prepare for ideas in advance and actively look for countermeasures. May be the key.