Tao enterprises stop kiln cited brick prices

Affected by the reduction of suspended production capacity by some ceramic companies, since November, the prices of bricks and tile products that have been falling continuously have shown signs of rising prices, among which the rising prices of polished tiles are more evident.

The ceramic enterprises shut down the kiln in advance and the overall ceramic industry cuts production According to the reporter, as the ceramics industry in the downstream industry of the real estate industry was affected by the deteriorating property market, the entire tile market environment did not improve in 2014, and some ceramic companies started to stop line-up since June. According to a number of industry veterans, business owners, and related reports, in mid-July, the Pan-Gao'an Production Area had already stopped at nearly 40 lines. Its government officials in charge of the ceramic industry even lamented that “the overall loss of the Gao'an-producing area”; at the end of July, the pan The stoppage rate in Jiajiang production area was as high as 50%; in August, the number of production lines in Enping production areas was reduced to 37; in Guangdong's entire ceramic production area, the production capacity was reduced by nearly 30%; in September and October, the operating conditions of most of the polished and privately-run factory were appalling. The sales volume was as low as near the historical low; in October, Foshan stopped the line of kiln stopping 30%~40%, and Zhaoqing and Enping had stopped 60% of the kiln shutdown.

“Ceramic enterprises cut production, stop production lines, and stop the kiln, and in the market environment where the sales volume does not go up, it is a wise choice to implement the 'self-help' strategic adjustment.” Wang Hongwei, director of Yujia Ceramics, said in an interview with reporters that from the company itself For the entire ceramics industry, this is an industry need to absorb excess production capacity. .

For the ceramic industry in advance to enter the kiln "hibernation period" of this industry phenomenon, the reporter also interviewed the director of Monalisa ceramic Zhang Qikang, which said: ceramics plant kiln in advance to prove that the overall economic environment is not good, ignoring porridge less orders Reduction, serious imbalance between production and sales of ceramics enterprises can not afford to inventory, in order to avoid broken capital chain, the suspension of kiln should be the best policy for the survival of enterprises, a wise and rational choice.

Temporary shortage of bricks, fears of rising prices "The market is indigestible and difficult to digest. Together with the close of the year, it is estimated that some of the seven or eight production line scale ceramic companies currently have only one or two production lines in operation." Lan Po Ceramics General Manager Pan Bingran In an interview with reporters, he was so emotional. According to its disclosure, with the increase in the number of kiln stoppages in the entire industry, the prices of brick and tile finished products that have been falling in price since November have been showing signs of increasing prices. Take the 600*1200 specification polycrystalline bricks as an example. At the end of October, it fell to 20 yuan per piece, but now the unit price rebounded significantly.

In the ceramic industry's "war-torn, smoke-heavy" environment, as the Chinese architectural ceramics center in Foshan, the Foshan ceramics production area's suspension of kiln conditions even more attracted the attention of the industry. Wang Hongwei, director of Yujia Tile, stated that in late November, the ceramic industry will continue to enter the peak period of cessation of kiln operation. The overall trend should be to stop the kiln to open the kiln early. The peak kiln period is expected to be in April and May of next year.

“Since many companies have ceased kiln operations in the near future, the supply and demand of bricks have been imbalanced, and the price of bricks has continued to increase, further reducing our living space. In order to maintain the normal operation of the company, it has been determined by the company’s research since November 10, 2014. The sales price of ceramic tiles will be adjusted, including promotional price and activity policies.” The reporter learned from the special interview on “The company stopped the kiln and the price of bricks and tiles”, similar to this kind of internal corporate notice, also seen in some OEM brands Tao enterprises and some production Sales of ceramic enterprises in the internal notice. According to report, a considerable number of ceramic companies have begun to adjust the prices of brick and tile finished products.

Compared with the ceramic tile market that has been sluggish this year, the current rising prices of such bricks and tiles have been a phenomenon of "returning to the light," which has occurred in the downward trend of tile prices. There are people in the industry lamenting that this is not necessarily a good thing. !

Not the market is getting better, it's the “back to the light” that the production capacity is over.

Brick prices, ceramic tile prices, is not the government's loosening, mortgage policies work, the spring of real estate, causing the ceramic industry market recovery? For November ceramics industry "brick price" this "Arab Spring", Mongolia According to Zhang Qikang, a director of Na Lisha Ceramics, the price increase of bricks is a short-term order tightening brought about by the industry's general suspension of the kiln. It is not a situation where the semi-finished products are in short supply, but is a previous low-cost, low-price strategy, which is achieved by accelerating inventory turnover. Cash flow, small profits but quick turnover, no own brand and market channels, coupled with fierce competition in the industry, had to lower prices to benefit OEM brand companies to obtain stable orders. He believes that before this, the price of bricks was too low, enterprises could not counter the pressures of increasing labor costs, pollution emission control, raw materials, taxes, etc. Micro-profits could hardly support business operations, and they only used the opportunity of short-term market demand to raise prices to increase their Profit opportunities.

How long can the prices of brick and tile finished products last? Many ceramic industry veterans and business owners agree that the rising prices of brick and tile finished products will only be a phased performance of the market in adjusting the imbalance of ceramic tile product production capacity. This is not a market. The positive performance of the environment has improved. The serious imbalance in the production capacity of the ceramics industry and the objective reality that the real estate market has not been able to improve have determined that there is no sustainable price increase in the ceramics industry at this stage. Faced with the adjustment of the production capacity of the market, some ceramic companies adjusted the price of brick or tile by means of periodic fluctuations in supply and demand and fluctuations in production capacity, and there was no continuous profit opportunity.

“From an industry perspective, ceramics companies shut down the kiln in advance is the regulation of excess capacity by the market. This is a good thing for the industry. The entire industry can take this opportunity to digest the production capacity. Enterprises can also take this opportunity to digest the inventory; The signs of price increases are actually a kind of artificial confrontation to market regulation.” For the recent “rising brick prices, companies raise the price of tiles”, Pan Bingran, general manager of Lanpo Tiles, expressed concern.

According to the reporter, in the face of the sign that "brick and tile finished product prices have risen," some manufacturers have begun to consider or proceed with "hoarding of bricks and tiles" in order to seek "big gains" in the supply and demand opportunities of ceramic industry fluctuations; Companies face this sign, or shake their determination to stop the kiln, which directly affected the market's adjustment of the ceramic industry capacity.

Reporter's notes: Whether it is the ceramic industry or the sanitary ware industry, this year has been the peak period of corporate failures, and the reason is nothing more than the "domestic and external problems" of the ceramic sanitary ware industry. The external market is bleak and the internal trouble is the industry's productivity. excess. At this stage, the entire industry is looking forward to the improvement of the market. In addition to the uncontrollable external economic environment, in the face of market adjustment of production capacity, we should cooperate with market regulation and follow the rules of market development. Artificial speculative recklessness may aggravate the non-benign development of the industry and impede the process of market improvement.