Strong recovery of building sanitary ceramics industry

According to statistics of 2634 architectural ceramics and sanitary ware companies above designated size, the main business income for the year was 587.3 billion yuan, an increase of 17.31%, of which 1,435 architectural ceramics enterprises were 383.1 billion yuan, an increase of 17.43%; 275 sanitary ceramics enterprises 491 billion yuan, an increase of 20.45%; 924 hardware and sanitary enterprises reached more than 15.51 billion yuan, an increase of 16.07%; the output of major products increased to varying degrees, ceramic tile production was 9.69 billion square meters, an increase of 7.8%; sanitary ceramics production exceeded 210 million pieces , an increase of about 3.3%. The total export volume of all types of architectural ceramics and sanitary ware products in the industry reached US$17.87 billion, an increase of 22.82% over the previous year.

Zhai Bin, Secretary General of the China Building Sanitary Ceramics Association, said that in the face of the complex and ever-changing situation, in 2013, the State Department of the State Council adhered to the general tone of work for steady progress, maintained its policies, and launched a series of potentials to release domestic demand. , Resolving excess production capacity, and reducing the burden on small and micro enterprises. Under the promotion of the macroeconomic policy of “stability and progress in the country”, the overall operation of the building ceramics and sanitary ware industry in China was better than expected, brand companies benefited greatly, and excellent brands and innovative products were increasingly recognized by the market. Promote the continuous adjustment of product structure, "export growth rate higher than the growth rate of domestic demand," the development trend continues, thin, lightweight, water-saving products are more concerned about the community, the entire industry to accelerate the pace of environmental protection, energy saving, "structural adjustment , promote the upgrade "to become the mainstream of development, the sales market across the country there has been a "strong recovery" trend.

Demand for Real Estate Demand to Release Ceramics Production and Sales Prosperity 2013 was a year of active recovery of the local market and the property market. With the continuous release of property demand for self-occupation and the continuous increase in demand for improvement, the sales market for ceramics and bathroom products across the country has seen a blowout market, and production companies have achieved both sales and sales. The retail market and engineering market place a large demand for ceramics and bathroom products, especially indoor wall and floor tiles. It is beyond the expectation of the industry that many companies are caught off guard.

After the second quarter of last year, most brand enterprises once fell into a serious shortage of supply capacity. Many companies not only digested past inventory, but also tried to quickly increase production capacity to respond to rapidly emerging market demand. In hot-selling ceramic tile products, the sales situation of interior wall tiles and floor tiles products is obviously better than that of exterior wall tile products.

Enterprises above designated size in the industry achieved a profit of 42.55 billion yuan last year, an increase of 22.27%, and the average industry-wide profit rate was 7.25%. Among them, the profit of architectural ceramics enterprises increased by 24.55% (8.31% increase in 2012), the average profit rate was 7.60%, an increase of 0.43% over the previous year; the profits of sanitary ceramics enterprises increased by 13.67% (falling 5.55% in 2012), and the average profit rate. It was 7.70%, a decrease of 0.45%. The profits of hardware and sanitary ware companies increased by 19.17% (a decrease of 25.43% in 2012), and the average profit rate was 6.22%, an increase of 0.16% over the previous year. According to statistics, with the improvement of the macroeconomic environment, the restructuring and upgrading of the industry's adjustment structure was accelerated. In 2013, the company made a significant turnaround. The loss of the entire industry was 7.02%, the number of loss-making enterprises decreased by 33.3%, and the loss amount decreased by 30.35%. The number of loss-making enterprises in architectural ceramics decreased by 22.36%, the loss amount decreased by 50.15%; the loss amount of sanitary ceramics enterprises decreased by 28.6%, and the loss amount increased by 5.09%. As the company's investment in transformation and upgrading, energy saving and emissions reduction requirements, rising labor costs, and increased management costs have changed, the operating costs of companies have generally risen dramatically in 2013, with an average increase of 18.1% in the industry, including construction. Ceramic enterprises increased 18.2%, sanitary ceramics enterprises reached 21.4%, and hardware and sanitary ware enterprises were 17.0%.

Last year, the country’s ceramic tile production was 9.69 billion square meters, an increase of 7.8%, which was higher than 2012. Outputs of ceramic tile major producing areas such as Guangdong, Fujian, Jiangxi, Liaoning, and Sichuan have all increased at different rates, and ceramic production in emerging production areas such as Gansu, Guangxi, Henan, and Shaanxi has grown by more than 20%. The production of architectural ceramics in Shanxi, Chongqing, Jiangsu, and Xinjiang declined in different ranges, among which Anhui, Inner Mongolia, and Shanghai declined by more than 20%.

The China Construction Sanitary Ceramics Association has conducted surveys and calculations on various architectural ceramics production areas throughout the country. At present, the country actually maintains more than 3,000 ceramic tile production lines and the production capacity exceeds 11 billion square meters. After the second quarter of 2013, the demand for the market grew rapidly and there was a phenomenon that supply was in short supply. However, as a whole, there was no change in the oversupply of building ceramics in China. Due to the improvement of market demand and stable macroeconomic fundamentals, it is expected that the new capacity of the construction ceramics industry in China will exceed 1 billion square meters in 2014 (including the phase-out and transformation of old production lines). With the successive release of new production capacity, in the second half of 2014, its impact on market competition and sales prices will become more apparent.

The overall operating environment of sanitary ware products, such as sanitary ceramics and its accessories and hardware and sanitary products, improved significantly compared to 2012. The output, sales volume, exports, sales, profits, and taxes of enterprises have “moderate” growth, among which the production and sales of sanitary ceramics companies are better than those of other sanitary ware companies. In 2013, the country’s production of sanitary ceramics exceeded 210 million pieces. Production in Hebei and Henan provinces in the main producing areas declined slightly, and production areas in Guangdong slightly increased. Outputs in Sichuan, Shandong, and Guangxi increased significantly, and production in Chongqing production areas declined significantly. According to the construction law and progress requirements of construction projects, the use of different types of ceramics and sanitary ware products has a half-year to one-year time interval. Paving external wall tiles is earlier than internal wall tiles and floor tiles, and sanitary ware is finally installed. The sanitary ware sales market will have more optimistic expectations.

The building and sanitary ceramic enterprises above designated size in China completed a fixed asset investment of 84.1 billion yuan last year, an increase of 26.89% year-on-year, reversing the declining growth rate of investment in the previous year. The construction ceramics enterprises completed a fixed asset investment of 71.7 billion yuan, an increase of 35.29% year-on-year; Guangdong, Jiangxi, and Henan provinces completed more than 9 billion yuan in fixed-asset investment in building ceramics; Hebei, Shanxi, Inner Mongolia, and Liaoning have more than doubled their investment growth. Sanitary ceramics completed investment in fixed assets of more than 123 billion yuan, a decrease of 6.68% from the previous year, Hebei, Henan and Guangdong provinces completed more than 2 billion yuan investment in fixed ceramics investment in sanitary ceramics; investment in Shandong, Anhui and Hunan increased by more than 50 %.

Exports Renewed High Alert and Illegal **

Sui Bin said that with the gradual recovery of developed countries in Europe and the United States and other regions, China's building ceramics and sanitary ware industry exports continued the strong growth momentum in 2012. The export value of architectural ceramic products reached 8.48 billion U.S. dollars, an increase of 26.65%; the export of sanitary ware products was nearly 9.1 billion U.S. dollars, an increase of 18.18%. Except for the decline in exports of plastic bathtubs, toilet seats and covers, toilet tanks and accessories, the export volume of other products reached record highs.

Ceramic tiles are the products with the most export value and the most increase in net value in various products. Last year, exports of ceramic tiles were approximately 1.15 billion square meters, an increase of 5.3%. The value of exports increased by a net increase of 1.54 billion U.S. dollars from the previous year to 7.89 billion U.S. dollars, a year-on-year increase of 24.3%. The average unit price was 6.88 U.S. dollars per square meter, an increase of 17.61 over the previous year. %. Sanitary ceramics exported about 61 million pieces, an increase of 10.5% year-on-year, with export value of 1.99 billion U.S. dollars, an increase of 113%. The average unit price was 32.64 U.S. dollars per case, an increase of 92.79%. It is the largest increase in the export value and average unit price of all products. The export value of hardware and sanitary products reached US$4.04 billion, a year-on-year increase of 11.42%, and the average unit price increased by 5.8%; of which, the shower room products were US$2.06 billion, an increase of 10.37%, the average unit price increased by 10.45%, and the bath products were US$380 million. The decrease was 12.18%, the average unit price fell by 8.37%, the toilet seat and cover plate was US$320 million, a decrease of 3.0%, and the average unit price decreased by 0.71%. The largest drop in export value was in plastic water tanks and fittings, totaling US$310 million, a drop of 36.52%, and an average unit price falling by 4.08%.

In 2013, the country exported a total of 508,000 tons of other types of architectural ceramics, a decrease of 3.9%, but the export value was nearly 590 million US dollars, an increase of 71.2%. The average price per unit product increased by 78.11%. The annual export of ceramic color glazes was 213,000 tons, an increase of 19.07% over the same period of last year. The export volume exceeded 290 million US dollars, an increase of 60.68%, and the average price per unit product increased by 34.95%.

Regarding last year's ceramic tile and water tank fittings products, there have been unusual fluctuations in export prices, Sui Bin reminded exporting companies to be particularly alert to international hot money using ceramics and sanitary ware products for export arbitrage. Last year, some commercial enterprises were suspected of export arbitrage and imported hot money from abroad into the territory. This year, they spread to sanitary ceramics. The FOB prices of some products exceeded the normal level by several times or even exceeded ten times, causing the export volume of some varieties to grow far beyond the normal level. He stressed that this illegal export arbitrage activity caused a false demand for domestic products and the price was inflated, which was not conducive to the normal development of the construction ceramics and sanitary ware industry, and interfered with the judgment of the industry and enterprises on the market demand situation. So far no production enterprises have been found. Involved in this illegal export arbitrage trading activity.

Enjoy the brand dividend and accelerate the pace of innovation In the building ceramics and sanitary ware industry, “branding” and “individualization” have become the consensus in the industry. Yan Bin was delighted to introduce that the huge market demand that unexpectedly arrived at the beginning of 2013 has enabled many companies with high-quality products to enjoy the brand dividend. A steady stream of engineering orders, retailer orders, and export orders from all over the country have left these companies overwhelmed. The market share occupied by branded products has risen rapidly. Well-known branded products, cost-effective “low-priced” products and featured innovative products have been favored by the market.

According to a survey conducted by the China Building Sanitary Ceramics Association on major brand enterprises across the country, most of these companies’ sales and profit growth in 2013 exceeded 20%. Although the production and sales of the majority of non-brand enterprises and the overall profitability are obviously better than the previous year, they are still unsatisfied with the brand companies. Some non-brand enterprises have to do OEM processing for brand enterprises.

In order to adapt to the changes in the market, ceramics companies have increased R&D investment and accelerated the pace of product upgrading. Domestic inkjet printers have dominated the domestic market, domestic inkjet printing inks have also begun to enter a large number of commercial applications, at the same time, more and more companies are using large-scale wide-section energy-saving furnaces, ceramic bricks, automatic picking and packaging equipment, sanitary porcelain high pressure New technologies and new equipment such as automatic molding equipment, high-efficiency environmental protection processing equipment, etc.

In order to cope with the fierce e-commerce challenge, industry mainstream companies are seriously considering and exploring the development trend and market positioning of the future circulation marketing mode of the ceramic sanitary ware industry, accelerating the layout of enterprises in the e-commerce field, and winning the future for the enterprise in the e-commerce channel. right. At the end of last year, 20 ceramic elites such as Huanai Home Furnishing Group initiated by the China Building Sanitary Ceramics Association jointly funded the establishment of China Ceramics Investment and Development Co., Ltd. One of its main objectives is to boldly transform and upgrade the traditional marketing model of the Chinese ceramic sanitary ware industry. Try and explore.

Phase-out transformation and improvement of green and healthy development Under the background of the basic national policy of building beautiful China, saving resources, and protecting the environment, China's architectural ceramics and sanitary wares industry is focusing on promoting green development, recycling development, and low-carbon development, vigorously promoting resource conservation, and controlling total energy consumption. Volume, reduce energy consumption, material consumption and carbon emissions.

In recent years, China's building ceramics and sanitary ware industries have the contradiction that the capacity expansion is greater than the market demand growth, and the market competition is fierce. It has become a consensus among many companies to increase brand awareness and value-added, increase sales network in the market, accelerate the pace of product and technological innovation, and enhance the level of corporate management, thereby further enhancing the overall competitive strength.

In 2013, under the background of increasing efforts to implement energy-saving emission reduction and environmental governance at all levels of government across the country, building ceramics and sanitary ware companies in various regions across the country have implemented green development strategies. Most of the building ceramics enterprises in Quanzhou, Fujian Province Completed the transformation project of clean energy; in Zibo, Shandong Province, according to the policy plan of “eliminating batches, reconstructing batches, and upgrading batches”, approximately 1/6 of the ceramic production capacity was eliminated; Foshan, Guangdong, Gao'an, Jiangxi, Faku, Liaoning, The governments of the main producing areas such as Jiajiang, Jianjiang, Sichuan, etc., according to the current situation of energy conservation and emission reduction, started to reorganize and plan the policies and ideas for the development of local ceramic industry, and comprehensively promote the sustained and healthy development of the construction ceramics and sanitary ware industry.