Tiles Output to Grow 5.5% in China in 2013

07 Aug 2015/CTW

When production of tiles in China could not meet market demand, it is widely concerned in the industry whether the annual output in 2013 can reach a new high. 

  

“The total output of ceramic tiles has reached 8.99 billion ㎡ from January to November, up by 5.5% year on year and about the same level with the year of 2012”, Said Liao Bin, secretary-general of China Building Sanitary Ceramics Association on the 3rd China Ceramics Conference on Dec.28, 2013. 

  

The growth rate is an important factor to define the development of an industry. China’s ceramics industry entered an era of one digit growth in 2012 after eight consecutive years of double digits growth since 2004.

  

Despite of the deceleration, regional output saw a remarkable increase. According to Liao, the growth in production areas such as Gansu, Guangxi and Zhejiang surpassed 20%, Henan, Shanxi and Jiangxi 15% while the output of Anhui, Inner Mongolia, Shanghai and Shaanxi decreased by more than 20% year on year.

  

In the field of sanitary ware products, the output of sanitary ware companies above scale from January to November was 1.177 billion units, up by 1.76% compared with 2012. Major production areas such as Hebei, Henan and Guangdong had seen a single-digit growth while those such as Chongqing, Shanghai, Jiangsu, Beijing and Shandong suffered decline of different degrees.

  

From January to November, the export volume of ceramic tiles and sanitary ware products reached $8.677 billion, up by a y-on-y 37.22%. For ceramic tiles, the exports went up by 5.7% reaching 1.004 billion ㎡, and the value accounted for $7.023 billion, up by 82%. For sanitary ware products, 54.5 million pieces were exported, up by 8.4% with a total value of $1.653 billion, up by 97.5%.

  

Liao revealed that the predicted yearly export value of $1.5 billion for sanitary ware products had been realized by October. However, the striding momentum might bring more anti-dumping issues, which would dent the export. 

  

In addition, during the first three quarters, 1683 ceramic tiles and sanitary ware companies have totally created a sales volume of ¥305.46 billion, up by 17.9%, producing a total profit of ¥19.46 billion with a growth of 29.25%.

  

Among these companies, 1410 companies claim a sales revenue of¥272.15 billion(+18.15%), and a total profit of ¥17.16 billion (+29.67%); 273 sanitary ware companies claim ¥33.31 billion in sales revenue (+16.15%) and a total profit of ¥2.304 billion(+26.2%). 

  

In 2013, the average profit for ceramic tiles and sanitary ware companies was 6.37%, of which companies of ceramic tiles accounted for 6.31% and those of sanitary ware companies 6.92%. 

  

When analyzing the situation of ceramic industry during the first 11 months of 2013, Liao pointed out the ceramic industry was blessed with a noticeable recovery in 2013 compared with 2012. The production and sales of building ceramics are better than those of sanitary ware products with a higher brand recognition in market; the export growth would keep outrunning domestic consumption growth for a period; it would still be the major issues in 2014 to carry out clean production, energy saving and emission reduction, produce thinner tiles and lighter sanitary ware products, and upgrade the whole industry.

  

Wang Xiaoguang, researcher of the consulting department of Chinese Academy of Governance took a closer look at the prospect of China economy from the perspective of macroeconomic development. He thought that China economy growth would see a smooth fluctuation between 7% and 8% under the guiding principles of “pursuing structural readjustment, steady growth and further transforming” put forward by president Xi Jinping and premier Li Keqiang. Wang believed that future development of ceramics industry would rely on the reverse of overcapacity by leading powers in this industry and the action of structural readjustment and transforming. Li Wenjiang said that the housing market would not be influenced immediately by the leverage of property tax, which needs time to be lawful. But he warned that ceramic companies should have an awareness of crisis. 


This is the 2nd issue.

Reporter :Tian Xiaocao & Wu Xu

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