3 Key words: shut-down production, increased prices and mergers in China
03 Sep 2021/CTW
Production cost of ceramic tile have increased
This year, raw materials of ceramic color and glaze as well as cartons have increased in price many times. The supply of raw materials is becoming more and more tight. What's more, in summer, due to the high temperature, electricity consumption is in short supply in many parts of China. More than ten regions issued notices of off-peak power use, production and electricity limitation, which caused some ceramic enterprises to suspend production for one month in August.
Price hikes in the ceramic industry
In addition to the suspension of production, a number of ceramic enterprices from Guangdong, Jiangxi and other production regions have raised prices for their products. Among them, 300×600 (mm), 400×800 (mm), 800×800 (mm) and other specifications of tiles, medium-thick tiles, thick tiles, etc. are the main price-increasing products.
There have been 16 cases of mergers and acquisitions in China
According to CTW statistics, there have been 16 cases of mergers and acquisitions of ceramic enterprises in China since January. For instance, In April, Dongpeng Holdings acquired related assets of Shanxi Jinshijia Ceramics, adding an annual production capacity of nearly 25 million square meters. In August, Huida Sanitary Ware acquired LA’BOBO and added two new porcelain slab production lines, with an annual increase production capacity of porcelain slab of nearly 5 million square meters.
