13 Aug 2015/CTW
Off-season has come since mid-April. The sales of Zibo producing area continue to decline and a few companies begin to shut down production lines from May. Currently, many ceramic manufacturers suffer from high stock pressure and poor market.
A ceramic employee tells: “Since May, all our warehouses are totally full and a bigger new one is almost full now.” The similar situation can be seen everywhere, even some tiles are piled outside the factories directly.
A boss says that, a large number of tiles have been produced everyday, exceeding the sold tiles a lot, which results in high stock pressure. Up to June, ten production lines or so in Zibo have been shut down under the pressures.
The off-season in Zibo this year has come a month earlier than usual, market pressure becomes intense since May. The reasons are, according to an industry analyst, the ceramic industry is subject to the domestic real estate market downturn, and the entire Chinese market sales of ceramic tiles have sharply declined since the second quarter of this year. Moreover, new neighboring producing areas have an impact on the ceramic industry in Zibo, leading to sluggish sales.
In recent years, many large production lines and kilns, inexpensive and productive as those in Zibo, have been put to work in Hebei, Henan, Anhui and Jiangxi. The products made in these areas are cheaper and the profits are bigger, which have a strong impact on Zibo producing areas, especially on some small and medium enterprises.
Editor Li Xiaojuan, Deng Shiya
This is the 14th issue.