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Industrial News

2015 Good News and Bad News for the Ceramic Tile industry

2015-12-18 15:29:02
Carried out since the 118th Canton Fair ,  the visiting businessmen less a lot than 117 Canton Fair. However , innovative product design , production and delivery is more flexible , more stable product quality corporate booth still attrack lots of customers. For foreign businessmen , the market performance of instability and their expectations for the RMB exchange rate fluctuations affect their single determination. Individual buyers or even withdraw long-term orders , or notify the enterprise to suspend the signing of the contract already . These situations are a test of patience and endurance enterprise .
This year, Ceramic tiles exports have good news and bad news.
The first good news is that the government trotted out a series of policies have been widely implemented. Central and local governments in branding, technology upgrading, export facilitation, Internet, etc. introduced a number of preferential policies in terms of transformation and upgrading and increasing value-added products to reduce the cost of doing business.
The second good news is the decline in energy costs. Ceramic firing costs about a quarter of the product cost. The industry is currently the most used natural gas and liquefied petroleum gas. With the decline in oil and gas prices on the international market, the domestic industrial use of natural gas and liquefied petroleum gas prices also realized a decline. This eased cost pressures to some extent, but also improve the enterprises to use clean energy initiative.
The third good news is a labor shortage eased. In the major ceramic producing area, smaller portions, orders is not strong, the company closed due to lack of orders led to the closure. For orders of enterprises, this time easier to hire the right workers. In this process, the ceramic enterprises to achieve a survival of the fittest.
The bad news is that the market environment is not optimistic
Currently the main problem facing the industry is the market decline in purchasing power and the problem of lack of orders. More obvious it is the European Union, Japan, Russia, Turkey and other countries to currency devaluation, resulting in the decline in orders in these countries. Middle Eastern countries depend on oil export revenues strong. As oil prices fell in the past year and remained at low levels, the Middle East guests purchasing power has declined.
While the US market this year has some growth, but imports of American ceramics concentrated in several big hands Mart buyers, Gibson and the like. These large buyers the price is very strong, to stay out of supplier profit margins are very small, and easy long-term supply of business formation is dependent on their orders, and thus more difficult to achieve the transformation and upgrading of enterprises.
After reform and opening with respect to the transfer of manufacturing to China from abroad, the manufacture of porcelain tile is rooted in traditional Chinese culture, ceramics consumer market in the world to accept a higher degree of ceramic complex production process, the industry chain is difficult in other countries round copy. These factors make ceramic enterprises have the confidence to get through the front of winter, will usher in a better future.


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