Recently, the "Ceramic Information" "Ceramic Industry Long March" was conducting ceramic tile production capacity statistics in Yunnan Province and learned that currently, affected by multiple factors, the sales pressure of porcelain tiles in Yimen County, Yuxi City has been highlighted. Compared with last year, sales of most manufacturers fell by more than 50%, and some ceramic companies suspended production or changed production. But at the same time, the sales of floor tile products in the Yimen production area are relatively good. The production and sales rate of most ceramic companies remains at 60%-70%, and the production and sales rate of some ceramic companies is even above 90%.
Peripheral products are sold in Yunnan at low prices, driving down manufacturers’ profits
According to the statistics of "Ceramic Information" and "Ceramic Industry Long March", there are currently 13 ceramics production companies and 22 production lines in the Yimen production area. The products cover porcelain tiles, glazed tiles, tiles, large slabs, small floor tiles, Medium board, antique brick, colored brick and thick brick, etc. Among them, there are 6 porcelain tile production lines, 6 glazed tile (including full-body marble) production lines, 4 antique tile production lines, 2 medium plate production lines, and 1 production line each for western tiles, small floor tiles, colored tiles, and stepped tiles.
According to the person in charge of a local ceramics company in Yimen, most of Yimen's building ceramics products were previously sold locally, and only some of the products were sold to markets in Guangxi, Guizhou, Sichuan, Chongqing and other places. But this year, the proportion of Yimen's export products is getting smaller and smaller.
"The main reason is that the competition is fierce, and the cost advantage of selling to other places is no longer obvious. If shipped from Yimen to Guizhou for sale, one square meter of ceramic tiles will increase by approximately 3 yuan in freight. Compared with the price of ceramic tiles produced locally in Guizhou, Yimen The product basically has no cost advantage," said the chairman of Yimen Ceramics.
Local products cannot go out and can only be sold locally in Yunnan, which will undoubtedly further increase the sales pressure on ceramic companies. Not only that, the surrounding production areas have continued to enter the Yunnan market by virtue of their low-cost advantages, resulting in the price of Yimen products falling again and again.
"With the entry of Jiangxi ceramic tiles, the prices of ceramic tiles in many producing areas in Yunnan have been falling. Compared with the beginning of the year, the current price of ceramic tiles in Yimen has dropped by an average of 20%. It can be said that under the current situation, there are many "Manufacturers are operating at low or no profit," said the chairman of the above-mentioned ceramic company Yimen.
Porcelain tile production may be changed or production may be suspended, but floor tile sales are relatively good
Since last year, the domestic porcelain tile market has been greatly impacted by mid-plate. In the Yimen area, most porcelain tile manufacturers have a deep understanding of this, but this year the feeling is more obvious. Compared with last year, due to the impact of the epidemic and sluggish terminal sales, the sales of Yimen porcelain tiles have declined significantly, and the sales of most porcelain tile manufacturers have declined by at least 50%.
It is understood that the reasons for the surge in sales pressure of porcelain tiles in the Yimen production area are that on the one hand, the price of local porcelain tiles is high and the price in other production areas is low, so it is difficult to sell Yimen porcelain tiles to other places; the other is the addition of shipping costs. , the landing price of porcelain tiles shipped to other provinces is much higher than that of other producing areas, thus increasing the sales pressure of local companies.
“Especially after the highways resumed tolls in May, the business of many ceramic companies has slowed down a lot. Products that could have been sold to other places with cost advantages were almost unable to export after the highways resumed tolls. At present, our company's production line has been shut down for maintenance," a person in charge of a ceramics company in Yimen told "Ceramic Information" who did not want to be named.
In order to survive, some ceramic tile manufacturers have to change the production of medium tiles or suspend production. Despite this, most porcelain tile manufacturers in Yunnan still have high inventory pressure.
Compared to ceramic tiles, the current sales of floor tile products are pretty good. It is understood that the production and sales rate of most floor tiles in the Yimen production area remains at 60%-70%, and some manufacturers can maintain it above 90%.
The person in charge of the above-mentioned ceramics company in Yimen who did not want to be named also said that previously, due to the high price of local floor tiles, foreign products continued to pour into the Yunnan market. Now, due to fierce competition, the prices of floor tiles from local ceramic companies have dropped again and again, causing fewer and fewer foreign floor tiles to enter the local market in Yunnan. On the contrary, some floor tiles from Yunnan ceramic companies have also been sold to Guangxi, Sichuan, Guizhou and other provinces.
Many ceramic companies plan to change their production areas for stone paving
There are also ceramic companies setting up warehouses in other places
In the past two years, as competition in the industry has intensified, the polarization of Yimen Ceramics enterprises has become increasingly obvious. High-quality companies continue to invest in upgrading, while weak companies retain existing products. Some thoughtful manufacturers have changed their product lines or upgraded their products, and some ceramic companies have even begun to adjust their product directions, aiming at the R&D and production of large-scale products.
For example, Guoxing Ceramics plans to convert an antique brick production line into stone paving (thick bricks) by the end of the year, starting from 600×1200mm, 750×1500mm, and gradually increasing product specifications to 800×1600mm, 900×1800mm, or even Larger format. At present, there are 3-4 ceramic companies in the Yimen production area that have plans to change their production.
In addition, take the initiative to go out and expand sales channels. It is understood that in addition to adjusting product direction, Guoxing Ceramics is also actively exploring foreign markets. At present, Guoxing Ceramics' products have been sold to Laos, Myanmar and other countries and regions.
Jiahe Ceramics is also undergoing drastic changes and upgrades. It is understood that Jiahe Ceramics is the only ceramic company in the Yimen production area that currently has warehouses or exhibition halls in other places. Since this year, Jiahe Ceramics has opened stores in Chongqing, Sichuan, and Guangxi.Set up warehouses in other places. Therefore, Jiahe Ceramics' sales performance in September was far better than that in August, achieving a 20% growth. The person in charge of Jiahe Ceramics believes that firstly, it is due to stable customers, and secondly, his company's move to set up warehouses in other places has strongly supported the growth of the company's sales performance. In his opinion, his company's sales performance in October will be even better.
(The article is reproduced from Ceramic Information)
