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China's ceramic industry 'foreign troubles are not flat and worry again'

by:Two Eight     1970-01-01
   

 The European Commission recently issued the 'Notice on the EU's Anti-dumping Investigation on China's Ceramic Kitchen Tableware', announcing an anti-dumping investigation against ceramic tableware and kitchen utensils exported from China to the European Union. Previously, in September 2011, the EU made a final ruling on the Chinese ceramic tile anti-dumping case, levying a punitive tariff of up to 69.7%, and the validity period was up to 5 years, and may be extended as appropriate.

 According to the reporter's understanding, this is the anti-dumping case of the Chinese ceramics industry with the widest scope and the largest amount involved, involving an amount of up to 700 million US dollars, including more than 2,000 enterprises. Take Quanzhou as an example. According to the 2011 customs data, there are 86 enterprises involved in the case, involving a total amount of 24.104 million US dollars, of which 6 companies have more than one million dollars.

 It is worth noting that the previous anti-dumping was mainly concentrated in the field of ceramic tiles. From the anti-dumping case in Indonesia, it has entered the field of applied porcelain. The relevant person in charge of the China Ceramic Industry Association reminded: this anti-dumping measures will have a larger < chain reaction & rsquo;, may bring other countries or regions to follow the trend of anti-dumping on Chinese ceramic tableware. However, what is worrying is that the external troubles are still rising.

 China's ceramic industry is suffering from external problems

 On December 30, 2011, the data released by the China Building Sanitary Ceramics Association showed that the national ceramic tile production in 2011 exceeded 8 billion square meters. In the case of overcapacity, real estate regulation has intensified the further deterioration of the ceramic industry market environment. Under this circumstance, the decline in revenue and profits of ceramic enterprises has become a common phenomenon.

 Export volume declines, meager profit

 Compared with the previous EU's high anti-dumping duties on building ceramics exported from China, daily-use ceramics have a high dependence on overseas markets, accounting for about 11% of China's exports, and more than 2,000 enterprises will be affected. Considering that the degree of mechanization of daily-use ceramics is very low, daily-use ceramics are labor-intensive industries in China, and the number of labor involved is even larger. The person in charge of the China Ceramic Industry Association introduced the reporter.

 The reason why the EU is considering launching an anti-dumping investigation on China's daily-use ceramics is related to the high market share of China's daily-use ceramics in the EU. According to the Ceramics Industry Association, China is now the largest producer of daily-use ceramics, accounting for about 70% of the world's production. The reporter learned from a number of export-oriented ceramics companies in the European Union that China's daily-use ceramics in the EU market share is close to 50%, is the EU's largest importer of daily-use ceramics.

 The sales staff of domestic daily-use ceramics manufacturers told reporters that due to the decline in domestic consumption capacity caused by the EU debt crisis, the export volume of EU daily-use ceramics has dropped by about 15% year-on-year. If anti-dumping is carried out, the export situation is not optimistic.

 Take the example of a $3.5 cup in the EU market. The price that a company sells to an EU dealer is about $0.70, and the company makes a profit of only about $0.1. The foreign dealers have to pay about US$1.50 for shipping and other expenses, and the actual profit is more than US$1, which is 10 times the profit of Chinese manufacturers. The person in charge of the export of European ceramics gave the reporter an account.

 In fact, China's exports of EU ceramics are extremely low. This is true for large enterprises, and other small enterprises are even more difficult. It can be seen that the profits of China's ceramic export enterprises are very low, and the profits are big foreign dealers.

 In this situation, the industry reshuffle will further intensify. Relevant experts admit that the production of ceramic tiles will enter a period of moderate growth in 2012. In general, China's ceramic tile production capacity and output are close to the relatively surplus stage, competition within the industry will continue to intensify, performance may be shuffling, restructuring.

 What is the embarrassment of daily-use ceramics?

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