Micro-Control on the Real Estate Leads to the Ceramic Depression in Foshan(8/17/2011)

Due to the micro-control on the real estate, nearly half of company stock over the reasonable level.

For the ceramics industry, the first half year is the traditional off-season, but entered in August, the ceramic sales still no sign of a good turn.

A ceramic called Hongchen vendors said that the recent retail sales decreased one percent, the raw material prices have gone up this year, rising costs, difficult to cut prices.

Relative to domestic sales, the Foshan ceramics can not be optimistic on the export, has suffered the EU, South Korea, Argentina, Brazil and other countries of the anti-dumping investigations, together with the previous situation in the Middle East and other places of unrest, Foshan ceramics export orders there was a substantial number of decline.

Data show that, even if this year's sales is not ideal, but the pre-expansion of production line capacity release, in January to May, the ceramic tile production was 32.4 billion cubic meters, up 17.1%, of which Guangdong ceramic tile production was 830 million cubic meters, up 22.2%; Fujian ceramic tile production of 700 million cubic meters, up 23.9%.

It is understood that, due to rising inventories, many companies have adopted the ceramic part of the production line stopped a way to compress the production, there is a business that we have three production lines, turning off the current one, as far as possible to maintain stocks of enterprises within a reasonable range.

This is mainly due to the market is declining, the impact of market regulation on the ceramic there is a lag effect, since the beginning of the property market turnover decline, leading to lack of demand for decoration, this effect is currently emerging, due to the current property market is still no effective regulation, ceramic shrinking market trend will continue.

Of course, changes in market conditions will result in the re-shuffling of Foshan ceramic enterprises, high brand awareness and strength of the companies will get more opportunities. There is no bad market, only bad business, as long as business innovation and brand to win, do not worry there is no market.
(Author Mosaic and Tile, China Leiyuan 8/17/2011)

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