Improvements in ceramic technology will impact the traditional raw materials market.
Release time:
2022-03-04
Looking at China's economic situation in recent years, the domestic economic growth rate has shown a significant downward trend. The domestic steel industry, manufacturing industry, and the real estate industry, which serves as the economic pillar, have all shown a sluggish trend. The increase in market inventory and overcapacity, the impact of the "4 trillion yuan" stimulus package has affected all industries, local governments and private enterprises are engaged in a game of strategy, while the central macroeconomic policies have not made major moves in the economy. At the Two Sessions, Premier Li Keqiang explicitly stated that a controlled and limited economic downturn is allowed. From our perspective, this means that the market is freely carrying out survival of the fittest under the guidance of the domestic government, while supporting micro and small enterprises, it also allows some backward production capacity to be eliminated or even exit the market.
China's ceramic market, as the world's largest producer of ceramics, has seen a continuous expansion of production capacity in recent years, whether it is building ceramics, daily-use ceramics, or sanitary ceramics. Most ceramic products rely on the real estate market. The debt-financing development model of China's real estate industry has led to a continuously increasing risk coefficient for enterprises, while real estate inventory continues to increase. According to national statistics, at the end of 2013, the nationwide unsold area of commercial housing was 490 million square meters, an increase of 35.2% year-on-year.
