—— 每周陶瓷瞭望·周一定期更新 ——
This is Review on China Ceramics, Ken Huo speaking.We bring you the weekly updates on China ceramic industry.
HONGKONG. In 2017, Hong Kong has imported113 million USD worth of tiles, thereof, 42 million from mainland China, at 37% of the total import, and 49 million fromItaly and 8.2 mio from Spain. It’sestimated that in 2018, the imported tiles from mainland China will be lessthan 54 million USD, and 49 million from Italy.
Ken’s comments. In terms of market share in Hong Kong, Made-in-China tiles even had the upper hand in its competition with Italy and Spain. How about the performance in other overseas markets?
ShanxiProvince. The first Shanxi / Yangcheng Ceramics Exhibition took place in midAugust in Yangcheng County, Shanxi Province. According to the organizers, 60thousand visitors, including the professional purchasing delegations from 17countries, attended the event to see themost updated products showcased by more than 170 brand-owners .
Gao’an Production zone, Jiangxi Province. According tothe most updated information, about 1100 press machines are in operation, ofwhich 95% are made by Keda Clean Energy and HENGLITAI , or HLT. It’s predicted that in future theincumbent machines can meet all the needs of production except that the bigpanel production requires higher tonnage machines. With the limited needs for new press, Maitanence andafter-sales services are considered as the future main job in this area.
Ken’scomments. Can we well conclude that the growth opportunity for ordinary pressmachines is quite limited as the production capacity is going down inChina? If you remember the informationwe provided in previous sessions, the machinery and equipment makers are going outbound for their gold mines.
Tile export. The 1stquarter of 2018 has seen the total export of wall and floor tiles at 3.1 million tons, or 76.5% of total export, with the growth rate at 2.3% ; or, valuewise, less than 900 million USD, or 24% of total export at the decrease rate of 8.7%.
Ken’s comments. A paradox？ The quantity , volume or weight of tiles increase while the export revenues are going down. After simple maths, we see the average price go down by 10% for the same weight of tiles. From the angle of proportion, you will see a high percentage of volume and a low percentage of amount. In short, the ceramic tile export in China is still stranded in the low end of the value chain, because the value-added is simply very low.