In 2008, under the backdrop of the poor overall economic environment, the market demand for building materials in China was affected to some extent. However, some experts said that although the building materials industry has been affected by the economic crisis, showing a downward trend, but overall, compared to other industries, the short-term impact of the building materials industry is relatively limited. Relevant experts predict that in 2009, China is still expected to maintain its position as a major exporter of building materials.
08 building materials performance satisfactory
According to statistics, in the first three quarters of this year, the total profit of the domestic building materials industry totaled 69.7 billion yuan, an increase of 34.4% year-on-year. Among them, from January to August, the cement manufacturing industry realized a total profit of 18.2 billion yuan, accounting for 31% of the total profit realized by the building materials industry, an increase of 58% over the same period of last year. In addition, in the first three quarters, the total profit of the industries such as cement products, brick and tile, architectural ceramics, construction stone, waterproof materials, lightweight materials, and non-metallic ore mining and mining industries has maintained a rapid growth.
From January to September this year, China's domestic building materials companies achieved a total industrial added value of 377.6 billion yuan, an increase of 22% over the same period of last year. The sales rate of China's building materials enterprises in the first three quarters of the year was 97.57%, an increase of 0.06% over the same period of last year.
In respect of production of major products, from January to September this year, the national cement output was 1.008 billion tons, an increase of 4.1% over the same period of last year; cement clinker production was 712 million tons, an increase of 2.3% over the same period of last year. Flat glass production from January to September was 432 million weight boxes, a year-on-year increase of 7%; January-August total glass production of 384 million weight boxes, an increase of 7.48%, a decrease of 6.6% over the same period last year. Demand for ordinary flat glass and ordinary float glass declined. In January-August, the production of ordinary flat glass decreased by 6.9% over the same period of last year.
In general, although the global economy was hit by the financial turmoil, compared with other industries, the overall business condition of the building materials industry this year is basically healthy, with normal operation and satisfactory performance.
Cost increase demand lowers performance
Although the building materials industry itself has not been excessively affected by the financial turmoil, as the development of other downstream companies has stagnated, their demand for building materials products has a direct impact on the price of building materials and the performance of building materials companies.
Taking the cement industry as an example, the decline in cement demand has affected the performance of some companies. In the first three quarters of this year, 18 listed companies with main cement business achieved a total operating income of 41.828 billion yuan, an increase of 29.12% year-on-year, and a net profit of 1.551 billion yuan, a year-on-year decrease of 11.84%.
According to statistics, in the first three quarters, 22 listed companies in the cement industry realized a total of 43.765 billion yuan in main business income, an increase of 28.49% year-on-year; in the third quarter, the main business income was 17.274 billion yuan, a year-on-year increase of 29.22%, compared with 27.29% in the second quarter. The increase was slightly higher. In the single quarter and the first three quarters, they achieved net profit of 1.577 billion yuan and 3.926 billion yuan respectively, a year-on-year increase of 13.21% and 32.22%, and the profitability of the industry witnessed a significant decline from the first half of the year.
Look at the glass industry again. The cumulative sales rate of national key glass enterprises from January to September this year was 93.4%. Exports continued to decline. From January to August, glass products exported 178 million square meters, a year-on-year decrease of 17%. In addition, the double squeeze of rising costs and sluggish product prices has also led to a significant drop in the profit rate of glass companies and increased losses. The glass industry began to lose money from the profit at the beginning of the year to the third quarter. From January to August, the total loss of the industry-wide loss-making enterprises totaled 2.01 billion yuan, and the loss of the industry expanded. The number of loss-making enterprises increased from 586 to 716, an increase of 22%.
Affected by the recession in the real estate market and home improvement market, China's ceramic industry has also been significantly affected.
This year, ceramics sales in large and medium-sized cities at home and abroad are not as good as last year. In the first half of the year, both output and sales decreased, which was a decrease of 17% and 21% respectively compared with the same period of last year. Combined with the increase in prices of raw materials, energy, and labor, the increase in environmental protection investment has led to a 10% increase in the production cost of ceramics enterprises. Some small and medium-sized enterprises and technologically backward companies have been unable to sustain their progress. About 10% of the enterprises have closed down.
At the same time, the increase in export costs has reduced the market competitiveness of ceramic companies. According to statistics from the Inspection and Quarantine Bureau of Foshan City, Guangdong Province, from January to October this year, the number of ceramics exported from Foshan decreased by 8.7% compared with the same period of last year. The export value was only 1.08 billion US dollars, slightly higher than the same period of last year. In October, when export activity was active in the past, Foshan Ceramics Exports had a rare drop in value, with exports falling by 10.2% and exports falling by 22.1%. In addition, ceramic companies also face financing difficulties. Currently, about 100 production lines in Foshan stop production. This has also led to the transfer of ceramic enterprises, ceramics enterprises in Foshan, Guangdong Province have shifted to the economically less developed areas and expansion, the formation of a large number of new production capabilities.
In 2009 will still maintain export advantages
China is a major exporter of building materials in the world. The export of natural stone, glass fiber yarns, plate glass and other products account for 40%-60% of the world's trade volume. Exports of cement, clinker, processed glass, kaolin, etc. account for world trade volume. 20%-30%. China has established a certain foundation in the world building materials market. Products have covered more than 100 countries and regions. The average export price of building materials as a whole is only one-third to one-half of the market price in developed countries. Given these advantages, experts predict that China will still maintain its position as a major exporter in 2009.
Apart from the decline in the volume of exports and exports of individual products, most varieties will continue to rise, but the increase will decline. It is conservatively estimated that the export value of China's building materials products will increase by more than 15% in 2009, and the export value will exceed the 20 billion yuan mark.
Compared with 2008, exports of cement and clinker are expected to drop by 15.6%, flat glass exports by 10.2%, sanitary ceramics by 0.8%, and ceramic tiles by 18%.
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