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Not only are prices rising, but kilns are also closed for holidays! The ceramics industry is also suffering from falling demand and overstocked inventories...

Release time:2025-04-27click:0

2022 has entered the last two months. The rising prices of natural gas, coal and other energy sources continue to stir up the ceramic industry. The national ceramic tile price increase has struck again. Some ceramic companies have begun planning for the Spring Festival holiday since November... At the same time, the ceramic industry is still trapped in various difficulties such as a sharp decline in market demand and inventory backlog.

Tile price increases are coming in November
Guangdong, Shandong, Jiangxi, Hebei...

Affected by multiple factors such as the COVID-19 epidemic, rising energy prices, and market downturn, starting from November 1, ceramic companies in many ceramic production areas such as Guangdong, Shandong, Jiangxi, Hebei, and Sichuan have announced price increases. Product categories include slate, 800×800mm polished glazed, 600×1200mm, 750×1500mm, wall tiles and tiles, etc. The price increase ranges from 0.05 yuan/piece to 4.5 yuan/piece.

According to the Ceramic Industry News, on November 1, Guangdong Quansheng Ceramics issued the "Notice on the Price Increase of Large-Specification Slate Slate Products" and decided to increase the price of 800×2600×9mm, 800×2600×9mm, The prices of three major product specifications, including 900×1800×9mm and 900×2000×9mm, have increased by 4.5 yuan/piece, 3 yuan/piece, and 4 yuan/piece respectively based on the original price. Previously, Enping Zhujiang Natural Gas Co., Ltd. issued a notice stating that in November, gas consumption companies in Shahu New Building Materials Industrial City will be implemented with limited supply measures, and the gas consumption will be 20% of October.

From the end of October to the beginning of November, some ceramic companies in Zibo and Linyi, Shandong Province successively issued price increase notices. The price-increased products of Zibo ceramic enterprises are 600×600mm, 750×1500mm, with an increase of 0.5~1 yuan/piece; the price-increased products of Linyi ceramic enterprises are wall tiles, including 300×300mm, 300×450mm, 300×600mm, 400×800mm. , the increase is 0.05~0.1 yuan/piece. According to the Taocheng Daily, the northern production areas have entered the heating season, and the cost of natural gas has increased in response to supply and demand. Currently, ceramic companies in Zibo, Linyi, Gaoyi and other places have stated that local natural gas prices are about to increase.

Since November 1, all production lines of Gao'an Ceramics Base have been fully connected and used centralized gas supply. At the same time, the price of local centralized gas supply has risen again. From November 1 to November 15, the price was 0.701 yuan/Nm³. This is the "fifth" price increase of Jiangxi Gao'an centralized gas supply since September. Due to rising costs, many ceramic companies in Gao'an started price increase mode as early as the end of October, including Jiangxi Monet Ceramics, Jiayu Ceramics, Jinglong, Jinyang, Guofeng, Guanli, Xinding, etc.

According to the Ceramic Industry News on November 8, Jiangxi Qinyuanchun Ceramics and Medi Ceramics have successively issued product price adjustment notices: the former will raise prices for the company’s entire range of products from 8:00 on November 26, based on the original price. The price will be increased by 5% to 10%; the latter will increase the prices of all the company's products by 5% starting from November 16.

In addition to rising gas supply prices, Jiangxi production areas are also facing the crisis of rising electricity prices. On November 7, Jiangxi announced that it will appropriately expand the peak-to-trough price difference in electricity prices, that is, electricity prices will rise by 50% during peak hours and fall by 50% during low-peak periods, which is 20% larger than the current fluctuation range. The electricity price during peak hours is 20% higher than the electricity price during peak hours. The notice will be implemented uniformly across the province from December 1, 2022.

In Sichuan production areas, due to the increase in the pre-collection price of natural gas, many ancient building tile manufacturers in Jiajiang and Danling have issued price increase notices, and the prices of green tiles and other products have increased by 0.02 yuan to 0.05 yuan per piece. The price increase notice mentioned that natural gas prices in the Pan-Jiajiang area will increase by 15% starting from November 1, resulting in a significant increase in production costs for enterprises.

We are planning a Spring Festival holiday in November
Some ceramic companies in Guangdong and Jiangxi have begun to suspend kilns

The long Spring Festival holiday is one of the characteristics of the ceramic industry. Generally speaking, the Spring Festival holiday for ceramic companies in previous years ranges from 20 days to one month. However, as soon as November this year entered, some Guangdong ceramic companies issued notices of kiln closures and holidays.

On November 2, a Guangdong ceramic enterprise issued the "2023 Spring Festival Holiday Notice". The ceramic company stated in the notice that in order to further improve product quality and increase production capacity, and better meet terminal demand, the company has made a comprehensive research decision to suspend all production kilns from December 1, 2022 to December 5, 2022. The kiln will be upgraded and renovated, and orders can be placed for loading before January 1, 2023. From January 1, 2023 to February 2023It will be a full holiday until the 1st, and the warehouse will not be able to issue orders and load goods. I will officially start work on February 2, 2023 (the twelfth day of the first lunar month) after the Spring Festival.

That is to say, the ceramics company was preparing to shut down the production line and take employees on vacation in early December, which could last up to two months. Planning for the Spring Festival holiday began in early November, which is relatively rare in the ceramic industry.

Coincidentally, according to the Ceramic Industry News, another large ceramics company in Guangdong also issued a "Kiln Suspension and Holiday Notice" in November. The notice shows that the ceramic company will have a holiday from November 1, 2022 to March 31, 2023 (the holiday does not include sales systems and personnel with other work arrangements). It will officially go to work on April 1, 2023. The holiday time Up to 5 months. This is probably the earliest and longest holiday notice issued by the ceramic industry this year.

In addition, the Ceramic Industry News reported that a ceramics company in Jiangxi also issued a notice on November 4, stating that it was about to suspend its kilns. At the same time, after Jiangxi Gaoan Ceramics Construction Base fully adopted centralized gas supply, production costs have increased significantly. Some ceramics companies will decide whether to shut down kilns in advance for maintenance based on sales in November.

Decreasing market demand and inventory backlog
A wave of layoffs and production cuts broke out in the global home building materials industry

Due to the sluggish terminal market conditions, factory inventory backlog and other factors, since June this year, the ceramic industry has seen phenomena such as ceramic factories shutting down production lines, workers waiting for rotation or taking holidays, and ceramic companies laying off employees and reducing wages. The kiln opening rate in ceramic production areas has hit new lows repeatedly. More than 54 production lines in Jiangxi have been converted to lithium battery production and have withdrawn from the industry.

Looking at the global ceramic industry, similar situations are very common. In July this year, due to the inventory backlog exceeding 50%, Morbi, India's largest architectural porcelain production area, took a holiday and reduced production for one month starting from August 10. 95% of local ceramic companies agreed to take a one-month holiday. In July, Villeroy & Boch announced that it would close its ceramic tile factory in Merzig, Germany, before the end of this year, affecting approximately 200 employees. In May, it was reported that due to the sluggish local real estate market in Vietnam, ceramic tiles were unsaleable and the local ceramic tile inventory was as high as about 80 million square meters. Some companies had production inventories of 2.5 to 3 months.

In fact, not only the ceramic industry, but also the global home building materials industry has entered a "cold period"."Winter", a wave of large-scale layoffs and production cuts has begun.

Recently, Dutch home furnishing giant Philips announced that due to supply chain problems and the impact of respiratory equipment recalls and other factors, in order to improve performance, the company decided to reduce operating expenses and simplify the organizational structure, and will lay off 4,000 people worldwide. At the same time, the company announced its third-quarter performance report with a net loss of 1.3 billion euros. In the same period last year, Philips' net profit was close to 3 billion euros.

On October 20, local time, Kohler issued a statement that it will cease the ceramic business at the Spartanburg County (WSPA) factory in South Carolina, USA, from December 12, 2022, and lay off 133 affected employees. .

According to US media reports, MasterBrand Cabiners, a cabinet and bathroom cabinet manufacturer owned by Fujun Group, announced the closure of its factory in Lynchburg, a city in western Virginia, USA, and more than 250 employees were laid off.

Blum, a well-known hardware accessories manufacturer, previously announced that it would reduce production capacity by 20% to prevent inventory from being further filled and causing logistics problems. The affected factories are mainly the Vorarlberg factory in Austria and the Polish factory. Measures include increasing personnel transfers between factories and reducing overtime hours.

The scale of IKEA's layoffs is even more shocking. As the Russia-Ukraine war escalated, IKEA announced plans to sell Russian factories and lay off workers in mid-June. It is reported that 10,000 of IKEA's 12,000 retail employees in Russia have been laid off.

According to media statistics, since 2022, more than 15 companies in the European and American home furnishing industries have publicly announced layoffs, including home e-commerce giant Wayfair, furniture supply chain and logistics giant GXO Logistics, and German century-old wooden furniture manufacturer Schlapp -Mbel et al. Most of the layoffs are due to considerations such as reducing performance losses, reducing inventory backlogs and closing factories.

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