Slate Industry

Global Slate Research from the Chinese Market

Officially launched in September

◆Global Slate Capacity Statistics

◆Three-dimensional Research on the Whole Industry Chain

◆Cross-border Cooperation in Stone Furniture

Organizer: Taocheng Newspaper

CERAMIC TOWN WEEKLY

In 2020, the intensive production of slates has changed the pattern of major domestic ceramic production areas. According to Taochengjun's statistics, there are currently 88 slate production lines in the country. Except for Guangdong, which is far ahead with 55 production lines, the gap between traditional ceramic production areas such as Sichuan (Jiajiang), Fujian, and Jiangxi (Gao'an) is not too big.

Who is most likely to become the second largest slate production area in the country? According to Taochengjun's visit and research, considering the market size, location advantages, and costs, different production areas have different advantages.

Today, let's analyze the Sichuan production area:

First, the Sichuan production area is backed by the Chengdu furniture market and focuses on high cost performance. Although it is relatively low-end compared to the Guangdong rock board furniture market, it can form a different market positioning;

Second, the Sichuan production area mainly radiates the southwest and northwest markets. It is difficult for foreign ceramic brands to reduce freight costs. Local ceramic brands have advantages. The emergence of rock boards can also help Sichuan ceramic companies "go global";

Third, Jiajiang ceramic companies have completed the "coal to gas" and Sichuan natural gas is relatively abundant. The gas cost is about 1.9 yuan/m. With the advancement of the national "coal to gas" policy, the competitive advantage brought by gas prices will become increasingly prominent.

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Regarding the iteration of China's ceramic production areas, Bao Jiejun said: "From the perspective of the value of industrial chain integration, there is also a need for the production areas to form a relationship of coordinated development and co-construction of a good ecological chain. When connecting to the decentralized services of real estate centralized procurement, production areas with location advantages and industrial clusters are now gradually becoming important. As long as the production areas solve environmental protection problems, can form a certain cluster, and have certain supporting service capabilities, the value of industrial chain integration will be higher."

Fujian, Jiangxi, Sichuan, who will become the second largest rock slab production area?

According to incomplete statistics from Tao Chengjun, as of now, China has 88 rock slab production lines that have been ignited and put into production. In the layout of rock slab production lines, Guangdong ranks first with 55 lines; followed by Sichuan (Jiajiang), Fujian, Jiangxi (Gao'an), and the gap is not big, with 11, 9, and 9 lines respectively.

It can be seen that in the layout of rock slab production lines, the Sichuan production area has achieved a certain degree of "overtaking on the curve". Next, according to the news from the Western Porcelain Capital Ceramics Association of Jiajiang, Milano, Sofia, Guangle, Jianxiang, Huahong, Jianyou, and Zhufeng have more than 10 rock slab production lines under construction/planning.

China has built rock slab production lines

In terms of the layout time of rock slabs, Sichuan ceramic companies are also relatively advanced. As early as 2012, Emeishan Jintao put into production the first rock slab production line, mainly producing products with specifications of 600×1200×6 (mm). According to Tao Chengjun, at present, the rock slab production lines of Sichuan ceramic companies are mainly based on 750×1500 (mm) and 900×1800 (mm) specifications, and the rock slab production capacity is about 6000㎡-8000㎡. There are not many ceramic companies that can produce rock slabs with specifications above 1200×2400 (mm), with a total of about 3 lines, including: 1 line of Emeishan Jintao (Keda press) and 2 lines of Shengshi Dongfang.

Among them, the Shengshi Dongfang No. 5 production line project undertaken by Delitai is the first 3mm rock slab kiln in the southwest region to be ignited. In the field of 3mm rock slabs, Emeishan Jintao and Shengshi Dongfang each have 1 production line under construction. Emeishan Jintao's 3mm rock slab production line is scheduled to be ignited and put into production in November. The project uses a System press and can produce a maximum product size of 1200×3200×3 (mm).

Market advantages

The volume of Chengdu rock slab furniture market may be several times that of Longjiang (Foshan)

The higher enthusiasm for rock slabs in Sichuan production areas compared to Fujian, Jiangxi and Shandong production areas is not unrelated to the Chengdu furniture market. Some industry insiders believe that the volume of rock slabs in the Chengdu furniture market may be 5 times or even 9 times that of Longjiang, Foshan. Some people also believe that compared with the rock slab furniture market in Guangdong, the Chengdu market is relatively low-end, and furniture companies are almost mainly based on panels, "the positioning will be different."

Take Jintao as an example. It is understood that in its current rock slab sales market, 50% of the rock slabs are used in the furniture field, and 50% are used in wall panels, background walls and other decorative fields. "In fact, the current market share of Chinese rock slabs (in the market) is 70% of medium-sized boards, which are those specialized for dining tables, coffee tables, and TV stations." Li Jingen, deputy general manager of Jintao Ceramics, judged that rock slabs made according to the size of finished furniture can reduce cutting and waste, and the loss rate and yield rate can reach more than 90%.

He also believes that "the people will eventually focus on cost-effectiveness. (Only by rapidly lowering) the price can the market penetration rate of rock slabs be increased. If all rock slabs are sold at several million yuan/㎡, it is useless for ordinary people to afford them."

Ensa Rock is a stone processing company that mainly represents Sichuan rock slabs. According to relevant persons in charge, they have been operating in the stone field for more than 10 years. They started to represent rock slabs in 2018 and are currently mainly sold to the furniture field. "This year, the furniture sales growth of rock slabs is estimated to be three times that of previous years."

"In the past, we were engaged in stone, and now we are engaged in rock slabs. There is not much difference in sales channels. (Our) transformation is very fast." Ensa Rock said. Li Jingen also mentioned, "Most of our customers are glass processing plants and stone processing plants. The reason why these small furniture rock slabs are applied so quickly is that most glass processing plants can directly process them and make money directly without investing in any (new) equipment, so (rock slabs) are quickly applied."

Cost advantage

Jiajiang ceramic companies have all completed the "coal to gas" gas cost of about 1.9 yuan/m

"As long as the production area solves environmental problems, can form a certain cluster, and has a certain supporting service capability, the value of industrial chain integration will be higher." Bao Jiejun mentioned. At present, Jiajiang ceramic companies have also realized the "coal to gas" and all use natural gas.

"Sichuan was one of the first to implement the 'coal to gas' policy. Sichuan ceramic companies have already suffered the impact of the 'coal to gas' policy. Now, when the country is undergoing a new round of environmental protection reshuffles, other production areas have begun to change, and we have benefited." As early as 2017, the Jiajiang production area in Sichuan began to implement the "withdrawal from the city and into the park". In the two phases of the "withdrawal from the city and into the park" project on July 3 and September 30, 2018, 13 ceramic factories in Jiajiang were shut down and no longer resumed production.

The person in charge of a Sichuan ceramic company made an analogy, "The beginning of the 'coal to gas' policy for ceramic companies is equivalent to retreating 200 kilometers in sales radius, because (many ceramic companies) used to compete in the market with low-cost products, and its sales model could not adapt." As of now, according to the Jiajiang Western Porcelain Capital Ceramics Association, there are 60 ceramic companies in Jiajiang County, 84 production lines, and an annual production capacity of 450 million square meters, accounting for 77% of the province, 38% of the western region, and 7% of the country.

Due to the rich natural gas resources in Sichuan, Sichuan ceramic companies also have certain advantages in gas prices. It is understood that the gas cost of Jiajiang ceramic enterprises is about 1.9 yuan/m3. Compared with other ceramic production areas: Foshan has the lowest gas price of about 2.6 yuan/m3; Zhaoqing has the lowest gas price of about 2.25 yuan/m3; Quanzhou ceramic enterprises have a gas price of about 2.796/m3; Tengxian has a gas price of about 2.3 yuan/m3.

"Except for natural gas, Jiajiang has little advantage in other costs, but its location advantage is obvious." Li Jingen said. Some ceramic dealers also said, "Objectively speaking, the Jiajiang production area does not have the raw material advantages of Jiangxi, Henan and other production areas, but it has obvious geographical advantages in the local regional market. The transportation cost of tiles purchased by dealers in Sichuan and surrounding areas from Jiajiang is much lower, the logistics is more convenient, and the dealers' capital and inventory turnover rate are also much higher."

"It is difficult for foreign brands to settle in, and the freight is usually high, so we can 'enclose it'." A Sichuan ceramic company said, coupled with the rise of the rock slab trend, "our rock slabs can now go out." Due to its high cost-effectiveness, Sichuan rock slabs are currently selling very well in furniture markets such as Foshan and Hebei. Taking Hebei Shengfang Furniture City as an example, "half of the rock slab tables on display are ours."

"The most popular ceramic production areas this year are Gao'an and Jiajiang." Bian Cheng, chairman of Keda Holdings, analyzed, "This year, Jiajiang and Gao'an are in a relatively good situation. The first advantage is that the radiation area is the largest, and the profit margin of ceramics is very low. The transportation radiation range is very important to the ceramic industry. The transportation price must have an advantage, and the regional radiation area is a very important indicator."