2011 Abrasives Industry Operation and Trend Analysis

In the first half of 2011, as the country accelerated the transformation of economic development methods, strengthened macroeconomic regulation and control, accelerated the adjustment of industrial structure, and further curbed the implementation of a series of macroeconomic policies such as inflation, the growth of the national economy changed from policy stimulus to autonomous growth in an orderly manner. The national economy has maintained a healthy and steady development. The growth rate of GDP was 9.6%, the total import and export volume increased 25.8% year-on-year, and both maintained a relatively high rate of growth. The abrasive abrasive industry, which is the raw material and tool for industrial development, has maintained a steady development momentum under the overall development of the national economy. However, due to rising raw material costs, rising fuel prices, increased transportation costs, rising labor costs, and escalating costs, the company’s profit margins have decreased, and the production of brown corundum and green silicon carbide has caused excess capacity, which has caused product prices to fall, and the development of SMEs has been affected. Great influence. Accurately speaking, the production and sales profits of high-grade and high-quality products are relatively good, and the products and quality of the Dalu Road are greatly affected.

one. Industry operation in the first half of the year 1. The overall growth of production and sales is rapid, but the growth rate of various types of products is not balanced. According to statistics from the industry, the total industrial output value of the current price in the first half of the year increased by 33.67% year-on-year, and the sales revenue of the products increased by 29.46% year-on-year. However, from the perspective of several major categories of products, the growth in production and sales was uneven. The growth of brown corundum was 3.84%, that of white corundum was 59.24%, that of green silicon carbide was 14.73%, and that of black silicon carbide was 3.19% year-on-year. Ceramic grinding wheels were used for grinding tools. The year-on-year increase was 8.90%, the resin grinding wheel increased by 11.29%, the rubber grinding wheel increased by 105.19%, and the grinding stone increased by 16.02%.

2. Product prices oscillated slightly, and profit growth narrowed. In the first half of the year, the cost of brown fused alumina, white fused alumina, and black SiC abrasives changed little compared with 2010, and the ton price fluctuates between 50 and 100 yuan. Green silicon carbide varies greatly.

Abrasives have more varieties and prices vary, not listed one by one. The price of ordinary abrasives does not change very much, but the quality is good and the price of high-grade abrasives rises. The cost increase rate is large. According to statistics, the cost of product sales increased by 32.7% year-on-year, the administrative expenses increased by 44.93%, the financial expenses increased 101.62% year-on-year, the total wages of employees increased by 24.21% year-on-year (about 10-15% increase in individual wages), and the sales revenue 29.46% growth, total profit growth of 20.19% year-on-year.

As the cost keeps rising and the price increase is not large, the profit rate of the company is not high; the profit rate of high-grade abrasives is relatively high.

3. Exports are stable and prices increase, but growth slows.

Brown corundum exported 332,000 tons, amounting to 214.1 million US dollars, compared with 323,500 tons in 2010, amounting to 171.3 million US dollars, an increase of 2.65% and 25% respectively. FOB was US$644.75 per ton, which was an increase of 21.78% from US$529.43 per ton in 2010.

Silicon carbide exports 110,300 tons, the amount of 275.7 million US dollars. In the same period of 2010, it was 106,200 tons and the amount was US$186.8 million. The year-on-year increase was 3.86% and 47.63%, respectively, and FOB was US$2,499.26 per ton. In the same period of 2010, it was US$1,758.27 per tonne, an increase of 42.14% from the same period of the previous year. The export of abrasives was 97,300 tons, amounting to US$142.5 million. The same period in 2010 was 76,500 tons, amounting to 103.1 million US dollars. The year-on-year increase was 27.31% and 38.35% respectively. In 2011, the FOB was 1464.83 US dollars per ton. In the same period of 2010, it was US$1,343.94 per FO ton, up 8.67% year-on-year.

II. Analysis of industry operations 1. The overall situation of the downstream industry is relatively good, and the purchase of industrial products has been increased. According to relevant statistical data, steel output in the first half of the year was 350 million tons, a year-on-year increase of 9.6%; building materials industry cement was 951 million tons, an increase of 19.6% year-on-year; flat glass was 380 million weight boxes, a year-on-year increase of 19.1%; and building ceramics production was 4.13 billion square meters. , a year-on-year increase of 14.3%, a total of 76.52 million sanitary ceramics production, an increase of 3.7% year-on-year; production of non-ferrous metal products increased by 7.27% year-on-year; shipbuilding increased by 4.4% year-on-year, and automobile production increased by 2.48% year-on-year; overall the international economic situation picked up slowly. The export trade increased steadily, with the production and sales volume of the industry rising in the first half of the year.

2. The transformation and upgrading of enterprises, adjustment of product structure, increase in the output of high-quality products, enhanced market competitiveness, and increased the ability to resist risks.

In the first half of the year, the company encountered many difficulties in its operation. In the first half of the year, the state suppressed inflation, raised the reserve ratio by 6 times, and increased the interest rate by 5 times. The enterprises generally feel that the funds are tight, and the payment is mostly adopted for acceptance, which affects the operation of the company to a certain extent; At the beginning of this year, some companies did not grasp the situation accurately. In the brown fused alumina smelting enterprise, the green silicon carbide smelting enterprises increased the smelting capacity, but the market demand was not high, resulting in unsatisfied products, the price of brown corundum products could not rebound, and green silicon carbide products. (Block, powder) prices fell sharply. In May, the state raised the price of industrial electricity and the cost rose again. Many smelting companies had to stop production. According to the survey, the main producing areas of abrasives, the Pearl River Delta in the Yangtze River Delta, etc., many companies have also cut production or stopped production due to insufficient power supply, and the reduction averaged over 30%. However, in the survey, it was also found that some large-scale or special-product-producing enterprises were not affected significantly, output did not drop back, prices did not fall, and the main reason was that these enterprises were firmly grasping the national policy orientation, ie The transformation and upgrading of equipment, increase the research and development of new products, abandon some common products, produce abrasive products used in high-end areas, has partially replaced imported products in the fields of aerospace, auto shipbuilding, steel, railways and so on. The 1.6-meter wheel produced by Jiangsu Subei Grinding Wheel Factory Co., Ltd. has been designated by the Shanghai Machine Tool Plant; the 1.2-meter resin wheel jointly developed by Guangdong Genesis and the School of Materials of Henan University of Technology has been used by several steel mills. Ningbo Dahua Grinding Wheel Co., Ltd. The use of upstream and downstream companies to cooperate, bundle development methods, reduce costs and increase market competitiveness. According to the analysis of the statistical data of 34 grinding tools, 24 of them have risen in output, output value and profitability. The remaining output and output value have decreased slightly but the profits have risen. The main reason is that these enterprises adjusted their product structure. The number of products increased, the number of low-grade products decreased, and the company’s ability to resist risks increased.

3, energy-saving emission reduction effect is obvious. Many companies have increased efforts to retrofit old equipment, built automated production lines, and developed integrated thermal energy utilization to replace old equipment and extensive production methods. From the perspective of the operation of dozens of transformed companies, the effect is obvious. The new equipment generally saves about 30% to 40% of energy. These enterprises have won awards ranging from hundreds of thousands to millions of local governments in energy saving and emission reduction.

4, excess capacity, product homogeneity serious. In the first half of the year, the growth rate of new corrugated alumina enterprises that have been expanded or expanded has slowed down, but the production capacity of 3.5 million tons has not been reduced. Once the production plants are put into production, the production capacity will still increase. There is not too much change in the original business, and production capacity has not been affected much. In the first half of this year, the operating rate in the Henan region was only one-third, and in Shanxi it was only one-half, relying mainly on the supply of Guizhou. Market demand has not been tense, and some companies still feel that the products are unmarketable. The reason is that the market demand is saturated. In fact, it is the surplus that cannot be sold. Green silicon carbide products are currently used in large quantities as solar cutting blades. Due to slowing demand in Europe and the United States, Japan’s early earthquakes affected some domestic solar energy production companies that did not have sufficient production capacity. Therefore, sales of green silicon carbide powder did not reach expectations. However, some manufacturing companies, and other industries that choose to transform green SiC production, have overestimated market demand, mass production or large-scale plant construction. At present, the production capacity has reached about 1 million tons, and the expected production capacity at the end of the year is about 1.5 million tons. Together with the 250,000 tons of recycled materials, it has exceeded the demand for total domestic and foreign demand of 550-600,000 tons, resulting in a low price or even a substantial decline. , Block from 9,500 yuan / T-10,500 yuan / T down to 8,000 yuan / T or so, the powder from the original 27,500-28,000 yuan / T down to 23,500 yuan / T in the second half.

Third, the second half of the trend 1, to talk about the second half of the industry economic trends, industry colleagues must have a clear understanding of the ideological, how companies develop, around what development? This year marks the beginning of the “Twelfth Five-Year Plan”. The National Twelfth Five-Year Plan clearly supports strategic emerging industries. At this stage, it focuses on cultivating and developing energy-saving, environmental protection, new generation information technology, biology, and high-end equipment manufacturing. New energy, new materials, new energy vehicles and other industries. We should make a fuss around the country’s industrial policy, linking the transformation of the enterprise, research and development of the product with the industries supported by the state. The “12th Five-Year Plan” of the industry was interpreted at the last meeting. In the “Twelfth Five-Year Development Plan for the Machine Tool Industry” approved by the Ministry of Industry and Information Technology in July, the focus was on the development of abrasive products for abrasive products. Machine tools supporting high-grade abrasive (high-efficiency, high-speed, heavy-duty, precision and ultra-precision grinding tools, new low-temperature bonding agent, etc.). The key points of the development of the industry have been clarified, and the ideas for the development of the industry have become clearer. The abrasive tool has been very clear. Some companies ask what is the deep processing of abrasives. Briefly talk about the abrasives needed for the manufacture of high-grade abrasives, the abrasives needed for the manufacture of high-grade coated products, the calcination of abrasives, the rhodium plating, and the micro-powder for the solar industry. The abrasives required for semiconductor manufacturing can be extended according to the needs of the development of high-end products.

The situation will not be eliminated soon. Overcapacity and homogenization of low-end products will become less and less acceptable to the market. Especially after entering July, the situation is even more severe. The five southern provinces continue to experience droughts, especially in Guizhou, and in July Now that electricity is seriously insufficient, all smelting enterprises have stopped production. Some companies use peaks and valleys to smelt a few furnaces. The quantity is too small and shipments are difficult. Given the tight coal supply, the supply and demand situation will become more severe in the next two years. The tightening of monetary policy has made it difficult for companies. The central government has policies to support small and medium-sized enterprises, but it will be inclined to choose companies that have potential, products that are competitive, have the ability to repay loans, and have good reputation. The law of the market is ruthless, the survival of the fittest, some small enterprises producing low-grade products are facing a situation of being eliminated, there is a possibility of appreciation in the second half of the year, the world economy is recovering, but the recovery process is very unstable. Vulnerability, economic growth in Europe and the United States has declined, and the European economy has experienced a debt crisis. This will affect the pace of global economic recovery and will have some impact on exports. Then the alternative products have occupied part of the market. Our downstream industry is growing, but the purchase volume of our industry products has not increased much. In particular, in the case of refractories, the homogeneous material of alumina has entered the refractory industry, which will in turn expropriate. Brown fused alumina part of the market. Diamond wire saws were originally produced in Japan. They were already seen in the machine tool exhibition in April. At present, there are several superhard product manufacturers in China that have already put into production and will surely have an impact on the market of green silicon carbide powder. In fact, these unfavorable factors are not a bad thing. They are faced with a grim situation and can make the bosses of the enterprises who are in adversity think calmly, plan again, start their own business again, and make the enterprise a new level.

3. Some suggestions (1), follow the national policy, and adjust the industrial structure in a timely manner. Corporate leaders must be clear on this point, otherwise the living space will be squeezed and eliminated. After years of efforts, the adjustment pattern of abrasives, silicon carbide, and micro-powders has been basically clear. Some enterprises have already adjusted their product structure, abandoned their original products, abandoned non-competitive low-end products, and developed high-end products. Enterprises have embarked on the path of sound development, and a large number of companies are still struggling. It is recommended that competent companies, joint ventures with institutions, R&D institutions, be willing to invest some money, research and develop new products, put them on the market as soon as possible, and produce benefits; they can also strengthen the alliance between companies and bring their advantages into full play. Large-scale production wins the attention of the government, and also increases the market's ability to resist risks; there are also some companies that can take a change of business (in fact, some companies have already done so).

(2) Targeted production of marketable products. We can use this period of time to conduct in-depth surveys of downstream companies to see what quality products the other party needs and to increase the targeted production of the products. The key to making large companies strong and small businesses doing well is to produce and sell products. The production of unique products can be done. At a low level, there is no way out with the big stream. The downstream industry involves a very wide range of areas. If we go deep into one area and do fine work and fine work, companies can survive and develop.

(3) Make great efforts to save energy and protect the environment. This is one of the emerging industries that has been intensively cultivated and developed at this stage. It is closely related to our industry. There are also a series of environmental pollution problems in the production process of abrasives and abrasives. There is great potential for excavation. The future abrasives mill With production improving in energy consumption, energy saving and emission reduction equipment and technology, not only can the company reduce costs, the key is to comply with national industrial policies, to win the market, to win government support, and companies have the fulcrum for development.

The new products are waiting for us to research and develop. The new road is waiting for us to explore. We must open up a new world of abrasives industry under the guidance of the country's emerging industry policy.