China's building materials industry economic operation to maintain a reasonable range

China Coatings Network
: Since 2014, China's building materials industry as a whole has maintained steady growth, production growth has remained stable, economic benefits have remained stable growth, transformation and upgrading, structural adjustment has been advancing, and the quality of economic operation has remained in a reasonable range. However, the industry is also facing a continued slowdown in growth, economic growth further narrowed, the economic operation of the down-line pressure continues to increase and other issues.
the key stage of building a well-off society in an all-round way and deepening the reform in an all-round way is not only a period of contradiction but also a turning point of strategic opportunity for the building materials industry. At present, the contradictions and challenges facing the reform and development of building materials industry are more urgent: the traditional industry has serious overcapacity, and the transformation and upgrading is difficult; The pace of development of emerging industries is slow, technology research and development and reserves are insufficient, and the bottleneck has not yet been broken; The adjustment of industrial organization structure is weak, merger and reorganization is not good, and the development layout needs to be adjusted urgently. Environmental protection and energy conservation and emission reduction pressure has increased dramatically, effective proactive measures are insufficient, more than half of enterprises have not yet reached the standard.
economic operation: China'
growth of traditional products slowed down, and overall remained stable. Building materials industry, as raw materials and products industry, is closely related to the overall trend of the national economy. Under the background of the national economy entering the new normal, the building materials industry has changed from the high-speed growth before 2011 to steady growth. According to the latest report from the Information Department of the China Building Materials Federation, in the first three quarters of 2014, the building materials industry achieved revenue of 3.4 trillion yuan, up 12.5% YoY, down 3.2 percentage points YoY from a year earlier, further narrowing the growth rate. From the main business income composition, cement, building sanitary ceramics and other traditional building materials industry still occupies the main position of building materials industry development, playing a leading role in ensuring the steady growth of building materials industry.
profit growth remained stable. The level of profits in the building materials industry continued to grow at double-digit rates in 2014, but at a significantly slower rate than in previous years. The building materials industry above the scale of the first three quarters is expected to achieve a total profit of 223 billion yuan, up 13.8% YoY, still maintain double-digit growth, but lower than the same period last year 10 percentage points, the growth trend narrowed significantly. From the point of view of profit composition, cement and cement extension industry is still the main source of economic benefits of the building materials industry, cement manufacturing industry, concrete and cement products industry accounted for the building materials industry to achieve profit sources of the top two, accounting for a total of 41% of the total realized profits.
production growth slowed. Influenced by the macro-economic environment and the huge technology of building materials products, the demand for building materials market has maintained a growth trend, but the growth rate has slowed down, and the scale growth model has begun to accelerate the transformation. The growth of traditional building materials products slowed, with national cement production of 1.82 billion tons in the first three quarters of last year, up 2.98 percent year-on-year and down 5.9 percent from a year earlier. National flat glass production of 610 million weight boxes, up 3.8% YoY, down 7.5 percentage points from the same period last year.
investment in fixed assets continues to tilt towards extended industrial chain, high value-added and low energy consumption industries, concrete and cement products, construction stones, bricks and construction blocks still occupy the top three investment in building materials. Fixed asset investment in the cement manufacturing industry, sanitary ceramics manufacturing industry, flat glass manufacturing industry, fiberglass reinforced plastics manufacturing industry, glass fiber and products manufacturing industry was negative growth.
the development of the
: the down-line pressure to accelerate, from the quantity of scale to quality benefits. Under the current situation, the traditional industries of cement, flat glass and other building materials are facing the double pressure of slowing market demand growth and overcapacity, and the output and economic benefits of the main building materials products are slowing down, and the downward pressure is increasing. Although the emerging industry of building materials has made some development in recent years, it is still in the initial stage of scale extension expansion due to the low degree of industrial intensiveness and insufficient capacity of scientific and technological innovation. Building materials industry growth rate, profit growth is still derived from the new volume rather than value-added changes. In the national economy into the new normal situation, building materials industry depends on the scale, quantity to benefit the model has been more and more severe test.
the quality of economic operation has decreased
the main business costs, operating costs increased more than the main business growth, the production and operation environment of enterprises has deteriorated. Since 2014, the main business costs of the building materials industry increased by 12.9% YoY, and the total "three expenses" of enterprises increased by 12.6% YoY, both higher than the growth rate of main business revenue, and the gross margin of the building materials industry has been down year-on-year since 2012. At present, the gross margin of the building materials industry is 13.8%, down 0.4 percentage points year-on-year and 0.1 percentage points lower than in the first half of the year.
difficulties in the operation of traditional industries. In the first half of last year, the cement industry profit growth rate increased rapidly, but in the second half of last year cement profit growth continued to shrink, and the market demand is tight, manufacturing costs continue to increase, also make the cement industry in the second half of the profit growth is weak, the industry is facing increasing down-line pressure, cement enterprises production and operation efficiency polarization phenomenon is very obvious. The production and operation situation of flat glass enterprises is becoming more and more serious, the overcapacity of the industry is becoming more and more serious, and the price and efficiency continue to decline. The economic operation of the construction glass industry is becoming more and more severe, 22% of enterprises are in a loss-making state, the loss-making enterprises lost more than 3.7 billion yuan, of which the flat glass manufacturing industry has reached a loss of 36%, the loss-making enterprises reached 2.4 billion yuan.
market outlook: From a macro
, the basis for ensuring stable growth in the building materials industry has not changed. First, the national economy is still growing, including steel, cement and other building materials products demand will increase by more than 2 trillion yuan. Second, China's industrialization and urbanization has not been completed, industrialization, urbanization, information technology, agricultural modernization of the new "four" can still give new impetus to economic growth. Third, the government has introduced a series of policy measures that focus on both the current and the long-term, and the effects will be played out one after another.
from the inside of the industry, structural contradictions and insufficient market demand are still the main factors restricting the growth of the industry. First, the growth rate of the building materials industry slowed down in 2014, but the process of industrialization and the adjustment of the internal structure of the industry still have great potential. Second, the main industries of building materials are facing the problem of overcapacity to varying degrees, and it has become a long-term and global work to resolve overcapacity and speed up transformation and upgrading. Third, the emerging industry from the scale and efficiency is still difficult to bear the heavy responsibility of rapid growth of the building materials industry, but also in the stage of cultivation and expansion. Fourth, insufficient market demand affected the growth rate of economic benefits in the main building materials industries in the fourth quarter, but the overall trend of steady growth in the first three quarters continued. While maintaining steady growth in the industrial production and economic benefits of building materials throughout the country, the growth rate gradually narrowed and continued to decline. China Building Materials Federation experts believe that the building materials industry in 2015 still maintained a steady growth trend, but the downward pressure will continue to enlarge.
expected the price decline of building materials industry cement, flat glass and other building materials major products prices bottomed out to stabilize, building materials profit margin decline trend is expected to be reversed. Total industry-wide profits were flat or slightly higher than last year. The output of major building materials products will continue to maintain a steady growth trend throughout the year, but the growth rate will slow down.