In the past 2020, the overall pressure on the construction and ceramics industry was huge. As an upstream industry in the production of building ceramics, color material manufacturers have also endured great challenges. On the one hand, sales prices have been falling, and on the other hand, raw material prices have been rising. After experiencing squeeze from both ends, the profit margins of many color material manufacturers have been continuously compressed.
Recently, "Ceramic Information" visited Shandong Province, the world's largest color glaze production base, and learned that the sales performance of most color glaze manufacturers in 2020 increased significantly compared with 2019, but many manufacturers are lingering on the "quantity is priceless" "The slim margin.
The color material factory said that "sales volume increased by more than 20% in 2020"
In the past 2020, although most ceramic companies were under tremendous sales pressure, this did not affect the annual sales of color manufacturers. Several heads of color manufacturers in Shandong told "Ceramic Information" that their annual sales in 2020 increased by more than 20% compared with 2019.
In the interview, the heads of many color material manufacturers in Zibo unanimously said: "Most of the manufacturers that produce color materials for blanks in 2020 are doing good business."
"Although the amount of color materials used by some production areas and some ceramic companies is shrinking, looking across the country, the production capacity of full-body marble tiles continues to grow. On the one hand, the production line capacity is expanding, and on the other hand, some product innovations lag behind The demand for colorants from ceramic enterprises in production areas is increasing. It can be said that this is the main reason for the increase in colorant sales in 2020," Zhang Ning, general manager of Zibo Huagao Ceramics New Materials Co., Ltd. told "Ceramic Information".
Currently, full-body marble tiles are still the mainstream product in the building ceramics industry, and ceramic companies still have huge demand for colorants. Overall, in the past 2020, the demand for color materials in the ceramic industry has continued to increase, stimulating the growth of sales of upstream color material manufacturers. "Ceramic Information" learned that in order to meet production needs, Zibo Jinming Ceramic Materials Co., Ltd. built two new color production lines in 2020.
However, due to fierce competition in the market, many manufacturers have slashed prices in order to seize the market, resulting in continuous reductions in product prices and dragging down the profits of a number of outstanding manufacturers. "Everyone is competing for price. Whoever has the lowest cost will have an advantage." An industry insider in Zibo who did not want to be named said that the profit of color materials is too low now. In order to seize the market, many manufacturers operate at a low profit.
In the current situation of trying to survive, color material manufacturers are unwilling to lose their own market. Faced with low-price competition from their peers, they have to follow the trend and lower prices, which has accelerated the irrational competition in the entire industry. "There is no lowest price, only lower price. " is the best interpretation of the current situation.
Raw material costs increased by more than 30%
According to color material manufacturers, due to the epidemic in 2020, the prices of ceramic raw materials have been rising. Especially after October, almost all raw materials used for color material production are on the rise.
Take cobalt oxide as an example. By the end of December, per kilogram of cobalt oxide had risen from 180 yuan in October to 240 yuan, an increase of nearly 40%. In addition to cobalt oxide, the prices of other products have also risen sharply. Nickel oxide has increased from more than 80,000 yuan per ton to 120,000 yuan, an increase of nearly 50%; chrome green has increased from 18,000 yuan per ton to more than 24,000 yuan, an increase of more than 30%; iron red The price increase is also close to 30%.
At the same time, due to fierce cost competition, ceramic companies continue to lower supplier prices, including colorants, in order to reduce production costs. Under this situation, on the one hand, color material manufacturers are faced with a decrease in the selling price of color material products; on the other hand, they are faced with a continuous increase in the price of raw materials. Any of these reasons further exacerbates the shrinkage of profits of color material manufacturers.
2021 body color and slate color may have new opportunities
For color material manufacturers, it is difficult to sustain without sufficient profit margins. To this end, Zibo color material manufacturers continue to accelerate the research and development and production of high value-added products, and boost product added value and profit margins through the research and development of new products.
According to "Ceramic Information", although the overall sales volume of color materials has increased significantly in 2020, the sales volume of glaze color materials has declined. The main reason is that the large-scale application of inkjet inks has affected the The market demand for glaze colorants has been increased.
“As a color material manufacturer, we must follow the market and only produce color materials for blanks. The profit is too low, so we can only speed up the development of new products.” Wen Zejie, general manager of Zibo Jinming Ceramic Materials Co., Ltd. said, Jinming Ceramic Materials intends to increase its product development efforts, especially the research and development and production of glaze colorants.
Zhang Mingkai, general manager of Zibo Baodian Ceramic Materials Co., Ltd., believes that the entire industry chain of the ceramic industry is currently paying great attention to the cost of raw materials, but product quality cannot be lost. Next, his company still insists on product quality, high-end and personalized development.
In Wen Zejie's view, the color material industry will continue to maintain a good development momentum in 2021, especially the sales of color materials for blanks will maintain a large sales volume. Nowadays, with the rapid development of large slate board products, the color material industry will also accelerate the research and development of related products. It is expected that in 2021, green body color materials and rock slab color materials will usher in very good development opportunities.
(The article is reprinted from Ceramic Information)
