The Main Reason for Increase in Volume LED to Exports

Enterprise disorderly fall in price competition is the main reason for increase in volume led to exports, the industry believe that such an analysis. At present, China Stone irrational industrial structure, business size, skill level and distribution of showing "small, scattered, chaotic" characteristics, mainly in small-scale mining and processing enterprises mainly the number of small businesses accounted for 9 percent, less than 5% and medium-sized enterprises . As small-scale enterprises generally, the low level of technology, product homogeneity is serious, so enterprises can only compete through lower prices with each other, trade order and very confusing. In addition, the mining methods are backward, lower utilization of stone. To reduce the initial investment of some enterprises, most adopt a "zoom shot, digging foot" of the original work of mining, large pieces of stone can not be used in the bombing of processing specifications sheet, can only be used as industrial fillers - superfine heavy calcium carbonate powder raw material, or simply discarded, making only a few percent utilization of stone, a huge waste of resources. Additionally, due to the low barriers to entry of mining companies, resulting in small-scale enterprises, and has long been inadequate investment in mining, mining methods and technical equipment is not high, leading to the current size of stone mining enterprises, technical level and distribution of showing "small, soil, loose , arbitrary "characteristics, and the development of China's stone industry very uncoordinated, extensive processing of stone resources and ecological environment caused severe damage. As many enterprises, scattered, small scale, resulting in a lack of ability to withstand market risks and the ability to participate in international competition, while the current lack of differentiation of stone products, stone products, poor sense of equity, mutual imitation, vicious price competition in serious condition, low prices underscores. For a long time, the accumulation of stone enterprises lack the capacity and self-development, the structure is irrational, management is extensive, but in a large range of domestic and international economic boost when the economic benefits it better, but by its own ability to achieve effective weak. At the same time, long time, China's export enterprises pursue stone is to win, goal is to export more, as long as access to international markets, whether profitable or not, everyone is happy. The extensive mode of growth in the international stone market are good, when export growth in the market when the market is not good, it still can grow, the result is a heavy price to pay benefits. China's stone exports to the reality of the current point of view, the rapid development of domestic stone enterprises in recent years, foreign trade diminished strength, but there's problems should also be caused by stone business attention. Most of the domestic export enterprises to take extensive business competition, their own way, relying on that price, the number of fight, fight favorable conditions to expand foreign trade, leading to price competition, the formation of increased exports, the adverse situation of economic decline. Mainly because of the lack of effective guidance and coordination of the industry, resulting in product demand uninformed, vicious price competition, and cannibalism; this industry, the problem of poor coordination of a serious impact on business development and economic efficiency, resulting in "high yield no harvest "phenomenon. Price competition led to poor efficiency of China's stone exports. In recent years, China's stone exports far less than the amount of export volume growth rate. It was estimated that the export value of China's growth rate lagged behind the stone volume growth of 5.1 percentage points. Many of the major species caught in the export of more benefit less the cycle. Low export prices, profit margins of small, part of the export profits of enterprises rely on export tax rebates and other preferential policies to achieve. Past 5 years, the stone business benefits generally are relatively low, the majority of enterprises in the export business of maintenance, lack of profits support, coupled with factors that increased consumption of high export costs. Although the stone industry in China in recent years, a good momentum, but from the Chinese stone industry faces macroeconomic environment, the electricity shortage, land shortage, labor shortage and environmental protection, raw materials, the cost of government services increases, the signs are that China Stone sharp rise in the cost of an element of the stage, plus the stone business increasing global competition, leading to stone along with the advent of low-profit era. Meanwhile, the export of stone products in China are generally controlled channels in the hands of foreign, foreign to the product price low, all of which are currently stone export the root causes of low economic efficiency of enterprises. Source: en.hbjianyuan.com