Report on Operating Condition of Construction Material Industry in First Half of 2011

On August 2nd, 2011, the report on the operating condition of construction material industry in the first half of 2011 was released by the Raw Material Department in the Min-istry of Industry and Information Technology of the P. R. C.: From January to June, the con-struction material industry actively coped with new conditions such as rise of interest rates, increase of deposit reserve ratio drastic rise of crude fuel price, rise of labor cost and RMB appreciation, etc. Through transition of developing pattern, goals like energy sav-ing, emission reduction, restructuring, coali-tion and innovative management, the stable growth of production, price and efficiency on the first half of the year had been real-ized. However, problems did exist, such as the stable falling of the growth speed of in-vestment on fixed asset, drop of the speed growth of construction material export, over-capacity of some construction material and in some areas as well as the excessive growth speed of production volume. From January to June, the production volume of ceramic tile was 4.13 billion m2, an year-on-year growth of 14.3%; in East Chi-na, emerging industries which boast low en-ergy consumption accounted for more than 50% in the investment on fixed asset of the construction material industry; from January to May, the main business cost of construc-tion-material enterprises above the designat-ed size realized the year-on-year growth of 41.1%. In the year 2011, a great number of low-carbon ceramic enterprises and products have sprung up, such as the PP board and QQ board of Monalisa, microcrystal-glass composite plate of BODE, PCBN (Polycrys-talline Cubic Boron Nitride) of Oceano, thin-body tile (quick fire in ultra-low temper-ature) and light-weight ceramic wall paint tile of Shiwan Eagle Brand as well as light-weight external tile of Rongzhou No. 2 Building Ceramics Factory, etc. In addition, matters like glass foam, porous ceramics, glass-bead perlite, spun glass, mineral wool and heat-insulation curtain-wall pottery board, etc have become new hotspots of in-vestment and new spots in the process of in-dustrialization of construction material and operation in China. In 2010, the total pro-duction volume of tile in China reached 7.9 billion m2; from January to June this year, the total production volume of tile in China was 4.13 billion m2. Based on the above-mentioned data and the growth rate of 14.3%, it is expected that, in 2011, the pro-duction volume of ceramic tile will exceed 9 billion m2. Before the end of 2012, this fig-ure is expected to exceed 10 billion m2. 1. Stable Growth of the To-tal Value of Industrial Out-put Has Been Realized According to data released by the State Statistics Bureau, from January to June in 2011, the year-on-year growth of 34.31% of the total value of industrial output (accumula-tive total) by enterprises above the designated size in the ceramic industry had been realized; the year-on-year growth of accumulative speed of growth was 2.06%. However, it was 1% lower than the figure at the end of last year. In the first half of 2011, the realization of total value of industrial output was more or less the same with that in former years. The total value of industrial output realized in each month was higher than the corre-sponding figures in 2010 and 2009, showing the tendency of stable growth. In the first half of 2011, the year-on-year growth in each month had been more than 30%. The total value of industrial output in February was the lowest due to the Chinese New Year vacation. However, the year-on-year growth of 39.07% was the peak value in a single month; since March, the year-on-year growth had been decreasing for three months in a row. In May, the yea-on-year growth of 30.04% was the lowest on the first half of the year; in April, periodic decrease of the total value of industrial output appeared and the decrease was RMB 1.154 billion Yuan comparing with that of last month; since May, the total value of industrial output had been increasing month after month; with a year-on-year growth of 36.61% and the speed of growth recovered, the total value of industrial output realized in June was the peak value in a single month on the first half of the year. 2. Low-Speed Growth of the Production Volume of Ce-ramic Sanitary Ware Con-tinues According to the data from the State Statistics Bureau, from January to June in 2010, the year-on-year growth of accumula-tive production volume of ceramic sanitary ware was 5.98%. The growth speed of monthly production volume was quite differ-ent from the high-speed growth in 2009 for the same period. During this period, the low-speed growth of production volume ap-peared in September of 2009 continues. 3. Sales Volume was Grow-ing Stably and The Pro-portion of Domestic Sales and Export was Steady, According to the data released by the State Statistics Bureau, from January to June in 2011, the year-on-year growth of 35.97% of the output value of industrial sales (accu-mulative total) by enterprises above the des-ignated size in the ceramic industry had been realized; the year-on-year growth of accumu-lative speed of growth was 3.06%. It was ap-proximately the same as the figure at the end of last year. On the first half of the year, the produc-tion and sales of enterprises above the desig-nated size in the ceramic industry were basi-cally balanced. The accumulative rate of pro-duction and sales was 98.77% and the year-on-year growth was 1.21%. As far as sub-industries are concerned, the accumula-tive rate of production and sales of the sani-tary ware manufacturing industry was the highest---102.8%; in the second place was the special ceramic ware manufacturing industry with the accumulative production and sales rate of 99.4%; the accumulative rate of pro-duction and sales of the domestic ware manu-facturing industry was the lowest_96.05%. In the first half of the year, the year-on-year accumulative value growth of shipment (export) by enterprises above the designated size in the ceramic industry was 31.27%; the accumulative rate of domestic sales of 79.2% was approximately the same with that of last year. During the first four months of the year, the domestic sales rate in each month were 79%-80% with slight fluc-tuation; in May, the rate of domestic sales dropped to 77.59%; in June, the rate of do-mestic sales was recovered to 80.29%, reaching the highest point on the first half of the year. Source: www.fstcb.com