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Problems ensue breaking strategy for the stone industry

  • Author:chois.dong
  • Source:www.boreway.com
  • Release on:2017-08-20

Stone has always been considered to be a low threshold and high-profit industries. However, the recent period of time, stone this becomes blurred. Affected by the rate increase, resources tighter, rising costs and other factors, a stone crisis is spreading to Xiamen City and Fujian province, and some smaller scale stone face closure.

    Many problems ensued

    "Because of rising shipping freight, 5% profit on the shipping of import and export. "San Yue Feng General Manager Lin Dongming stone Logistics Center saw reporters get to suit up.

    According to Lin introduced freight has risen since last year, because of State macro-control, steel,Iron ore, Sand, relative to demand, caused by congestedTransportCosts on the perk up. This year after the June governance overload, the original ten overload of shipping traffic to reduce freight cost pressures increased, stone blocks, transport costs and the sharp rise in costs, according to the most conservative estimates, rose above 30%, the original stone blocks of the import and export of 10,000 dollars you can earn $500, now earn a penny less.

    Most imported stones were shipped to Xiamen City Nanan, according to rough estimates, currently transport per cubic meter of stone blocks to head, transport cost increased by 140 Yuan. Meanwhile, stone materials, such as machinery, packaging materials,Abrasive toolsAlong with prices. And rising shipping costs compared with land transport costs rose higher. Hao Sheng Wang Wenhu, the General Manager said, "road freight have risen two or three times! Xia men to Hoi an, treatment of lead per cubic fee is 200 Yuan, and now to 600 Yuan. "

    Shipping a mouth, biting off the stone business, most of the "cake", and rationing led to rising costs after severely biting on the bite. It is understood that the power rationing, enterprises cannot be the timely delivery of orders, often delay business opportunities. The result is not only a customer to cancel the order, some companies are customer claims, losses will not be small.

    But few companies with backup generators, in order to make delivery, own electricity, production costs are also high. According to estimates, if their own power generation, the cost per kilowatt-hour increase of 0.3-0.4 Yuan. If it is a smaller production companies, had power to 50,000 yuan each month, after their own power to pay about 10,000 yuan for their electricity bills.

    Stone raw material shortages in "backyard". At present, apart from luxury stone imports more, ordinary stone because the price is much lower than that of imported, almost all stone. Strengthening mine safety control in China since this year, many mines to stop mining, stone material gap has become apparent.

    Recently, the main mining in Jinjiang, Fujian province, 603 mine, due to the high rate of accidents, were ordered closed. It is said that the 603 mine supplies, supply, causing gaps, had to replace by 623, 633, and other stone, the demand situation, prices have gone up.

    It is understood that mined in haicang 623 stone blocks rising from 720 Yuan to 1000 Yuan per cubic meter, up nearly 300 yuan. Processing of stone, 2 cm plate increases the cost of 10 yuan per square meter.

    Costs soar, while stone finished product prices could not improve. A few years ago, stone market is "water"-heavy, the threshold is lower, so big and small enterprises have been squeezed into this area.

    Some stakeholders believe that, because of too much individual stocks also has a large gap. Inventory enterprise is worth living at all at the moment, can cost more than the current low prices. So, while suffering from the cost of the other, but cannot increase prices. Current impact is likely to be known by next year, when stone export prices may well break through the current prices.

    Is the result of various factors, many stone companies make money. It is understood that the stone of 5%-10% profit in the past now only below 5% are not even. In other words, many companies in the business of losing.

    Stone enterprises have registered in Xiamen now has more than 500 companies, affiliated businesses that are not registered. Stone crises, how to ride out the storm?

    Breaking strategy ready

    At present, more and more restrictions on mining, in order to strengthen the protection of mountain and encourages importing stone blocks, using other people's resources. In fact, imported each year, Xiamen City blocks are growing at a rate of 35%, and the imported choices growing, currently importing countries include Italy, and Spain, and Greece, and Finland, and Norway, and South Africa, and Brazil and other countries.

    Xiamen Trade Development BureauForeign tradeOfficials said currently the stone of the proposed import tariff scheme, has been sent to the national Customs Department of the Ministry. "It is expected the programme to be approved. Before this programme, we visited a lot of enterprises, their desire is very strong. "The official said.

    It is understood that the stone blocks of the tariffs are levied according to 4%. Although only 4% differences, but Xiamen enterprises that benefit a lot. At present, China's stone exports total about $1 billion a year, stone totaled US $750 million a year in Fujian, Xiamen stone of both exports and imports accounted for half of the stone market in the country. Zero-tariff scheme will, to a certain extent to the stone relief. At present, the type of stone processing enterprises have enjoyed import tax exemptions, imported stone and in sales of domestic enterprises will be the biggest beneficiaries. Meanwhile, it will also promote the use of foreign resources.

    Xiamen Trade Development Bureau, said this person, stone is, after all, a regeneration cycle is extremely long or even non-renewable resource, so "zero tariff" aims to encourage imports of stone blocks. Conducive to the development of the domestic stone industry on the one hand, on the other hand can also protect domestic stone resources.

    Meanwhile, the Xiamen stone Chambers of Commerce are also in preparation. XiamenNon-metallic mineralsIMP's Chairman Xu Rongqi said, the Chamber of Commerce is to the needs of industry self-regulation, reduce disorder competition, price coordination. Meanwhile, stone enterprises also intend to take this "twisted" into a rope. "Fighting a lone hand in the past, now we hope to be able to use a sound foreign. For example when in their negotiations with shipping companies, the Chamber of Commerce can help businesses get better prices. "Xu Rongqi said. There is a "movement", in the VIIIInvestmentDuring the fair, the departments concerned will discuss with China Minmetals chemicals import and export Chamber of Commerce, stone export base in Xiamen City.

    Natural stone has become nervous, is a stone one of the causes of the crisis, as a countermeasure, a substitute resinArtificial stoneBegan to appear on the market, and showed a growing trend.

    San Yue Feng General Manager Lin Dongming stone Logistics Center introduce this artificial stone or stone and is doped with resin and stone powder, surface smooth, compared with stone blocks, artificial stones look better in appearance, and canCutting, Random combinations, patch, sheet and plate can achieve seamless, without a trace at the seams, this cannot be done by natural stone, currently cost about one hundred or two hundred Yuan per square meter, with a price difference of natural stone, to some extent, ease the supply shortage of stone.

    But there are different voices that, artificial stone is not very popular in the market. Proud victory, the General Manager Wang Wenhu said there is recognition of natural stone, artificial stone cannot be replaced for the moment.