A few days ago, "Ceramic Information" learned from a number of glaze companies in Shandong that due to factors such as environmental inspections in the upstream industry and the current poor sales of frit, more than 50% of the frit melting furnaces in Shandong have begun to appear since the end of August. The production suspension may last until late September.
It is understood that before the suspension of production, there were approximately 70 frit melting furnaces (hereinafter referred to as "melting furnaces") in normal production status in Shandong, but currently only about 20 melting furnaces are left in production.
It is worth mentioning that although the production suspension lasted for a long time, "Ceramic Information" learned from many glaze-making companies in Shandong that in the next period of time, the inventory reserves of each glaze-making company are sufficient to support ceramics The company is producing normally.
Environmental inspection
The frit melting furnace has no fuel supply and has stopped production
Currently, the Central Environmental Protection Inspection and Supervision Team is conducting inspections and supervision in many places in Shandong. Shandong is a senior chemical province in the country. Its chemical economic aggregate has ranked first in the country for 28 consecutive years. There are currently more than 6,000 chemical production companies in Shandong Province. According to the previous "look back" and special inspection opinions fed back to Shandong Province by the Central Ecological and Environmental Protection Inspectorate, Shandong still has problems such as weak energy structure adjustment and serious pollution caused by clusters of some small enterprises. Whether these problems have been effectively rectified is also one of the focuses of this inspection.
Affected by this, many coking plants in Shandong have stopped production since the end of August, which has affected the surrounding frit melting furnaces that use coking gas as fuel to stop production.
According to "Ceramic Information", the 70 frit melting furnaces currently in production in Shandong were mainly concentrated in Zibo, Binzhou, Weifang, Jinan, Linyi and other places, and were produced using coking gas produced by nearby coking plants as fuel.
Therefore, for the suspension of production of most frit melting furnaces, many glaze companies said that it was "mainly affected by upstream environmental protection", but they did not rule out factors such as poor product sales.
“Due to recent environmental inspections in many places, coking plants in some areas have limited or suspended production, and eventually the frit melting furnace has no fuel supply and has stopped production.” A person in charge of a glaze company in Zibo who did not want to be named express.
In addition, the person in charge of a glaze-making company in Binzhou, Shandong Province analyzed that the sales volume of frit has fallen too seriously this year, especially for interior wall brick frit.
“On the one hand, the product transformation of interior wall tile manufacturers has led to a significant reduction in interior wall tile production capacity, which has led to a simultaneous decrease in frit sales; on the other hand, the current demand in the building ceramics market is tepid, causing some ceramic factories to suspend production. Or stop the line, and at a certain pointReduces the need for frit to a certain extent. ”
“Due to poor sales, many ceramic factories began to reduce production in July, which caused the inventories of many glaze companies to increase rapidly.” An industry insider in Zibo who did not want to be named told Ceramic Information.
Most frit furnaces will be suspended for 20 days
Inventory can last for more than one month at most
As an important domestic ceramic glaze production base, the suspension of production of more than 50% of the frit melting furnaces in Shandong will naturally attract industry attention.
According to "Ceramic Information", although most frit melting furnaces in Shandong will be suspended for 20 days this time, the existing inventory of most glaze companies in Shandong is sufficient to meet the normal production needs of their customers.
In fact, since this year, especially since July, ceramic factories in various places have stopped production or reduced production to reduce inventory pressure due to excessive inventory pressure. This has, to a certain extent, caused many glaze companies to increase their inventories. .
“Due to poor early sales, many manufacturers cannot sell, so they will have a certain amount of inventory. Even if the frit melting furnace is out of production for more than 20 days, most glaze companies have existing inventory to support 15-20 days. Even the inventory of some glaze companies can last for more than a month, so everyone just takes the opportunity to digest the inventory." The general manager of a glaze making company in Zibo said.
However, some glaze companies do not carry much inventory. First, the current price of raw materials is too high, and second, the sales situation is not ideal, which leads some glaze companies to only have a small amount of inventory. "Our company produces according to orders and does not dare to keep inventory." The general manager of the above-mentioned Zibo Glaze Making Company told "Ceramic Information".
Product profits are swallowed up by rising raw material prices
The glaze company said: “It’s boring”
In fact, since the end of last year, especially this year, the prices of various raw materials have increased, which has greatly pushed up the production costs of various glaze companies. However, it is difficult to increase the price of glazes, or the glazes have increased significantly. This is not as high as the cost increase, which to a large extent has seriously affected the production confidence of many glaze companies.
“Not only are the frit processing plants not making money now, but the glaze making companies are also not making money, and everyone is bored.” The person in charge of the above-mentioned Binzhou Glaze Making Company said frankly.
It is understood that compared with the same period last year, the prices of various raw materials used in the production of glaze have increased. likeThe price of zirconium silicate has doubled, currently rising to 21,000 yuan per ton, and titanium dioxide has risen to more than 13,000 yuan per ton, compared with around 9,000 yuan in the same period last year. In addition, zinc oxide rose to 10,000 yuan per ton, and alumina increased by 15%-20%.
Up to now, the profits of many glaze companies have been swallowed up by the substantial increase in raw material costs. Many companies even said: "They are already in a state of loss, which has seriously affected the sustainable development of the glaze industry."
For many glaze companies, price increases are no longer as simple as how much profits can be increased, but to a greater extent to stop losses. In the words of many industry insiders, this year's glaze industry can be described as "dire straits".
“Now I feel like I’m suffocating. The prices of raw materials are rising, but the price of glaze is difficult to rise. We have no choice but to stop supplying some non-high-quality customers with bad reputation and delayed payment. This reduces some losses," said a person in charge of a glaze company.
(Article reproduced from Ceramic Information)
