In 2013, the ceramic tile industry once again faced a wave of uncertainty, raising a series of critical questions. Was there an oversupply in ceramic tile production capacity? How long would it take for the industry to transition from rapid growth to a more stable development phase? And was this transition period itself leading to overcapacity? These concerns were no longer just theoretical—they were real and pressing challenges facing the entire sector.
Throughout 2013, the overall performance of the ceramic industry remained relatively stable. According to data from the first ten months of the year, China's ceramic tile output reached 8.08 billion square meters, representing a 5.57% increase compared to the same period in 2012. While this was slightly lower than the 5.8% growth recorded in the first half of the year, the overall trend aligned with initial expectations: that 2013 would be a year of steady growth, with output increasing by around 5%.
Despite the stable figures, industry insiders noticed a clear shift between the first and second halves of the year. Reports from Jiuzheng Building Materials Network indicated that the first half was generally profitable, with some shortages in supply and labor. However, the second half saw a noticeable slowdown, with many factories operating at reduced capacity. In the third quarter, several plants in Jiajiang, Faku, and Zibo were forced to halt operations. The financial crisis in China’s banking system in June may have marked a turning point, signaling a shift from growth to a more cautious approach.
The upstream sector of the ceramic tile industry also experienced significant changes. Equipment manufacturers, particularly those producing presses and kilns, enjoyed a booming year in 2013. New production lines were being launched or planned, and many equipment companies reported strong orders. However, in areas like Jiajiang, nearly one-third of existing lines were idle, while 24 new ones were under construction. This surge in capacity is expected to have a major impact on the industry in 2014.
Meanwhile, traditional color glaze enterprises struggled during the year. The rise of ceramic inks led to a sharp decline in demand for traditional pigments, and falling raw material prices further squeezed profit margins. Many companies found themselves in a difficult position, with declining revenues and rising inventory costs.
In December 2013, the State Administration of Quality Supervision, Inspection and Quarantine released the national quality report for ceramic tiles. Out of 180 products tested across 17 provinces, only 11 failed, resulting in a pass rate of 93.89%. This marked a continued improvement compared to previous years, with rates rising from 73.55% in 2009 to 81.62% in 2010, 86.10% in 2011, and 89.59% in 2012. Several provinces, including Guangdong, Sichuan, Shaanxi, Shanghai, and Henan, achieved pass rates above 90%, while Guizhou lagged at 75%. Overall, the results reflected the industry's ongoing efforts to improve product quality.
In terms of exports, China’s ceramic tile exports grew steadily in 2013. From January to October, the country exported 930 million square meters, up 5.3% year-on-year. The export value reached $6.236 billion, a 27.83% increase, with the average unit price rising to $6.71 per square meter—a 14.8% increase. While the volume growth slowed from double digits to single digits, the rise in unit prices was largely influenced by the RMB’s appreciation.
In 2012, ceramic tile exports accounted for 12.08% of total output, but this dropped to 11.51% in the first ten months of 2013. This decline aligns with the "Twelfth Five-Year Development Plan" for the building sanitary ceramics industry, which aimed to limit annual exports to 500 million square meters. However, it became clear that this target was unlikely to be met during the Five-Year period.
One of the most notable events in 2013 was Brazil’s anti-dumping investigation into Chinese ceramic tiles. The country announced plans to use Italy as a surrogate for calculating normal value, setting a precedent that raised concerns among Chinese exporters. The question remained: who else might follow Brazil’s lead in targeting Chinese ceramic imports?
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