Since the beginning of the new year, the prices of various raw materials have risen across the board, pushing up the production costs of ceramic companies. In fact, not only ceramic companies have also pushed up the costs of suppliers, including the glaze industry. Although production costs have increased by 10% to 20%, the selling prices of glaze companies' products have not increased.
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."
A few days ago, "Ceramic Information" visited a number of glaze companies in Shandong and learned that as the prices of various raw materials continue to rise, and even some raw materials are severely out of stock, Shandong glaze companies are collectively brewing plans to Product prices increased across the board.
01
Strontium carbonate, barium carbonate, zinc oxide...
The rise is fierce
Since the end of last year, the prices of some raw materials have increased. At the beginning of this year, the prices of various raw materials have become increasingly fierce, especially the trend of strontium carbonate, which has caused headaches for many glaze companies.
It is understood that the price of strontium carbonate per ton was still 6,000 yuan at the end of last year, but has now risen to 18,000 yuan/ton. In just a few months, the price of strontium carbonate has increased by as much as 200%.
"After the New Year, the price of strontium carbonate has been soaring, with the price changing every day, and there is still a serious shortage. Our company purchased a batch at the end of April. At that time, the price per ton was more than 9,000 yuan. Unexpectedly, it rose to per ton on May 10. 15,000 yuan, and as of May 24, the price of strontium carbonate is 22,000 to 23,000 yuan," a person in charge of a glaze company in Zibo told "Ceramic Information" who did not want to be named.
Not only is the price rising sharply, but strontium carbonate is now even more difficult to find.
"If you are not an old customer, you can't buy it at all." said the person in charge of the above-mentioned glaze company.
In fact, the recent skyrocketing price of strontium carbonate has already made many glaze companies that produce high-end products very helpless. Some people in the industry even said frankly: "It's very serious, really serious. If strontium carbonate is out of stock for a long time, , which will make it difficult to guarantee the quality of high-end ceramic tiles.”
It is understood that strontium carbonate is mainly used in the production of high-end ceramic tiles. It can effectively reduce glaze bubbles, improve the gloss of the brick surface, and improve the brightness of the brick surface. At the same time, its color development is better than other products, so it is a guarantee for high-end ceramic tiles. Quality first choice. At present, if strontium carbonate is not available for a long time, it will have a considerable impact on the production of related products of various glaze companies, and it will inevitably affect the production of high-end ceramic tiles.
In addition to strontium carbonate, barium carbonate also experienced a large increase. With carbonic acidAs the amount of barium used increases, its price has also begun to rise. Compared with before, the current price of barium carbonate has increased by as much as 30%.
According to the above-mentioned industry insiders, the price of barium carbonate per ton was still more than 2,100 yuan a year ago, quickly rose to 2,300 yuan after the year, and had risen to more than 2,500 yuan by the end of April. "On May 19, the price quoted by Guizhou Hongxing Factory for barium carbonate was 3,000 yuan, and it was out of stock."
"Ceramic Information" found that compared with the tight supply of "cobalt oxide" at the beginning of the year, this year's supply and demand situation of strontium carbonate is also similar.
According to a salesperson from a domestic strontium carbonate manufacturer, the current supply of strontium carbonate is tight, mainly due to the impact of the foreign epidemic. As a major exporter of strontium carbonate ore, Iran's ore production has been declining recently, resulting in a decline in exports. In addition, the demand for strontium carbonate in other domestic industries has increased significantly, especially the production capacity of magnetic materials is currently expanding significantly. However, the usage of ceramics is only the tip of the iceberg of strontium carbonate sales, and cannot be compared with the price of the magnetic materials industry.
“It used to take one to twenty days to deliver, but now it can’t be delivered in one or two months, and the quotations are constantly being refreshed.” said a salesperson from the above-mentioned strontium carbonate manufacturer.
It is understood that the "hard-to-find" phenomenon of strontium carbonate has appeared in large areas, which began as early as early May, and the glaze-making company was out of stock for more than 10 days. "Once the production of strontium carbonate products is discontinued, it will inevitably affect the quality of some high-end ceramic products."
In addition, "the shortage of zinc oxide will have a greater impact, and it will affect all ceramic factories." said the above-mentioned industry insiders. At present, the price of zinc oxide is also rising all the way, from 12,000 yuan per ton a year ago to 17,000 yuan now.
02
Raw materials, freight, labor, and melting costs have all increased
The glaze company said: Profit has reached "zero"
In recent years, due to factors such as national environmental protection regulations, the supply and demand for raw materials in some mines have become tense, and price increases have become the norm.
Compared with last year, so far, the price of Yantai feldspar has increased by 15%, and the price of Henan potassium feldspar has increased by 10%. Both are now in short supply. Although the price of dolomite, calcite and other earth materials produced in Guangxi has increased by 15%, all mines are now suspended and face no supply. In addition, the price of wollastonite has increased by 20%, the price of chemicals has increased by more than 20%, and the price of burnt earth has also increased. Already increased, labor wages have increased by 10% to 20%...
The general manager of a glaze company in Zibo said that due to the closure of some mines, many glaze companies had to change suppliers, which would also lead to an increase in freight costs related to glaze companies.For example, the freight per ton used to be 120-130 yuan from Henan to Zibo, but now it costs 300-400 yuan to transport from Inner Mongolia to Zibo, which means an extra expenditure of nearly 200 yuan per ton. Up to now, for every ton of surface glaze processed, the company's cost has increased by dozens of yuan compared with the end of last year, while for every ton of polished glaze processed, the cost has increased by 150-200 yuan.
"With the current product selling price, we simply cannot make money from these increased costs. Coupled with the increase in raw material prices, each of these items is enough for the glaze company to not make money, or even lose money." The above-mentioned glaze said the general manager of the company.
It is understood that due to the change of suppliers, the financial strength of each glaze company is also a major test. Glaze companies generally reserve 1-2 months of raw material inventory, which requires a large amount of cash to be prepared for new suppliers. The slow return of money from customers is also a major flaw that glaze companies urgently need to solve.
In addition to the increase in raw material costs, labor wages have increased by at least 10% this year. That's not all. The frit melting fee has also risen from 350 yuan per ton at the beginning of the year to 480 yuan now, and furnaces are hard to find.
"The melting fee for high-end frit is even higher. Last year it was 400 yuan per ton, and now the quoted price is 800 yuan... These are constantly pushing up the production costs of glaze companies, resulting in many companies making no profits or experiencing problems. Negative growth." said the general manager of the above-mentioned glaze company.
03
Plans of multiple glaze companies in Shandong
Price increases for products will be implemented from June 1st
It is difficult to increase prices, and it is difficult to reach the sky.
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 the above-mentioned industry insiders, this year's glaze industry can be described as "difficult".
“Now I feel like I am suffocating. The prices of raw materials are increasing, but the price of glaze has not increased. We have no choice but to stop supplying some non-quality customers with bad reputation and delayed payment in order to reduce the price. Partial loss". The general manager of the above-mentioned glaze company said.
According to "Ceramic Information", the price of glaze has not changed from the beginning of the year to the present. The main reason why it is difficult for glaze prices to increase is that the current market competition is too fierce.
"They are all holding on for dear life because they are afraid of losing customers." The above-mentioned industry insiders who wished to remain anonymous spoke frankly. In his view, on the one hand, due to the impact of mid-board, some glaze companies that originally produced interior wall frits switched to producing floor tile frits in order to compete for customers and entered the market at low prices; on the other hand, in order to ensure that customers were not lost, eachLarge glaze companies are struggling to hold on, leading to intensified vicious competition.
Although the current cost of glaze is higher than the selling price of the product, it is indeed difficult to increase the price of glaze products. If it goes up, you might lose customers; if it doesn't, you're obviously throwing money into a bottomless pit.
Under this situation, glaze companies have to consider increasing product prices. To this end, a glaze company in Zibo has held a two-day meeting to study the next price increase.
According to "Ceramic Information", in order to ensure the company's sustainable development, many companies in Shandong have decided to increase prices for their products in the near future (June 1) through joint consultations.
Many glaze companies have expressed support for this price increase decision, "In fact, it should have been increased a long time ago. You could persist if you didn't make money in the past, but it is not feasible to operate at a loss for a long time. At present, the comprehensive cost of glazes The increase of at least 10% to 20% has already wiped out the profits of glaze, and many companies have even experienced negative profit growth.”
The general manager of the above-mentioned glaze company said, "In the past, we were just shouting, but this time it will really increase. We dare not touch this approach of reducing quality. If we continue to lose money, we would rather withdraw from the industry."
(This article is reproduced from Ceramic Information)
