New Opportunity in stone industry will be for home decoration market “Xinhua Housing” March.21th, 2013

2013-03-22

Stone industry in China started after the Founding of People's Republic of China, we have achieved rapid advances in development  through 30 years’ reform and opening-up stage.

 

Stone Industry has been keeping rapid growth in China for 8 years ever since the year 2005, Stone processing and production amount take nearly 20% from all of the world. China becomes number one in stone production, export and consumption in the world. 

 

At present, stone industrial cluster with large scale is mainly located in Fujian, Shandong, Guangdong, Hubei, Henan, Jiling, Hebei, Guangxi, Yunnan, Sichuan, Xinjiang and Nei Mongol provinces.

 

Guangdong Yunfu, Fujian Nan'an, Shandong Laizhou are the three biggest stone industrial bases in China, taking up 85% of the total production of stone material mainly granite and marble.

In the year 2012, the annual production of marble in China achieved 127,813,616.57 m2,  increased by 29.11% compared with the year 2011. The annual production of granite in China achieved 413,212,120.19m2,  increased by 27.24%compared with the year 2011.

 

Export is inhibited and the new export regulations make things worse.

 In recently years, influenced by European debt Crisis and continued turmoil in some areas in Middle East, the development of stone industry in China slows down.

 

The first three quarters in the year 2012, stone import and export faced asharp fluctuation in China and we were in the floor level. The export presented negative growthof 7.6,-0.1%  In the second and the third quarters.

 

SinceMay2012, the profit of Stoneenterpriseswith certain scale had been facing negative growthfor threeconsecutivemonthsThe Prime Operating Income faced negative growth except in June.

 

Only Until August and September, The Prime Operating Income and profit of Stoneenterprises with certain scale got continuous positive growth and showed slight recovery.

 

However,recentmessagefromthe European Unionsays,sinceapril1st , 2013,the inspection ofwood package imported from China is more strict and frequent,  samplingrate is up to 90%, which is absolutely a heavy stroke for stone exporting in China.

.  According to the analysis of Shen Yulu, who is in international cooperation ministry of China Stone Industry, the immediate influence of increasingthe samplingrate is  the extensionof custom clearance and the low efficiency, which causes additional human cost and material cost. The depressedexportsituationis aggravated. FujianProvince, which is the largeststone production province andexportbase, faced critical strike.It isknownthat there aremorethan 500 stoneexport companies,10 export ports and 10 professionalbuilding material markets in FujianProvince.

 

Return to the Domestic Market and enter to the home decoration industry.

Considering the passive exportmarket,stone exportorientedcompaniesareturningtothe domesticmarket.Compared with the relativeweakness of internationalmarket,Chinese domestic marketdemandis huge. Datashowsthatnearly90% of stoneproductionin Chinais used in our domestic market,andthe averageannualusage grows 9% up.Withthe

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