Anti-dumping + raw material rose 15% ceramic companies will be closed

On March 17, the European Union made an initial anti-dumping decision on ceramic tiles made in China: cases were handled by three Chinese ceramics companies, namely Guangdong Xinruncheng Ceramics Co., Ltd., Shandong Yadi Ceramics Co., Ltd., and Guangdong Weimei Ceramics Co., Ltd. The tax rates were 35.5%, 36.6%, and 26.2%, respectively. The corporate tax rate for cooperative but not drawn was 32.3%. For other ceramics companies, the national tax rate was 73%.

"The Chinese ceramics industry was equivalent to an 'earthquake', and the Chinese ceramics industry's exports to the EU will fall by 50% year-on-year in 2011," said Lan Weibing, director of the Foshan Ceramics Office of the China Ceramic Industry Association.

Another news that hit the ceramics industry is that its upstream pigment industry has risen sharply since the end of last year. Two major factors directly accelerate the ceramic industry's reshuffle.

Industry "earthquakes"

The Blue Guards believes that anti-dumping will have the greatest impact on foreign trade companies that focus on the EU market. Directly affected companies will exceed 80%, of which 15% will face closure and affect tens of thousands of employees. In his opinion, there are two types of companies that are not directly affected by the remaining 20%—one is the production of personalized non-mainstream products, such as Foshan Asgarth Ceramics Co., Ltd. and Asian Ceramics (Holdings) Co., Ltd.; The original product positioning is low-end, and there are still companies that have room for improvement.

Guangdong Dongpeng Ceramics (hereinafter referred to as “Dongpeng Ceramics”) is one of the companies that has been hit hard by this time. Dongpeng Ceramic exports to the EU account for 1/5 to 1/3 of total exports. “At the end of last year, the industry announced that the EU would impose a high anti-dumping tax on China, and the company’s orders were very cautious.” Huang Jianghong, general manager of Dongpeng Ceramics, told the newspaper, “But it still caused us to export a total area in Europe and The value has dropped significantly, and it is conservatively estimated that the total area and amount of exports will fall by more than 10% this year."

She believes: "The tax rate has increased from 0 to 32.3%. For importers, profits have decreased by 32.3%. Generally, ceramic companies have a profit margin of about 50%. For enterprises with a tax rate of 73%, they are definitely losing money. ”

Smyk (13.41, -0.44, -3.18%) (002162.SZ) was less affected, and his secretary Dong Songcheng told the newspaper that the company's products were mainly exported to other countries outside the EU. He believes that “the biggest impact will be on antique brick and glazed tile related companies, many companies will be forced out of the EU market. And about 90% of our products are polished tiles, the EU produces less in the field of polished tiles, technology, Technology is behind China and the market is still large.”

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