The pottery enterprise thunderstorm has entered a high incidence period, and suppliers cannot escape

Mondo Health Updated on 2024-01-31

The thunderstorm of pottery enterprises has entered a period of high incidence ** business is difficult to escape the curse

Qin Wei. The author is a senior technical expert in ceramic glazes) Since 2023, the situation in the ceramic industry has become more and more severe. Judging from the recent third quarter performance report released by a number of listed ceramic companies, 2 of the 7 listed companies lost money, and 5 of the revenue declined, although the specific data was much better than last year, but it still fell into the embarrassment of weak growth. In addition, Dongpeng Holdings' public collection of arrears from Evergrande and other real estate companies has revealed the fact that it is difficult for ceramic enterprises to collect money. A few days ago, Dongpeng Holdings issued an announcement saying that it would collect debts from Evergrande, Sunac and other real estate companies3.2 billion yuan. The litigation and arbitration case cycle disclosed in the announcement is from October 22, 2022 to October 22, 2023, involving real estate companies such as Evergrande, Sunac, Zhongnan Construction, Rongsheng Real Estate, Jinke Real Estate, etc. The head pottery enterprises are living so hard, and the life of the raw materials and color glaze ink enterprises at the lower end of the industrial chain is even more difficult.

In recent years, the thunderstorm in the real estate market has triggered a series of chain reactions, one of which is the thunderstorm of ceramic enterprises. This event had a profound impact on the ceramics industry, highlighting the industry's vulnerability in terms of raw material chains and market volatility. First of all, the collapse of the real estate market directly hit the demand of the ceramics industry. Ceramic products occupy an important place in construction and home decoration, and the stagnation of the real estate industry has led to a sharp decline in demand for ceramic products. This has left many ceramic companies facing a sharp drop in orders and a sharp decline in sales, which increases the risk of them falling into financial crisis.

Secondly, ceramic enterprises have a high dependence on raw materials in the production process, especially for raw materials such as sediment and color glaze. The stability of these raw materials is directly related to the production cost and operational stability of ceramic enterprises. However, raw material manufacturers are often exposed to the risk of market volatility and volatility, which has become especially evident in the context of the collapse of the real estate market. The production cost of ceramic enterprises may increase significantly, thus affecting their profitability. Ceramic enterprises should establish a solid chain of raw materials and establish long-term cooperative relations with businessmen. Including cooperation with classification platforms such as similar color glaze networks, increasing and expanding the catalog of raw material suppliers, and selectively cooperating with strong and reputable suppliers to ensure that the timely and fluctuation range of raw materials is controllable.

It has to be said that the thunderstorm of the real estate market has brought a severe test to ceramic enterprises and raw material suppliers. In particular, most of the leading brand ceramic enterprises have cooperated with large real estate companies, and the top ten in China in this round of real estate crisis have problems, which is a systemic debt crisis. The receivables of the first raw material merchants in the head ceramic enterprises are also the largest. The resulting chain reaction is the most terrible, once there is a head pottery company falls, the ** business under the body is thousands. Not only the color glaze ink raw and auxiliary materials business, machinery and equipment and other ceramic supporting related upstream and downstream enterprises in the next year in April and May is the most dangerous moment.

Original article, welcome to indicate**!

Related Pages