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Building Materials Industry To Be Vigilant Temporarily Not Optimistic About The Second Hal

Xiamen Chine Stone Co.,Ltd | Updated: Oct 21, 2014

Industry experts believe that the first half of the building materials industry to maintain rapid economic growth and steady is the building materials industry in recent years to extend the industrial chain, the development of low-power processing products industry, industrial structure optimization results reflected. But Qiao Longde president of China Building Materials Industry Association, said the economic data does not look up. In the traditional premise of overcapacity, an increase of the more serious problems. 

Caution "grew" 

Building materials industry in the first half-year growth rate has dropped slightly, but overall still maintain a rapid growth. Where traditional cement, plate glass and other industries realized main business income growth of less than 7%; Concrete and cement products, building stone mining and processing, building materials, light industry development trend is good, the main business income to maintain more than 15% growth. 

But Qiao Longde building materials industry in the first half of 2014 the economy was stressed analysis of economic operation analysis and judgment to clarify the concept, the term should be used with caution grew, not simply an increase in output to determine the optimal economic operation inferior. And overcapacity in the traditional premise grew more, indicating the presence of more serious problems. 

Qiao Longde that the building materials industry analysis to determine the economic operation situation, first, to see whether the health of the industrial structure adjustment, the second is to look at new industries, new economic growth point there is no tapped, the third is to see economic growth or reduced. Three aspects of this measure, the overall economic performance in the first half of this year the building materials industry is relatively good. But the building materials industry can not be blindly optimistic, half the number compared with the first quarter, there has been an increase minus three - the main income ratio, gross profit ratio, a decrease of total exports, increase in accounts receivable. Note in the second quarter than the first quarter has slipped somewhat in the second half is likely to continue falling trend. 

Ills "new capacity" 

The first half of 2014, cement, flat glass output grew 3.6%, respectively, 4.7%, an increase decreased significantly. Meanwhile, cement, flat glass industry realized profits rose 52 percent, respectively, 24%, an increase of sales margins were 2.2,0.8 percentage points to the good overall economic operation. 

But with the recent construction projects are built and put into production, cement, flat glass industry, the total capacity is still growing, industry-wide sales rate of decline, increase in accounts receivable, risks affecting the smooth running of the industry is still large, especially in minority areas new projects still blind phenomenon. This trend if not checked, will seriously interfere with the work to resolve the serious excess capacity overall. 

To this end, the Ministry of Industry and Information Technology recently issued an urgent notice requiring firmly curb cement, plate glass industry production capacity. Notice stressed the need to strictly control the increment, efforts to optimize inventory, complete the transformation of economic development mode. MIIT departments at all levels should strictly implement the relevant policies and regulations, shall approve or filing cement, flat glass industry production capacity and on behalf of the project for any reason. From the source to curb production capacity, promote structural optimization. 

For now, the building materials industry in 2014 to run the macro environment is still showing multiple factors intertwined complex situation, China Building Materials Federation Ministry of Information and the person in charge of the economy, economic sectors, depending on whether the second half of overcapacity in the industry to further suppress new excessive growth of production capacity, and the ability to maintain market balance and price stability. June, the national cement, flat glass output growth declined, does not indicate a drop in demand, but building materials enterprises according to changes in market demand and industry overcapacity situation on the active regulation of production, will help ease oversupply, prices drop pressure. 

The person in charge is expected, while the second half of this year, industrial production and building materials to maintain steady economic growth, the growth rate will further decline. Building materials industry annual sales revenue is expected to grow 13 percent. Industry-wide total profit is expected to be flat with last year, a slight increase.

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