2017 National Refractory Industry Production Run

The year of 2017 has quietly departed. Looking back at the past year, China’s economic operations have generally remained stable, economic growth has been better than expected, and it has maintained a steady development trend. China's refractories industry, in order to meet the needs of high-temperature industrial development and improve its own development quality as its goal, actively respond to various difficulties and challenges, and strive to eliminate the impact of adverse factors, the industry has always maintained a relatively stable operation order. In 2017, the national production of refractory products was 22,925,400 tons, a decrease of 4.13% year-on-year. Among them, 129.719 million tons of dense shaped refractory products were manufactured, a year-on-year decrease of 4.51%; 514,600 tons of thermal insulation and refractory products were increased, a year-on-year increase of 10.13%; 9.429 million tons of unshaped refractory products were decreased, a year-on-year decrease of 4.27%. The total import and export volume of refractory raw materials nationwide was US$3.310 billion, an increase of 20.45% over the same period of the previous year. The total export of refractory raw materials nationwide was 6,839,500 tons, an increase of 22.78% over the same period of last year. The average price of refractory products for export rose by 11.85% year-on-year, which stopped the trend of price decline for two consecutive years. However, the average average price of refractory raw materials exports fell for 6 consecutive years since 2012 and decreased by 11.64% year-on-year in 2017. In the world where refractory raw material supply is tight, especially in the situation where magnesium-based refractory raw materials tend to be cut off, the export prices of key fire-resistant raw materials such as sintered magnesite continue to decline. This should cause the whole industry, especially in raw material export trade. Corporate concern, analysis, thinking and response.

The theme of this paper is to review the production and operation of the refractories industry in 2017, and to predict and analyze the refractories market in 2018. We hope that through comprehensive analysis and analysis, we can help everyone understand the situation, recognize the situation, grasp the situation, and respond to the situation. The one-year plan is spring. The new era has given us new responsibilities. In 2018 that has already begun, we must step by step to do a good job in our own affairs, consolidate our efforts, improve quality and efficiency, and make due contributions to promoting the sustained and healthy development of the refractory industry and serving the high-temperature industry. .

The overall operation of industries above designated size in 2017 in China

In December 2017, the value added of industrial enterprises above designated size increased by 6.2% year-on-year (the growth rate of the following added value is the actual growth rate of deducting price factors), which is 0.1 percentage point higher than that in November. From a month-on-month perspective, the value added of industries above designated size increased by 0.52% from the previous month in December. For the whole year of 2017, the added value of industries above designated size increased by 6.6% over the previous year.

In 2017, the total profit of industrial enterprises above designated size was 7.52 trillion yuan, an increase of 21% over the previous year, and the growth rate was 12.5 percentage points higher than that of 2016.

In 2017, among the 41 industrial categories, the total profit of 37 industries increased compared with the previous year, with one industry remaining flat and three industries decreasing.

In 2017, the main business income of industrial enterprises above designated size achieved 116.5 trillion yuan, an increase of 11.1% over the previous year; the main operating cost was 98.9 trillion yuan, an increase of 10.8%; the main business income margin was 6.46%, The annual increase is 0.54 percentage points.

At the end of 2017, the receivables of industrial enterprises above designated size were 13.5 trillion yuan, an increase of 8.5% over the previous year; the finished goods inventory was 4.19 trillion yuan, an increase of 8.5%.

In 2017, the cost per 100 yuan of main business income of industrial enterprises above designated size was 84.92 yuan, a decrease of 0.25 yuan from the previous year; the cost per hundred yuan of main business income was 7.77 yuan, a decrease of 0.2 yuan; each hundred yuan of assets The realized main business income was 108.4 yuan, an increase of 3.7 yuan; the per capita main business income was 1.315 million yuan, an increase of 150,000 yuan; the finished goods inventory turnover days was 14.4 days, a decrease of 0.5 days; the average receivable period of accounts receivable was 39.1 days, a decrease of 0.5 days.

Refractory industry production and operation

1. Production operation

In 2017, according to the statistics of the association, the national production of refractories was 22,925,400 tons, a decrease of 4.13% year-on-year. Among them, 129.719 million tons of dense stereotyped refractory products, a year-on-year decrease of 4.51%; insulation and refractory products 514,600 tons, an increase of 10.13%; unshaped refractory products 9,439,900 tons, a decrease of 4.27%.

2. Import and export trade

In 2017, the total import and export trade of refractory raw materials totaled US$3.310 billion, an increase of 20.45% over the same period of the previous year. Among them, the export trade volume was 3.076 billion U.S. dollars, an increase of 19.90% year-on-year; the import trade volume was 234 million U.S. dollars, an increase of 28.31% year-on-year.

1 Export trade situation

The total export of refractory raw materials nationwide was 6,839,500 tons, an increase of 22.78% over the same period of last year. Among them, the export volume of refractory raw materials was 4,694,900 tons, an increase of 31.75% over the previous year; the export trade volume was 1.802 billion US dollars, an increase of 16.42% over the same period of last year.

The total export volume of refractory products was 1,694,600 tons, an increase of 3.29% year-on-year, and the export trade volume was 1.274 billion USD, a year-on-year increase of 15.52%.

The main export of refractory materials: the export volume of fused magnesia and sintered magnesia was 428,300 tons and 884,200 tons (a total of 1.315 million tons), the fused magnesia increased by 30.70%; the sintered magnesite increased by 63.42%; The export volumes of aluminous clay, brown corundum and white corundum were 1,024,300 tons, 641,800 tons and 221,600 tons, respectively, an increase of 15.74%, 15.15%, and 21.44%, respectively; exports of graphite and silicon carbide were 152,400 tons and 384,000, respectively. Tons, an increase of 38.24% and 18.75% respectively.

Refractory products export situation: exports of basic refractory products 920,200 tons, an increase of 3.97%; exports of aluminum-siliceous refractory products 682,000 tons, an increase of 2.95%; exports of other refractory products 110,600 tons, down 0.12%.

2 Imports of refractory products

In 2017, the import volume of refractory products was 31,900 tons, an increase of 66.96% year-on-year. Of which, the imports of basic products were 0.99 million tons, an increase of 62.60%; the imports of aluminum-silica refractory products were 13,400 tons, an increase of 42.05% over the same period of last year; and the imports of other refractory products were 8,550,000 tons, an increase of 140.59% over the same period.

Major downstream industry production and operation

1. Operation of the steel industry

1 Production and Operation of China's Iron and Steel Industry

In 2017, the country’s crude steel production was 832 million tons, an increase of 5.67% year-on-year; steel production was 1.048 billion tons, an increase of 0.82%.

2 World Steel Industry Production

According to statistics of the World Steel Association, in 2017, the global (66 countries and regions) crude steel production reached 1.675 billion tons, a year-on-year increase of 5.5%. Excluding a slight decline in Japan, the CIS is flat, and the production of crude steel in other countries (regions) in the world does not increase to any extent. China's crude steel production accounts for 49.66% of the world's total.

2. Production and operation of building materials industry

In 2017, the country’s cement output was 2.316 billion tons, which was a year-on-year decrease of 0.2%, and the growth rate was 2.5% in the previous year; flat glass production was 790 million weight boxes, which was an increase of 3.5%, which was a drop of 2.3%.

3. Non-ferrous metal industry production and operation

In 2017, the output of 10 non-ferrous metals nationwide was 51.78 million tons, an increase of 3% year-on-year, and the growth rate was 0.5 percentage points higher than that of the previous year. Among them, copper production was 8.89 million tons, an increase of 7.7%, an increase of 1.7 percentage points; electrolytic aluminum production 32.27 million tons, an increase of 1.6%, an increase of 0.3 percentage points; lead production 4.72 million tons, an increase of 9.7%, an increase of 4 percentage points; zinc production 6.22 million tons, a decrease of 0.7%, the previous year was an increase of 2%. The output of alumina was 69.02 million tons, an increase of 7.9%, and the growth rate was 4.5 percentage points higher than the previous year.

Refractory and main downstream industry operating characteristics

1 refractory industry operating characteristics

1 Refractory output continues to decline

In 2017, the national clinker production decreased by 4.13% year-on-year, a decrease of 4.43 percentage points from the same period of last year. In addition to the reduction in output, the demand for refractories for infrastructure projects continued to decrease, and the national environmental protection rectification efforts increased. The main reason for the decline in output was the failure to meet environmental standards and stop production of kiln furnaces. At the same time, the inventory of finished products of enterprises has dropped sharply. Some companies have almost zero stocks, which not only eases the market demand, but also reduces the company’s investment in finished products.

2 The export volume of fire-resistant raw materials and refractory products increased rapidly

In 2017, the export volume of fire-resistant raw materials and refractory products reversed the passive situation that had been declining for two consecutive years since 2015, achieving an increase in export volume, which increased by 31.75% and 3.29% respectively. The export volume of refractory raw materials and refractory products once again exceeded US$3 billion to US$3.076 billion, an increase of 19.90% over the same period of last year.

3 The average price of refractory raw materials continues to decline

The average price of refractory raw materials exports has been declining year by year since 2012, and it has dropped 11.64% year-on-year in 2017.

In addition to the average export prices of fused magnesia and refractory aluminum clay in exports of refractory raw materials, which rose by 12.62% and 7.0% year-on-year respectively, the average export prices of sintered magnesia and natural flake graphite decreased by 6.72% and 6.24%, respectively; The average price of magnesium powder exports dropped by 24.55% year-on-year.

4The average price of refractory products exports has increased significantly

The total average price of refractory exports in 2017 increased by 11.85% year-on-year, reversing the downward trend of prices for two consecutive years from 2015 to 2016. Except that the average export price of other refractory products decreased by 1.51% year-on-year, the average export price of aluminum-silica refractory products increased by 3.60% year-on-year, and the average price of basic refractory products increased by 19.36% year-on-year.

5 The import volume of refractory products increased at a high rate, and the average import price fell sharply

In 2017, the national product import volume increased by a high of 66.96% year-on-year, while the average import price dropped by 17.36% year-on-year, which is a clear trend in the domestic market.

2. Main downstream industry operating characteristics

1 Continuous increase in output

In 2017, the output of crude steel, flat glass, and nonferrous metals increased by 5.67%, 3.5%, and 3.0%, respectively, in major downstream industries, except for a slight drop in cement production (0.2%). In particular, the increase in crude steel production was relatively large, with an increase of 4.47 percentage points over the same period of last year.

2 Product prices continue to rise

In 2017, the prices of major downstream industry products continued to rise. In December, the domestic steel price index averaged 124.05 points, an increase of 24.58 points over the same period of the previous year; the average cement price of P·O42.5 bulk cement was 445 yuan/ton, which was the same It rose 134 yuan / ton, or 17.4%. The average ex-factory price of flat glass was 70.8 yuan per weight, which was an increase of 6.8% over the same period of the previous year. The average prices of non-ferrous metals copper, electrolytic aluminum and zinc rose by 14.7%, 4.7% and 14.5% respectively over the same period of last year.

3 The quality of business is greatly improved

In 2017, the major downstream industries achieved significant results in terms of capacity reduction, total control, strict self-discipline, and cost reduction, and the quality of their operations was greatly improved.

Key statistics of iron and steel enterprises sales revenue 3.69 trillion yuan, an increase of 34.05%, a total profit of 177.336 billion yuan, an increase of 613.57%; the cement industry's main business income of 119.9 billion yuan, an increase of 17.89%; profit of 87.7 billion yuan, an increase over the same period 94.41%; flat glass business income of 75.9 billion, an increase of 20%, a profit of 9.3 billion, an increase of 81%; non-ferrous metal industry's main business income of 6.04 trillion yuan, an increase of 13.8%, a profit of 255.1 billion Yuan, a year-on-year increase of 27.5%, of which the smelting industry realized a profit of 95.3 billion yuan, a year-on-year increase of 51.8%.

3. Brief analysis of the operating status of key enterprises of refractory materials

In 2017, a survey of 66 key enterprises with refractory materials showed that all economic and technical indicators were better than in previous years, with output up 7.2% year-on-year, sales revenue up 23.00% year-on-year, and profits up 109.11% year-on-year, representing a profit increase. Higher than sales revenue growth, sales revenue growth rate higher than the increase in the good operating conditions, the quality of business has improved significantly. The overall operation is relatively stable, but there are still the following problems.

1 Although the operating quality is close to the average level of industrial enterprises in the country, the profit margin of sales revenue of refractory products manufacturing enterprises is still low.

The profit rate of sales revenue of key refractory enterprises was 6.41%, which was 3.87 percentage points higher than that of the same period of last year, but it was still lower than the national average level of industrial enterprises, which was 0.05 percentage points lower.

The profit rate of sales revenue of key refractory products manufacturing enterprises was 5.98%, which was 2.99% higher than that of the same period of last year and 0.48% lower than the average level of the national industrial enterprises.

2 Although the operating quality of fire-resistant products manufacturing enterprises has improved, they still operate at a low profit.

The profits of 66 key enterprises increased by 109.11% year-on-year, which was a considerable increase. However, the achievement of high profit growth is mainly due to the large increase in fire-resistant raw material production enterprises, especially for magnesium-based refractory raw material production enterprises. From the survey results, the profit margins of pure magnesium-based refractory raw material production enterprises are all above 50%. In addition to refractory products manufacturing companies, some companies also have refractory raw material production. Excluding the profits derived from refractory materials, the profit margin of sales revenue of refractory products has increased, but it is far below the national average and is still operating at low profit.

3 loss-making companies have reduced losses

Among the 66 key enterprises, 4 were loss-making enterprises, with a loss of 6.06%, a decrease of 16.44 percentage points from the same period of the previous year; among them, there were 3 loss-making enterprises in the production of refractory products, a loss of 5.0%, and a loss of 27.29 million yuan, a year-on-year decrease of 14.23%. Percentage.

4 The receivables continue to decline, but it is still the main factor affecting the operating safety of production companies.

As of the end of December 2017, the total value of receivables of key enterprises was 12.414 billion yuan, a year-on-year decrease of 10.42%, and the decline was 6.59 percentage points higher than the same period of last year.

Among the 66 key enterprises with refractories, there are still 11 companies with rising receivables, with an increase of 16.7%. Among the five companies whose receivables increased by more than 30% year-on-year, not only did they significantly increase the company’s capital occupation and financial costs, but they also seriously threatened the operating safety of the production companies.