Refractories industry move forward in seeking development challenges

Due to the U.S. subprime mortgage crisis triggered by the global financial crisis. Causing serious influence and impact on the real economy, and any industry are difficult to escape, refractories industry is no exception. Since the second half of 2008, as a result of production and operation situation mutations in metallurgy, building materials, non-ferrous metals industry in China, leading to the contradiction between supply and demand of downstream industries refractories market, thus forcing some refractory enterprises to stop the kiln, limited production, some small and medium enterprises due to reduced orders funds withdrawn from circulation problems and was forced to stop. In order to cope with the global financial crisis, to help enterprises overcome difficulties and ride out the storm, the state has adopted a series of important measures to ensure stable and rapid development of the national economy. So, the overall health of the refractory industry in 2009 will be how? With some questions, this reporter visited China Refractory Industry Association executive vice president and secretary general Xudian Li.

    Reporter: Since the second half of 2008, the growth rate of China's major raw material industry is slowing down. How the overall functioning of the refractory industry? Outstanding problems?

    Xudian Li: 2008 was an unusual year, domestic and international economic situation is complicated, especially since the third quarter, the global economic situation has deteriorated sharply, the refractory industry was no exception. Overall, the 2008 the refractory industry production running smoothly, refractory production of 24,174,800 tons. Where dense shaped refractory products 15,540,800 tons, 472,000 tons of insulating refractory products, unshaped refractory products 8.162 million tons. Dense shaped refractory products: clayey brick 3.6672 million tons, 2.7716 million tons of high alumina brick, silica brick 2.1239 million tons, 1.4379 million tons of magnesia bricks, special refractory products 3815500 ton (which magnesium carbon brick, aluminum magnesium brick 2.639 million tons). In 2008, the import and export trade of raw materials for refractory running smoothly, the National refractory raw materials import and export trade amounted to $ 2.285 billion. Among them, the export volume of 21.46 billion U.S. dollars, import trade volume of $ 140 million.

    Refractory industry production run the main problems: First, the sharp price increases of raw materials and fuel, resulting in refractory products manufacturing enterprises profit margins significantly reduced; two months of the end of 2008, affected by the international financial crisis, production in the first half of The sharp downturn in demand, the more prominent the contradiction between supply and demand, the industry is facing severe challenges.

    Reporter: 2008 Central Economic Work Conference to develop a "capital growth, promote domestic demand, adjust the structure of the overall approach, the impact of the global financial crisis on the real economy is still expanding beyond into 2009. The refractory industry should the measures taken. Difficult to deal with the financial crisis, in order to ensure the healthy and stable development?

    Xudian Li: the refractories industry, 2009 will be a more challenging year, significantly increased the uncertainties in the international economic environment, there are still some outstanding contradictions and problems in the domestic economy. In this regard, we must enhance the sense of a normal state of mind to face the current situation in the challenge to find opportunities, and development. The face of serious challenges in the future, refractory materials production enterprises should attach great importance to and treat the following question:

    First, we must strengthen confidence, actively respond to challenges.

    The economic crisis is accompanied by a cycle of economic development, the future may occur, the State Council executive meeting to develop deployment to further expand domestic demand and promote stable and rapid economic growth in a series of policy measures, will effectively promote stable and rapid economic development.

    The second is to strictly control the total production.

    Total control and adjustment of product structure, refractory products already exist structural surplus in the current situation becomes more prominent. Therefore, the refractory enterprises must strictly control the total production, and resolutely implement to sell production quotas, the focus shifted to adjust and optimize the product mix and promote the optimization and upgrading of industrial structure up, combined with the company's own actual actively promote enterprise innovation and R & D capabilities, variety, quality and development. The same time, it is necessary to strictly control new projects and blind expansion of production capacity.

    The third is to consciously regulate the market order, and resolutely put an end to low-cost competitive.

    Adhere to the product price is lower than the manufacturing cost of the firm does not produce, do not sell; keep the refractory product prices relatively stable, with particular attention to prevent the race to the bottom in a very period unfair competition, jointly create a good the refractory market order and the environment. No contract is determined not to production, would rather cut, limited production must also strictly control the reasonable inventory, in order to ease the production of liquidity. Do not give the purchase price determined not to delivery, uphold the integrity of the first, and must not form a new debt default.

    Fourth, to enhance the cost-conscious, cost management, and maximum control over the manufacturing cost of the product, expanding profit margins.

    Strict control of corporate finance, management and sales fees, efforts to reduce procurement costs, required by the austere life, careful planning, strict management, and do everything possible to reduce the expenses best efforts to keep production costs to a minimum.

    Fifth, we must seize the favorable opportunity to actively promote the consolidation and reorganization, eliminate backward production capacity.

    Especially large key enterprises to seize the opportunity, through competition, mergers, holding joint reorganization, adjust and optimize the structure, promote the improvement of competitiveness.

    Sixth, to enhance the sense of closely tracking the changes in the domestic and international market, timely adjustment of operating measures, and enhance the ability to resist risks.

    Refractories enterprises should actively take the initiative to track changes in the market, to adjust business measures. China Refractories Association will also be in the coming period, arrange special collection, collation changes in domestic and foreign markets and information, especially downstream industries run of the production and operation, and refractory materials import and export trade information. Various channels through the association's website, magazines and letters timely feedback to member companies, to provide a reference for enterprises to adjust their business strategy.

    Reporter: Do you think refractory materials production enterprises in the new year, what should grasp the situation, to seek development?

    Xudian Li: I personally think that the improvement of the market needs to have a process, and certainly take some time, so that all manufacturers have fully prepared solution worries and development, closely follow the changes in the market, take the initiative to adjust the pace of production, grasp the corporate business strategy and make the greatest efforts to reduce the loss of their own affairs well.