Summary 2015 is gone, and 2016 comes one after another. The refractory enterprises that have experienced severe overcapacity and the economic downturn have been exhausted and overwhelmed. The unfavorable news brought by the sluggish downstream enterprises has made many refractory enterprises unable to start this year...
2015 is gone, and 2016 comes one after another. The refractory enterprises that experienced severe overcapacity and the economic downturn have been exhausted and overwhelmed. The unfavorable news brought about by the sluggishness of downstream enterprises has made it impossible for many refractory enterprises to start construction this year, plus the mountains piled up last year and even before. With regard to the implementation of payment, many refractory companies are already in a position to be ignorant. Has your business started?
According to statistics from the statistics: In 2016, there were very few enterprises in China's six major refractory finished product production bases, which started and were ready to start. Among them:
In terms of refractory output in Henan Province, as a province with a relatively large export share of refractory materials, the operating rate of enterprises is less than 10% (Mani Group, Henan Ruitai, Rongjin, etc.), which is maintained by large refractory enterprises. Prior to the production orders; SMEs are determined by cash back; specific start-up time, but also need to wait for downstream customers to add orders.
The operating rate of finished products export enterprises in Shanxi is 11% (Shanxi New Furnace Group, China Nonferrous Metals Group Jin Aluminum Refractories, Yangquan Gengguang High Temperature Materials Co., Ltd., etc.), and the operating rate of raw materials is 8%;
The operating rate in Shandong is 5% (Shandong Luyang, Zibo Haisen Refractory, Shandong Luchi, etc.);
The operating rate in Zhejiang is 4% (Zhejiang Jinlei, Zhejiang Jingshi Huzhou, Ziziling, etc.);
The operating rate in Liaoning is 3% (Yingkou Blue and White, Angang Group Refractory Company, Haicheng Xiyang Group, etc.);
The operating rate in Guizhou is 3% (Guizhou Botong Teai, Guizhou Mingtong Refractory, Guiyang, Volkswagen, etc.).
As refractory companies have experienced industry downturns in recent years, the impact of the economic recession has caused many companies to shoulder heavy order pressures, cost pressures, capital pressures, and so on. Due to the sluggish efficiency of downstream customers of refractory enterprises, it directly affects the business benefits of refractory enterprises before, and is in a very passive state. On the one hand, production requires a lot of manpower, material resources and financial resources; on the other hand, the goods cannot be recovered, which causes some production enterprises to be forced to stop production and consume inventory. Looking at the market prospect of the refractory industry, because it is at the lowest end of the whole industry, it has accumulated certain problems for many years. Solving and effectively handling its own problems is the foundation of the survival of enterprises. Many enterprises want to start work but do not know the way of the future. How difficult it is to go, some companies are considering transformation but they don’t know whether they can succeed after the transition, and even most of them will stop doing production directly and maintain a wait-and-see attitude. It is difficult to start a business, and it is difficult to start work. This is the current status of the refractory industry.

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