Refractories industry: looking for opportunities and development in challenges

The global financial crisis caused by the subprime mortgage crisis in the United States has caused serious impact on the real economy of our country. any industry is difficult to avoid, refractory industry is no exception. Since the second half of 2008, due to the sudden change of production and operation situation in metallurgy, building materials, non-ferrous metals and other industries in China, the contradiction between supply and demand in the refractory market of the downstream industries has emerged, which has forced some refractory enterprises to stop kilns and limit production. Some small and medium-sized enterprises have been forced to stop production because of reduced orders and difficulties in returning funds. In order to cope with the global financial crisis, help enterprises overcome difficulties and overcome difficulties, the state has taken a series of major measures to ensure the steady and rapid development of the national economy. Then, in 2009, the overall operation of the refractory industry will be how? With some problems, the reporter visited the China Association of Refractory Industry Executive Vice President and Secretary-General Xu Dianli.
Reporter: Since the second half of 2008, the growth rate of China's main raw material industry has slowed down significantly. How about the overall operation of the refractory industry? What are the outstanding problems?
Xu Dianli: 2008 is an unusual year. The economic situation at home and abroad is complicated and changeable. Especially since the third quarter, the global economic situation has deteriorated sharply, and the refractory industry has not been able to stand alone. Overall, the refractories industry in 2008 was running smoothly and the output of refractory materials was 24 million 174 thousand and 800 tons. Among them, 15.5408 million tons of dense and stereotyped refractory products, 472 million tons of insulated refractory products and 8.162 million tons of unshaped refractory products. Among the dense and stereotyped refractory products, 3.6672 million tons of clay bricks, 2.7716 million tons of high alumina bricks, 2.239 million tons of silica bricks, 1.437 million tons of magnesia bricks and 3.815 million tons of special refractory products (including 2.639 million tons of magnesia-carbon bricks and alumina-magnesia bricks). In 2008, the import and export trade of refractory raw materials was running smoothly, with the total import and export trade of refractory raw materials amounting to 2.285 billion US dollars. Among them, export trade amounted to US $2 billion 146 million and import trade amounted to US $140 million.
The main problems existing in the production and operation of refractory industry are as follows: firstly, the profit margin of refractory production enterprises has been greatly reduced due to the sharp increase in the price of raw materials in the first half of the year; secondly, in the two months of the end of 2008, affected by the international financial crisis, the production demand has fallen sharply, the contradiction between supply and demand has become more prominent, and the industry is facing severe challenges. Challenge.
Reporter: In 2008, the Central Economic Work Conference formulated the general policy of "maintaining growth, promoting domestic demand and adjusting the structure". The impact of the global financial crisis on the real economy is still expanding. After entering 2009, what measures should be taken by the refractory industry to cope with the financial crisis and ensure the health and stability of the industry? Development?

Xu Dianli: For the refractory industry, 2009 will be a more challenging year. The uncertainties in the international economic environment have increased significantly. There are also some outstanding contradictions and problems in the domestic economic operation. In this regard, we must strengthen the sense of hardship, to face the current situation with a normal attitude, in the face of challenges to find opportunities for development. Facing the severe challenges in the future, refractory manufacturers should attach great importance to and deal with the following problems:

First, we need to strengthen our confidence and actively respond to challenges.
The economic crisis is accompanied by the economic development cycle and may occur in the future. A series of policies and measures formulated and deployed by the Standing Conference of the State Council to further expand domestic demand and promote stable and rapid economic growth will effectively promote the steady and rapid economic development of China.
Two, we must strictly control the total production.
Combining the total quantity control with the variety structure adjustment, the problem of structural excess of refractory products is more prominent under the present situation. Therefore, the refractory enterprises must strictly control the total production, resolutely implement the fixed production by sales, shift the focus of the enterprises to adjust, optimize the variety structure and promote the optimization and upgrading of the industrial structure, and actively promote the independent innovation and research and development capabilities of the enterprises in combination with their own reality, and seek development by variety and quality. Exhibition. At the same time, we must strictly control new projects and expand production capacity blindly.
Three, we must consciously standardize the market order and resolutely put an end to low price bidding.
We should insist that the price of refractory products is lower than the cost of manufacture and never produce or sell them. We should keep the price of refractory products relatively stable and pay special attention to preventing unfair competition, such as competing price cuts, so as to create a good market order and environment for refractory products. Without a contract, we would rather reduce and limit production than strictly control the reasonable stock of the enterprise, so as to ease the liquidity of production. Do not give the goods firmly, do not deliver the goods, stick to integrity first, and never create a new triangle debt.
Fourth, it is necessary to enhance cost awareness, strengthen cost management, maximize the control of product manufacturing costs and expand profit margins.
Strictly control the financial, management and sales expenses of the enterprise, and strive to reduce procurement costs, in accordance with the requirements of tight days, careful budgeting, strict management, do everything possible to reduce the cost of production and manufacturing costs to the minimum.
Five, we must seize the opportune moment and actively promote the joint reorganization of enterprises and eliminate backward production capacity.
In particular, large key enterprises should seize the opportunity to restructure jointly through competition, merger and holding, adjust and optimize their structure and promote the improvement of their competitiveness.
Sixthly, we should strengthen the sense of hardship, closely follow the changes of domestic and foreign markets, timely adjust management strategies, and enhance the enterprise's ability to resist risks.
The refractory enterprises should actively follow the market changes and adjust their management strategies in time. The China Refractories Association will also arrange for special personnel to collect and collate information on market changes at home and abroad, especially the production and operation of downstream industries, and the import and export trade of refractories. Through the association website, magazines and letters and other different channels of timely feedback to member enterprises, for enterprises to adjust their business strategies to provide a reference.
Reporter: How do you think refractory manufacturers should grasp the situation and seek development in the new year?
Xu Dianli: I personally think that the improvement of market demand requires a process and certainly a certain period of time. Therefore, every production enterprise should have sufficient ideological preparation, solve the immediate worries and seek development, closely follow the market changes, actively adjust the production rhythm, grasp the business strategy of the enterprise, and do its utmost to reduce losses. Do your own business well.

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