Introduction: From January to June, the national refractory output was 10.4822 million tons with the same caliber, down 13.75 percent year on year....

【China Refractory Network]]

Overall Operation of Industries Above Designated Size in 1.

In June 2020, the value added of industries above designated size increased by 4.8 in real terms year-on-year (the following value added growth rates are real growth rates net of price factors), an acceleration of 0.4 percentage points from May. From January to June, the added value of industries above designated size fell 1.3 percent year-on-year.

1. From January to June, industrial enterprises above designated size achieved operating income of 46.31 trillion billion yuan, a year-on-year decrease of 5.2 percent; operating costs incurred were 39.16 trillion billion yuan, a decrease of 4.7 percent; and the total profit of industrial enterprises above designated size nationwide was 2511.49 billion billion yuan, a year-on-year decrease of 12.8 percent (calculated on a comparable basis), a decrease of 6.5 percentage points from January to May. Operating income margin was 5.42 per cent, down 0.48 percentage points year-on-year.

2. At the end of June, the operating income of industrial enterprises above designated size per 100 yuan of assets was 78.8 yuan, a year-on-year decrease of 9.6 yuan; the per capita operating income was 1.296 million yuan, a year-on-year decrease of 15000 yuan; the inventory turnover days of finished products were 20.0 days, a year-on-year increase 2.5 Days; the average payback period of accounts receivable was 56.6 days, an increase of 8.8 days year-on-year.

From January to June, the mining industry achieved a total profit of 164.7 billion billion yuan, down 41.7 percent from the same period last year; the manufacturing industry achieved a total profit of 2122.3 billion billion yuan, down 9.8 percent; and the electricity, heat, gas and water production and supply industries achieved a total profit of 224.5 billion billion yuan, down 8.7 percent.

Production and Operation of Resistant Material Industry in January-June 2020, 2.

1、refractory materialProduction situation

From January to June, the national refractory output was 10.4822 million tons, down 13.75 percent from the same period last year. Among them, 5.6107 million tons of dense shaped refractory products, down 16.34 from the same period last year; 312000 tons of thermal insulation refractory products, up 5.94 from the same period last year; and 4.5596 million tons of unshaped refractory products, down 11.51 from the same period last year. Among the dense shaped products, 1.3865 million tons of carbon-containing products, down 3.35 percent year-on-year, and 233200 tons of functional products, down 14.4 percent year-on-year. The decline in dense shaped products was larger, mainly because refractory materials for infrastructure were more affected by the outbreak.

The output of the main production provinces (cities) of refractory materials also declined to varying degrees. Henan Province produced 3.3531 million tons in the first half of the year, down 36 percent from the same period last year; Liaoning produced 2.203 million tons in the first half, down 2.22 percent from the same period last year; Shandong produced 1.2354 million tons, down 3.37 percent from the same period last year; Jiangsu produced 722700 tons in the first half, down 5.53 percent from the same period last year; and Zhejiang produced 697900 tons in the first half of the year, down 13 percent from the same period last year. It should be noted that due to the partial adjustment and optimization of this year's statistical methodology, the first half of the comparison benchmark was selected based on half of the final annual output verified at the end of 2019, so the year-on-year data deviation is large. In addition, the reason for the increase in output in some areas is that associations at all levels encourage more enterprises to report, and the number of samples has increased compared with the previous year. The adjustment of statistical attribution has also resulted in some changes.

Overall, refractory production in most regions and enterprises in the first half of 2020 was still relatively affected by the epidemic.

2. Import and export trade of refractory raw materials

From January to June, the national import and export trade of refractory raw materials totaled US $1.618 billion billion, a decrease of 20.01 percent over the same period last year. Among them, the export trade volume was 1.501 billion US dollars, down 18.28 percent year-on-year; the import trade volume was 0.117 billion US dollars, down 37.09 percent year-on-year.

The total export volume of refractory raw materials nationwide was 2.8015 million tons, down 4.76 percent year on year. Among them, the export volume of refractory raw materials was 2.0637 million tons, down 2.4 percent from the same period last year; the export volume of refractory products was 737800 tons, down 10.80 percent from the same period last year.

In terms of export prices, electrofusionmagnesiaThe export volume increased slightly year-on-year, about 5.72 per cent, but the average export price still decreased significantly;corundumThe export volume decreased significantly year-on-year, but the average export price increased slightly. Refractory clay, sintered magnesia, white corundum,Silicon CarbideBoth the volume of exports and the average price of exports have declined to varying degrees.

In the export of refractory products, the export volume of alkaline products increased slightly by 1.34 year-on-year, while the average export price decreased significantly year-on-year; the export volume of aluminosilicic products decreased by 26.98 year-on-year, but the average export price increased by 15.54 year-on-year; the export volume of other refractory products decreased by 4.89 year-on-year, and the average export price decreased by 11.77.

   Production and Operation of Main Downstream Industries in 3.

Operation of (I) Iron and Steel Industry

1. Production and operation of China's steel industry

According to the National Bureau of Statistics, the national pig iron output from January to June was 0.433 billion tons, an increase of 2.2 percent over the same period last year; crude steel output was 0.499 billion tons, an increase of 1.4 percent over the same period last year, and the growth rate was 8.5 percentage points lower than the same period last year; steel output was 0.606 billion tons, an increase of 2.7 percent, and the growth rate was 8.69 percentage points lower than the same period last year. The output of each month is shown in Figure 4.

2, the world steel industry production.

From January to June, global (66 countries and regions combined) crude steel production was 0.873 billion tons, down 6% year-on-year; China's share of global crude steel was 57.15. Steel production in North America and the European Union fell by about 18% in the first half of the year, while non-state steel production fell by 20%. In the CIS countries, however, the decline was smaller, at about 4.1 per cent. In the Southeast Asian market, Thailand's influence is greater, but Vietnam's steel production also increased by 4.6 in the first half of the year.

Production and Operation of (II) Building Materials Industry

From January to June, the national cement output was 0.998 billion tons, down 4.8 percent from the same period last year. Flat glass production 0.462 billion weight boxes, down 0.4 percent from the same period last year.

Production and Operation of Non-ferrous Metals Industry in (III)

In the first half of the year, the output of 10 kinds of non-ferrous metals nationwide was 29.282 million tons, up 2.9 percent year on year. Among them, the output of refined copper was 4.822 million tons, up 4.6 percent year-on-year; the output of primary aluminum was 17.889 million tons, up 1.7 percent year-on-year; the output of lead was 2.767 million tons, up 4.4 percent year-on-year; and the output of zinc was 3.048 million tons, up 7.7 percent year-on-year.

4.refractory materialAnd the main downstream industry operating characteristics.

Operating characteristics of major downstream industries in (I)

The operating characteristics of the main downstream industries in the first half of the year are:

1. In the first half of the year, the operating income of enterprises in the building materials industry was 2.4 trillion yuan, down 4.8 percent from the same period last year, and the total profit was 187 billion yuan, down 8.2 percent from the same period last year.

Among them, cement operating income was 426.2 billion yuan, down 6.1 percent from the same period last year, profit was 76.7 billion yuan, down 6.1 percent from the same period last year, flat glass operating income was 38.1 billion yuan, up 0.8 percent from the same period last year, and profit was 4.8 billion yuan, up 2.8 percent from the same period last year. Revenue and profit both achieved positive growth.

From January to May, the export value of building materials and non-metallic mineral commodities was 12.25 billion US dollars, down 14.1 percent year-on-year, and the import value was 7.14 billion US dollars, down 24.1 percent year-on-year. Product prices fluctuated within a narrow range. In the first half of the year, the ex-factory price index of building materials and non-metallic mineral products increased by 0.3 year-on-year. Among them, the ex-factory price index 112.71 in June, down 1.2 year-on-year. The average ex-factory price of cement in the first half of the year fell 1.9 percent year-on-year, and the ex-factory price index in June 110.09, down 6.2 percent year-on-year; the average ex-factory price of flat glass in the first half of the year increased 2.0 percent year-on-year, and the ex-factory price index 82.54 in June.

2, steel prices hovering low. According to the monitoring of the China Iron and Steel Association, in June, China's steel price index averaged 103.1 points, down 5.4 percent from the same period last year; from January to June, China's steel price index averaged 101.0 points, down 7.7 percent from the same period last year, of which long wood fell 8.2 percent on average and plate fell 7.5 percent on average.

The economic benefits of the steel industry have fallen sharply. According to data from the National Bureau of Statistics, from January to June, the ferrous metal metallurgy and rolling processing industry achieved operating income of 3186.04 billion billion yuan, a year-on-year decrease of 3.8; the total profit realized was 84.08 billion billion yuan, a year-on-year decrease of 40.3. However, the efficiency rebounded in June. In June, the black metal metallurgy and rolling processing industry achieved operating income of 639.1 billion billion yuan, an increase of 6.0 percent over the same period last year;

3, non-ferrous industry prices rebounded in stages, the decline in benefits has narrowed. From January to June, the non-ferrous industry realized a profit of 50.08 billion yuan, down 25.4 percent from the same period last year, especially in June, a profit of 16.65 billion yuan, up 18.3 percent from the same period last year, driving the decline in benefits in the first half of the year to 11.6 percentage points lower than that in January-May. Among them, mining, smelting and processing industries made profits of 13 billion yuan, 17.64 billion yuan and 19.44 billion yuan from January to June, down 13.4 percent, 37.1 percent and 19.2 percent, respectively, the decline narrowed by 1.8, 16.2 and 13.7 percentage points from January to May.

(II)refractory materialIndustry operation characteristics

1, production decline, affected by the outbreak of different.

From January to June, the output of refractory products decreased by 13.75 year-on-year. In addition to a slight increase in insulation products, the yield of other varieties has been reduced to varying degrees. In addition to silica bricks, clay bricks, high-alumina bricks and magnesia bricks in dense shaped products decreased significantly, by 23.54 per cent, 25.22 per cent and 24.97 per cent, respectively; "operation" of the consumption of refractory varieties, less affected by the epidemic, infrastructure refractory enterprises by the impact of the epidemic and the impact of greater, more direct.

From a regional point of view, Zhejiang, Jiangsu, Shandong and other producing areas are less affected by the epidemic. The main reason is that the variety structure and customer quality of local traditional advantageous industries are better and their competitiveness is stronger. Enterprises in other producing areas are more affected by the epidemic than in other regions.

2. Export of refractory materials

From January to June 2020, the export volume and average export price of domestic refractory raw materials declined across the board. Careful analysis, for different export markets and export product structure, there are still differences. From the demand side, foreign countries have been affected by the epidemic for a long time, and the overall economic impact is greater. Direct performance is North America, the European Union in the first half of the steel production fell by about 18%. In the CIS countries, however, the decline was smaller, at about 4.1 per cent. In the Southeast Asian market, Thailand's influence is greater, but Vietnam's steel production also increased by 4.6 in the first half of the year. But the demand side of the export market is under pressure. According to the 2020 semi-annual report published by Vesuvius and Aomagnesium, the sales revenue of refractory materials of the two industry leaders in the first half of 2020 decreased by 19-22%, reflecting the changes and pressure on the end of the demand for refractory materials in the foreign steel market. The demand for refractory raw materials will also be reduced. However, in the first half of the year, the export volume of domestic refractory raw materials decreased slightly, about 2.40, which shows that the traditional export market of raw materials is still there, and the decline in trade volume is mainly due to the large decline in prices.

Refractory products exports, in the first half of this year, the export business of small export enterprises affected by the epidemic, although large export enterprises have also been affected, but the magnitude is not large. Overall, the export volume of alkaline refractory products in the first half of the year increased by 1.34. Some markets have rebounded in July. The competitive advantage of domestic refractory materials in the international market is still strong. It is believed that with the recovery of foreign steel industry, refractory export market will be restored. The export market will also further concentrate on advantageous enterprises.

Domestic market and foreign market interaction. Some export raw materials and due to export obstacles, return to the domestic market to participate in competition, resulting in domestic market prices under pressure, the first half of the performance. But the product market is not obvious. The main reason for the decline in prices in the domestic market is that there is too much overcapacity.

3. Slight decrease in losses of loss-making enterprises

In the first half of 2020, there were 11 loss-making enterprises in key enterprises, with a loss of 14.47 per cent, an increase from 2019. The loss of loss-making enterprises was 0.321 billion yuan, an increase of 0.3 billion yuan over the same period last year.

4, accounts receivable slightly increased, is still an important factor affecting the operation of production enterprises.

At the end of June, the total accounts receivable of key enterprises was 16.461 billion billion yuan, up 6.26 percent year on year. Among the key enterprises, 44 enterprises had an increase in accounts receivable, with an increase of 57.89 per cent. Among them, 20 enterprises rose by more than 20 per cent, with an increase of 26.31 per cent. What is more serious is that the accounts receivable of three production enterprises increased by more than 50% year-on-year, which not only increased the capital cost of the enterprise, but also seriously endangered the business safety of the enterprise.

Production and operation of key refractory enterprises in (III)

According to the survey on the operation of 76 key refractory enterprises, the output of 5.275 million tons of refractory materials (including some refractory raw materials) decreased by 12.35 compared with the same period last year; the sales revenue was 25.338 billion billion yuan, down 7.92 percent from the same period last year; and the profit margin was 1.53 billion billion yuan, with a profit margin of 6.04 percent, lower than the profit margin of 8.89 in the first half of 2019, but 0.62 percentage points higher than the average profit margin of industrial enterprises in China. The advantages of industry leaders are still obvious.

5. second half of 2020refractory materialIndustry Operation Forecast

1, 2020 downstream steel, building materials, non-ferrous and other industries demand is relatively stable.

The impact of the epidemic on all walks of life is huge, and the impact may also be long-term. However, thanks to the concerted efforts of the Chinese Government and the people of the whole country, the response to the epidemic has been well organized and well organized. The impact of the epidemic on the economic level is better controlled. According to the forecast of the China Iron and Steel Industry Association, although steel exports and mechanical and electrical equipment exports affect total steel consumption, due to the country's capital construction, the apparent steel production and consumption will be at a higher level in 2020. According to the forecast data of relevant professional departments. The apparent consumption of steel in 2020 is about 0.968 billion tons, up from 0.95 billion tons in 2019. Due to the "bottom" effect of capital construction, to a certain extent, it will also enhance the consumption level of cement, non-ferrous metals and other consumption levels, so the demand for refractory materials in the downstream steel, building materials, non-ferrous and other industries is relatively stable in 2020.

However, from July 31, the China Iron and Steel Industry Association of the sixth session of the second director (enlarged) meeting, learned that the first half of the iron and steel enterprises profit level fell by a large margin, some enterprises have some difficulties in operation, the impact of the epidemic on the later market trend variables are still large. The above situation will certainly be reflected in the steel enterprises to refractory bidding business, affecting the operating efficiency of refractory enterprises.

2, the current competitive landscape of the refractory industry is complex and changeable.

The industry's serious overcapacity, the price of refractory raw materials in the first quarter, the decline in the efficiency of steel mills, due to the epidemic caused by some of the export products blocked and other factors, resulting in the current domestic refractory market complex competition situation. Industry self-discipline, group heating, and common difficulties are the common voice of refractory enterprises.

The long-standing serious overcapacity in the industry, low industrial concentration, and a large number of market competitors are problems in the refractory industry for many years. In recent years, due to the state to encourage the transformation and upgrading of enterprises, enterprises into the park, energy conservation and emission reduction and other factors, on the one hand, it has greatly improved the equipment level of the industry, changed the face of refractory enterprises, but also caused further expansion of production capacity surplus. At present, the main body and pattern of competition are complex and changeable, and there are behaviors such as "dimension reduction competition" and "competition below cost price". Small enterprises are actively striving for the market of large customers, and large enterprises are also actively seizing the market of low-end customers. According to the research and analysis of the window network of refractory materials, the downward changes in the prices of refractory raw materials in the first half of the year have been gradually transmitted to product enterprises, and the comprehensive effect has appeared. In addition to the relatively stable market prices of high aluminum raw materials and high aluminum and siliceous products, the market prices of many products fell sharply in the first half of the year, and the prices of alkaline products and special refractories fell sharply. In the bidding business, the phenomenon of winning bids below cost occurs from time to time. Competitors attack and blame each other in the market. For example, the ex-factory price of magnesia-calcium brick products is currently well below the cost price. Some steel mills require a drop of about 20%, far exceeding the profit level and affordability of refractory products enterprises.magnesiaRaw material production enterprises and enterprises with a high proportion of alkaline products are facing greater market pressure. The association calls for strengthening industry self-discipline, overcoming difficulties together, and jointly resisting market competition below cost.

3, 2020 refractory industry pressure, many challenges. However, some key enterprises are still in good condition.

Association research found that part of the product grade and customer grade higher refractory products enterprises, the first half of the production and operation of production by the epidemic is not too big, operating conditions and profit levels are significantly better than the industry average. This shows that market resources continue to concentrate on advantageous enterprises. With the further consolidation of the phased effectiveness of epidemic prevention and control, the national macro policy to hedge the impact of the epidemic has been strengthened, the proactive fiscal policy has become more active, the prudent monetary policy has become more flexible and moderate, the reform of market-oriented allocation of factors has been further deepened, and the effects of the "six stability" and "six protection" policy measures have gradually emerged, which will provide a favorable external environment for the refractory industry to promote high-quality development. Advantage enterprises will still have better development opportunities.

The operation of the industry in the first half of the year shows that the refractory industry has withstood the test of the epidemic. After the outbreak of the new coronary pneumonia epidemic at the end of January 2020, the Association and the whole industry resolutely implemented the spirit of General Secretary Xi Jinping's important instructions and the decision-making and deployment of the Party Central Committee, the State Council, the China Iron and Steel Industry Association and the governments at all levels where the enterprises are located, and worked hard to ensure the normal operation of the production and operation of the industry while doing a good job in the prevention and control of the epidemic. In the first half of the year, there was no shortage of refractory materials in the whole industry, which affected the production and customer demand of steel, building materials, non-ferrous metals and other industries.

2020 will be a challenging year for the refractory industry. Changes in the market demand side, the downward price of raw materials and products, and the resonance reaction of domestic and foreign markets are common challenges facing the refractory industry. Doing everything possible to maintain market stability is the common desire of the refractory industry. On the one hand, the association calls on member companies not to blindly add new capacity. Call on member companies to strengthen industry self-discipline, oppose vicious competition, and form a joint force to maintain market stability; the association will work with all member companies to strengthen communication with upstream and downstream industries, uphold the concept of mutual benefit and mutual support, and strengthen the coordination of the industrial chain. Maintain a fair, just and stable market order, overcome difficulties together, and work together for the high-quality development of the refractory industry.