Development Outlook of Abrasives Industry in 2016

In 2016, from the respect of international economic situation, there is a slow economic recovery in the United States and economic uncertainty in European, and the Asian economy is also unclear. The main product exports of our industry in 2015, to the United States, Europe and Asia decline generally.

Though in the first three months of 2016, the orders of abrasives products have been increased, which just complies with the principle of shop goods at the beginning of this year. But we haven't see obvious changes of economic situation, so the export trade is not optimistic.

Domestic "the 13th Five Year Plan" has made a grand blueprint for the next five years China's economy. The two sessions adjust GDP growth around 6.5-7%, and the economic growth still remains in the high-speed, but there is serious excess capacity and low level repeated production, and they are still an important factor of restricting economic development.

In 2016, the domestic economic development will continue to be a difficult time, and the industry development will be also a difficult time. We need to be fully prepared for that.

This year, the Central Economic Working Conference makes the economic policy "Seek improvement in stability" clear, which emphasizes on "De-capacity, De-stocking, De-leveraging, Cost reduction, Improving the quality and efficiency of the supply system", etc. and other main tasks.

The policies that have been issued, such as reducing workers’ payment ratio and other related policies of five social insurance and one housing fund, provide easy conditions for enterprises’ development. The industry development in 2016 will be more smooth operation.