Existing Problems and Development Direction of Abrasives Industry

In recent years, the rapid development of all industries in our country, stimulates the development of the abrasives industry, and it also has exposed some problems in the process of development. Now the threshold of abrasives industry is low, and under the stimulus of the market demand, large amounts of money is poured into the abrasives industry. Abrasives industry remains in low-level homogeneity competition stage for a long time, and the excess capacity expansion and malignant price competition become common. The industry overcapacity is becoming increasingly prominent.

In 2015, some downstream industries such as steel, shipbuilding and photovoltaics are depressed, which have weak demand for abrasives products. Abrasives enterprises’ inventory backlog is serious, and a lot of abrasive enterprises are off production or half off production. The serious overcapacity of abrasives industry has hindered the development of enterprises, the industrial structure adjustment and the healthy operation of the market economy.

Abrasives industry should be aware that solving severe overcapacity will bring the pain, and have a lot of enterprises to be eliminated in the process. But in the long run, it is necessary to control the further, excess capacity contradictions and guide good investment direction, to promote the transformation and upgrading of abrasives industry. From the point of view of enterprises, it needs enterprises’ innovation in the development idea, to find a way through innovation management.

Abrasives industry needs to take the strategy to prevent overcapacity and solve overcapacity in order to achieve sustainable development. As a new industry, superhard materials and products also should prevent the overcapacity problem in the process of development, to prevent the same mistakes of abrasives industry.

Currently, superhard materials and products in China are still in the medium level, and also have price war in the low-end products field of technical content that is not high, which may cause the overcapacity. If superhard material industry enterprises want to walk out of the low end competition, they must strengthen technology innovation and improve the competitiveness.