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The Economic Situation of Coated Abrasives Industry in 2014

In the first half of 2014, faced with slowing demand increase in both China's domestic market and foreign market, and new standards for environmental protection, the coated abrasives industry was under huge pressure.

From: iAbrasive.comDate: 2014-10-31 10:06:19Views: 496

In the first half of 2014, faced with slowing demand increase in both China's domestic market and foreign market, and new standards for environmental protection, the coated abrasives industry was under huge pressure. Fortunately, the entire industry enhanced transformation and upgrading, and attached more importance to energy-saving and emission production, as well as improving the products' added value. Compared to the situation in the same period of last year, the industry's operation maintains stable and has seen an increase in output, output value, total profit value, and export volume.

Industry Operation Analysis

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1. The overall situation of the downstream industry both in China and abroad is favorable, the coated abrasives consumption has increased. In the first half of 2014, steel products output was 552,000,000 tons, which increased 6.4% on year-on-year basis; stainless steel output was 10,690,000 tons, which increased 21.2% on year-on-year basis; the automobile output was 11,780,000, which increased 9.6% on year-on-year basis; artificial board output was 143,000,000 cubic meters, which increased 7.86% on year-on-year basis; furniture output was 377,000,000 pieces, which increased 4.3% on year-on-year basis; ten kinds of non-ferrous metal output was 20,890,000 tons, which increased 5.4% on year-on-year basis. The overall international economic situation was slowly recovering and the export trade was stably increasing, which guaranteed the rising momentum of the coated abrasives industry in the first half of 2014.

2. A majority of coated abrasives companies have improved market competitiveness and anti-risk capacity by transformation and upgrading, as well as adjustment of product structures. Although companies were confronted with many difficulties, there were still some powerful companies that were not impacted so much. The major reason is that these companies are able to grasp the government policies' direction and the market trend to make timely adjustments. With high-quality coated abrasives products accounting for a larger proportion in the market, the companies' anti-risk capacity has been enhanced.

3. The fiercer market competition. Since China is becoming the center of world economic development, an increasing number of foreign abrasives companies are becoming focused on the Chinese market. The assembly lines of coated abrasives is increasing annually. Compared with foreign companies, China's coated abrasives companies have a huge gap in terms of profitability, brand advantage, R&D ability, equipment standard, management level, etc. Many companies still depend heavily on substitutes for imported goods in terms of innovation. There is still a long way to go for China to become a power nation for coated abrasives.

4. The phenomenon of poor product stability remains. Compared with imported goods, China's products are poorer in raw materials, equipment, technologies, and personnel. All the factors contribute to the final gap. Take the online testing system of coated abrasives assembly line adopted by foreign countries in the 1970s, it is now rarely seen in China's coated abrasives companies.

5. At present, informal acts still exist within the coated abrasives industry in China. disordered market and product price, no uniform standard for raw materials, no effective methods to control the manufacturing process and technology, no uniform testing equipment and standards, just to name a few. All these problems have become the restricting factors for the coated abrasives industry's development. Therefore, regulating market, raw materials, technologies, and product testing standard have become an essential need for China's abrasives industry.

Author: Liwei Chu
Copyright: iAbrasive.com--Abrasives & Diamond Tools Market

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