Chinese ceramic exports must hold the way out of the European market

Influenced by the preliminary ruling on anti-dumping cases of building ceramics products of EU in China, in the first two days of the first phase of the 109th Canton Fair, domestic ceramic exhibitors generally felt that the number of EU merchants was small, and the European market was in jeopardy. However, domestic companies do not give up and express their desire to speed up the transformation and upgrading and adhere to the market diversification strategy.

“Only two very few European buyers came in the first two days.” The 3rd day of the 109th Canton Fair (April 17th) was just opened, and Gu Qi, Manager of International Trade Department of Foshan Sanshui Luxun Ceramics Co., Ltd. The material came to the booth early. His greatest feelings in these two days are that the EU merchants are significantly fewer than in previous years.

When this happens, it is not surprising that ancient materials were born. On March 17th, the preliminary findings of the anti-dumping investigation of the EU’s largest ceramics in China were declared to have settled: The Chinese ceramics enterprises that did not respond to the trial will be levied up to 73 temporary punitive tariffs, and 3 domestic responding companies will be granted Tax rate processing, namely Guangdong New Runcheng Ceramics, Shandong Yadi Ceramics, Dongguan Weimei Group, the tax rates were 35.5, 36.6, and 26.2, respectively; the weighted average tax rate for the remaining respondent companies was 32.2.

The interview was informed that the preliminary results of this case had greatly affected the enthusiasm of EU buyers to import ceramic products from China, and some companies’ EU orders even fell by 70%.

Rare European merchants The European buyers have rarely become a common experience of enterprises in the ceramic exhibition area of ​​the first phase of the Canton Fair. Kevin, Manager of European Marketing Department of Guangdong Jinyi Pottery Ceramics Co., Ltd., said that foreign merchants who entertained two days before the Canton Fair came from South America, the Middle East, Southeast Asia, etc. Few EU merchants visited, and several old EU customers came to visit. Wait and see, there is no intention of placing orders. The EU market accounts for the export share of Jinyi Tao Ceramics 40. At present, the company’s orders from the EU have dropped by 50.

If the offshore price of a brick is 10 dollars, the high tax rate may cause this price to rise to 20 US dollars, and the price advantage of Chinese products will no longer be. Kevin said.

At present, the difference between Chinese ceramic products and Italy and Spain is around 30. Italy and Spain are the major producers of ceramics in Europe. Therefore, anti-dumping tariffs of 32.2 will close this spread, and importers from European Union countries will certainly choose to come closer to Italy and Spain. Increase imports.

Kevin said that at present, many customers have moved their purchasing targets to Spain, Italy, and South East Asia.

Kevin said that after the implementation of temporary anti-dumping duties, many EU merchants proposed a price reduction of around 10, but Jin Yitao rejected the customer's request. Kevin believes that accepting price cuts will have a more unfavorable impact on the case. The company in which Gu Kaicai was located also encountered a similar situation. He told reporters that at present, the company’s export profit point is only about 10, so if the price cuts, it would be unprofitable.

Improving quality dislocation competition Although high temporary tariffs have pushed Chinese ceramic companies to the edge of the cliff, the surveyed companies generally believe that the EU market is an important place, and they have to hold on to this position anyway.

Xia Anli from the International Marketing Center of Guangdong Eagle Brand Ceramics Group Co., Ltd. said that the EU region represents the development direction of the ceramic industry. If the company abandons the market, it will have an adverse effect on the company's performance and product design.

Xia Anli believes that if the product is substitutable, EU importers will continue to import from China. At present, there are more glazed tiles in the EU and polished tiles are relatively small. Therefore, Chinese companies that produce polished tiles will have a greater advantage.

It is reported that the current provisional anti-dumping duty will be implemented from March 17 to September 16. During this period, it will go through a series of procedures such as no damage defense and hearing, and a final ruling will be made on September 17. If the preliminary decision is reached at that time, the EU will implement a five-year formal anti-dumping tax on China, and more companies will be affected by this.

Wu Jianfeng, general manager of Guangdong Hongyu Ceramics Exports, believes that the production of more high-end, unique products is the best way to deal with trade barriers. This objectively forces companies to upgrade.

Huang Jianghong, assistant general manager of Guangdong Dongpeng Ceramics Co., Ltd.'s International Business Department, also stated that the production of higher-end, substitutable products is a way out for the company. They will bring new products such as metal glazes this time. Huang Jianghong also pointed out that while maintaining the EU market, it must also pay more attention to market diversification. At present, there are strong demand in South America, Southeast Asia, and the Middle East, and there have been a steady stream of buyers from these regions during the Canton Fair these days.

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