How to Transform and Upgrade Refractories Industry

Since 2000, the refractory industry has also developed rapidly, driven by the high-speed development of high-temperature industries such as steel, cement, glass and non-ferrous metals. For example, China's crude steel output reached 128.49 million tons in 2000 and 70897 million tons in 2013, and increased by 580.48 million tons in 13 years, with an average annual increase of 44.65 million tons. In 2013, the utilization ratio of iron and steel production capacity was only 72%, that of cement production capacity was 73.7%, and that of flat glass production capacity was 73.1%. There is a serious overcapacity of users, and the market for refractories needed to expand capacity is almost gone. Users'elimination of backward production capacity is also reducing the demand for refractories market; science and technology are developing, quality is improving, especially steel enterprises' overall contracting of refractories, effectively prolonging the service life of steelmaking furnace, and constantly reducing the consumption of refractories. Although the recycling of smelting waste bricks saves resources and energy, it greatly reduces the demand for fused magnesia and other raw materials. It shows that the market of refractories is becoming more and more serious. Leading to market chaos, disorderly competition, inexorable price reduction by users, indefinite arrears of payments, refractory enterprises are currently living in difficulties, restricting the healthy development of the refractory industry.

Resolving excess capacity is theoretically one of "detumescence" and the other is to expand market demand. At present, the refractory market is shrinking day by day, it is impossible to expand the market demand. In the shrinking market, production enterprises compete for customers in order to survive and compete for prices, and conduct disorderly competition. Therefore, only in "detumescence" efforts, and "detumescence" can only take the market to eliminate backward capacity. We will accelerate the transformation and upgrading of enterprises and promote the elimination of the market by supporting the excellent and strengthening them.