Abstract When reporters visited Nan'an Shuitou, they found that there were many blocks of stone in the factory warehouses and public warehouses along the street. Some blocks even piled up on the roadside. According to informed sources, affected by factors such as shrinking international market demand and appreciation of the renminbi, stone and shoes and other...
When reporters visited Nan'an Shuitou, they found that there were many blocks of stone in the factory warehouses and public warehouses along the street. Some blocks of stone even piled up on the roadside. According to informed sources, due to the shrinking demand in the international market and the appreciation of the renminbi, other industries such as stone and shoes and clothing have also appeared in stocks. The foreign trade sector has entered the era of low profit, and some companies have only 3% of profits.
Mineral underwriting
Imported raw materials volume and price rise
Since the overall environment of the foreign trade market is not good, why should companies continue to import blocks of stone?
"In fact, many imported stone merchants are 'kidnapped' by foreign mines." Insiders revealed that in the past two years, due to the shortage of international resources, many enterprises in Quanzhou began to cooperate with overseas mine owners to mine, but the way of mining Most of them adopt the method of underwriting, that is, the mine owner only manages mining, and the floating price is changed according to the international market, and the enterprise must purchase stone raw materials from the market regardless of the market. When the economy is good, there is no problem with this model. However, once the economy goes down, the enterprise will “eat and supportâ€. This is the most important reason for the current increase in the price and price of imported blocks. Of course, there are also some blocks of stocks that are caused by the company’s intention to stock up.
A common problem faced by stone enterprises is that they have limited resources to control, and stone processing materials mainly rely on imports. According to relevant persons from the Fujian Provincial Stone and Products Export Base Chamber of Commerce, due to the non-renewable nature of stone resources, foreign mining areas have increased the protection of stone mining, gradually restricting or prohibiting the development of stone mines, and the low international shipping prices this year. To a certain extent, individual stone companies and importers are hoarding supplies.
“Inventories are a problem for the whole industry.†According to the source, from the shoe clothing to toilet paper, the overproduction of the industry is widespread. According to preliminary estimates by industry organizations, the safety ratio of inventory can not exceed 30% of annual sales. That is to say, if the annual sales of the enterprise is 100 million yuan, then only 30 million yuan of waste stone stock can be tolerated. . From the reality, there is a large number of people who have exceeded the safety ratio.
Rising costs
International buyers are willing to decline
Imported blocks of stone, processed and then exported, this is the usual mode of operation of the Nanan stone industry that emerged in the 1990s. After years of market cultivation, and the local government insists on holding stone fairs every year, foreign stone buyers are gradually getting used to finding partners in Quanzhou. On the streets of Nan'an, they often see “the city's ten continentsâ€. Nowadays, this situation has changed.
"In the past, many foreigners could be seen everywhere in the streets of Nan'an, but now the number is small." Nanan Renhong said.
“The number of foreign guests visiting today is less than before.†Liu Liang, the chairman of Yingliang Stone, said that he had to receive several foreign guests every week. Almost every day, there will be guests, and sometimes there will be several batches a day. Nowadays they usually only accept one or two foreign guests a week, but this is not a sudden reduction, but a year-on-year decline.
Why are the willingness of international buyers to fall? The relevant person in charge of Kangli Stone Group Nanan Company believes that the key reason is the rising cost, which has caused the domestic stone processing products to lose the price advantage. "In the first half of this year, the export quota of Conan Nanan dropped by 60%." The person in charge said that the corresponding cost of their foreign trade has also increased by 60%. For example, the export of a cabinet, the original packaging cost is 350. Yuan, but now it has increased to about 550 yuan, coupled with the continued increase in the cost of trailer transportation, operating costs are getting higher and higher, and the import price of the stone itself has also increased year by year. "In fact, our foreign trade volume has dropped by 40% last year, especially in the North American market, which has a large sales volume. The share shrinkage is more obvious." Kangli Stone related person in charge said.
"Domestic export products are mainly based on primary processing, no brand, no right to speak, and many mining and mining countries have also vigorously developed the processing and production of stone in recent years. Many international buyers are considering the cost and transportation costs. It began to switch to processing processed stone products directly from the mining countries. The above-mentioned person in charge said that the volatility of the RMB exchange rate has greatly affected the willingness of international buyers.
Order shrinks
Stone foreign trade "Benali micro"
Cost issues have led to a reduction in orders, which in turn has intensified competition among peers, resulting in lower profit margins across the industry. “Since last year, the stone industry has encountered unprecedented difficulties.†Wang Qing’an, chairman of the Fujian Provincial Stone and Products Export Base Chamber of Commerce and chairman of Fujian Huahui Stone Industry Co., Ltd., said that foreign trade orders have generally declined, and most production and processing enterprises are under-employed. Profits have fallen, and some companies have only 3% of their profits.
Since the profits are too thin, after the calculation, individual companies even actively reduced the share of foreign trade exports. Before 2012, Conley Stone Group's ratio of foreign trade to domestic sales was 7:3, and it has now been converted to 3:7. Even if the market is still not good, the same data from Conan Nanan shows that in the first half of this year, their foreign trade declined by 60% over the same period, but the domestic market grew by only 25%. There are still many gaps.
Different from Conley, Lu Dawei, deputy general manager of Dongxing Group believes that the worse the market, the more resources need to be robbed. Otherwise, customers will lose their customers when the market recovers. Therefore, the strategy they adopt is to attract customers as much as possible. . "The main person in charge of our company has just visited all the foreign trade enterprises that have cooperated and tried to win orders. This year, foreign trade has achieved anti-market growth, and this year has increased the order volume by 4 million US dollars compared with last year." Lu Dawei said.
There are more than 1,500 stone enterprises in Nan'an, including 233 enterprises above designated size, accounting for less than 20% of the total. Many small and micro enterprises rely on cooperation with large-scale enterprises to survive. When the economic environment is good, everyone has orders. Nowadays, the big business’s own belly is still not enough, and the days of downstream enterprises are even more difficult. “If you have an order, you have to live even if it is a small profit.†Mr. Huang, who is engaged in stone production in Nan’an, said that for these small stone processing enterprises, they can support two or even one order per year, even if they It is also good to earn only a few thousand yuan.
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