Overview of the operation of the building materials industry from January to February 2024

From January to February of this year, owing to the persistent feeble market demand and seasonal factors like the Spring Festival, the building materials industry began slightly less vigorously compared to previous years. The characteristics of the buyer's market, such as oversupply and low and volatile product prices, became more evident. However, the effects of macroeconomic policies continue to be discharged, production demand has stabilized, some industries have stabilized and increased, and the downward trend of economic performance has shown signs of recovery.

The production of major building materials products has generally stabilized generally. Based on data from the National Bureau of Statistics, the added value of the building materials industry above the designated size increased by 3.9% year-on-year in January and February. The added value growth rate increased by 3.6 percentage points compared with December of last year, but was lower than the national industrial added value growth rate by 3.1 percentage points. Affected by the gradually emerging policy effects and the continuous growth of the end-use consumption of industrial products, the production of some building materials products has resumed. From January to February, among the 31 key monitoring building materials products, the output of 17 products increased year-on-year, while the output of 14 products decreased year-on-year. Among them, the output of cement enterprises above the designated size was 180 million tons, with a year-on-year decrease of 1.6%; the output of flat glass was 160 million weight boxes, with a year-on-year increase of 7.7%.

The ex-factory prices of building materials products fluctuate at low levels. The ex-factory price index of building materials industrial products in February was 89.9 points (100 in December 2019), with a year-on-year decrease of 7.5% and a month-on-month decrease of 0.9%, and the decline has narrowed. From January to February, the ex-factory price of the building materials industry decreased by 7.4% compared with the same period last year. Among the 13 industries of building materials, the ex-factory prices of 10 industries dropped. Among them, the ex-factory price of the cement industry dropped the most; but according to sub-sectors, asbestos cement products, thermal insulation, lime gypsum, flat glass, technical glass, sanitary ceramics, non-metallic minerals, and other sub-sectors, the ex-factory prices increased year-on-year from January to February. Among them, the prices of flat glass, technical glass, and non-metallic minerals, and other industries increased rapidly.

he efficiency recovery of the building materials industry is slow. From January to February, the operating income of building materials enterprises above the designated size decreased by 3.1% year-on-year, and total profits decreased by 35.2% year-on-year. In response to factors such as insufficient market demand, uncertainty, and rising instability in the external environment, building materials companies have transformed and upgraded, promoted the optimization of the product market structure, and highlighted the potential of emerging industries such as processed products and new materials. From January to February, the operating income and total profit of five sub-sectors including lightweight building materials, thermal insulation materials, construction technical glass, construction sanitary ceramics, and special machinery manufacturing for building materials production all maintained year-on-year growth. Among them, the profits of sub-sectors such as architectural glass, sanitary ceramics, and asbestos products turned losses into profits compared with the same period last year.

The fixed asset investment in the building materials industry rebounded. According to data from the National Bureau of Statistics, from January to February, national fixed asset investment (excluding rural households) increased by 4.2% year-on-year. By component, fixed asset investment in construction and installation projects increased by 4.3% year-on-year; by industry, infrastructure investment that supports the stable development of the building materials industry increased by 6.3% year-on-year. From January to February, the fixed asset investment in the building materials industry increased by 2.0% year-on-year, and the investment in fixed assets in the building materials industry stabilized and rebounded.

The export of building materials and non-metallic mineral commodities increased while imports declined. From January to February, the export value of building materials and non-metallic mineral commodities was US$6.47 billion, with a year-on-year increase of 5.4%. Excluding the impact of exchange rate changes and price declines, the actual growth in building materials exports was approximately 15.8%. The export of most building materials products showed an increase in volume and a decrease in price, but the export of cement clinker, special glass, lime, and other commodities showed an increase in both volume and price. From January to February, the import value of building materials and non-metallic mineral commodities was US$3.68 billion, with a year-on-year decrease of 38.5%, and the decline expanded. Excluding the impact of exchange rate changes and price factors, building materials imports actually decreased by 2.6%. Among them, the import value of building materials such as ultra-white glass original sheets, glass fiber fabrics, construction stones, quartz stone and quartzite, gypsum boards, and fluorspar increased rapidly year-on-year.