Sand Gravel Industry Decreasing
It seems that the good days of the sand and gravel industry are coming to an end. Sand Gravel Industry Decreasing. Once a booming industry, the price of sand and gravel has fallen sharply, many mines are operating at break-even or even loss-making, and related equipment manufacturing enterprises are also in trouble.
huge contrast before and after
This is mainly due to the huge contrast before and after. The previous prosperity, such as “a shortage of sand and gravel” and soaring prices, no longer exists. Moreover, the social participation is high. With the influx of central enterprises, state-owned enterprises and social capital, large and super-large sand and gravel mines continue to emerge. However, with the changes in the market, problems also emerge one after another.
Although some people cherish hopes, the reality is cruel. From the missed opportunities after the epidemic to the continuous downturn last year, and then to the continued bottoming out this year, the sand and gravel industry has fallen into a difficult situation step by step. Monitoring data from the Quotation Network of the Sand and Gravel Aggregate Industry shows that the price of machine-made sand and gravel continues to decline, and the survival of enterprises is difficult. At the same time, the price along the Yangtze River has fallen below the lowest level, causing concern in the industry.
Crisis
However, the crisis is not over yet. The slump of the real estate industry has deprived the sand and gravel industry of the foundation for its “renaissance”. Data shows that the growth rate of real estate development investment has been on a downward trend, and the demand for sand and gravel is difficult to return to a high level. And infrastructure investment has a limited driving effect on the sand and gravel market.
Sand Gravel Industry Decreasing production capacity
At the same time, the production capacity of sand and gravel aggregates is increasing explosively. Hotspot areas such as the Yangtze River region have become “disaster areas”. According to incomplete statistics from the Media Center of the Sand and Gravel Aggregate Network, in 2023, at least 20 large sand and gravel mines with an annual production capacity of more than 5 million tons will be put into operation, with a total annual production capacity of approximately 260 million tons. In 2024, it is expected that 61 large sand and gravel mines with an annual production capacity of more than 5 million tons will be put into operation, with a total annual production capacity of up to 950 million tons. With the continuous release of these new large-scale sand and gravel mines with an annual production capacity of tens of millions of tons, the supply and demand relationship of sand and gravel in the Yangtze River region will further imbalance, and the situation of oversupply will be difficult to change, or even enter a stage of overall oversupply, and enterprises are facing a crisis in their development. Mei Xiangfu, vice president of Huaxin Cement, that the sand and gravel market in the Yangtze River region has entered a stage of permanent and overall overcapacity, and even some enterprises have already suffered losses or have little room for profit. Lv Wenlong, chairman of the board of directors of Minben Group, also stated that judging from the market situation, the price of sand and gravel aggregates is unlikely to return to a high level, and it may even be lower in the future.
Other side of Sand Gravel Industry Decreasing
In the Guangdong-Hong Kong-Macao Greater Bay Area, the situation is not optimistic either. According to statistics, in 2024, the capacity of more than 5 million tons per year in Guangdong and Guangxi provinces will reach 330 million tons. Among them, there are about 15 large sand and gravel mines with an annual production capacity of more than 5 million tons expected to be put into operation in Guangdong, with a total annual production capacity of about 228 million tons; there are about 8 large sand and gravel mines with an annual production capacity of more than 5 million tons expected to be put into operation in Guangxi, with a total annual production capacity of about 72 million tons. With the continuous expansion of new sand and gravel production capacity, the sand and gravel market in the Guangdong-Hong Kong-Macao Greater Bay Area is changing rapidly. Analysts from the Data Center of the Sand and Gravel Aggregate Network predict that with the continuous release of sand and gravel production capacity in the Greater Bay Area in the future, it will face concentrated pressure in 2025, and the imbalance between supply and demand will gradually emerge, and the situation of excessive market competition has arrived early.
conclusion
In conclusion, the future of the sand and gravel industry is full of challenges, and all parties in the industry need to work together to find new development opportunities resources.
Learn more Successful Arctic module fabrication, steel structure, modular and skid, steelwork, supplier audit, DNV Class, Oil & Gas, welding supervisor, welding quality inspection, CWI CSWIP welding inspector, pump and pipe, stainless steel fabrication and CNAS ISO 17025 9712 NDT NDE practice via below-
https://www.jsc-safe.com/steel-structures-modules-machining/