In recent years, ceramic raw material supply enterprises have generally faced many problems such as price competition, shrinking profit margins, and difficulties in capital recovery. Especially in recent years, due to the decline in market demand and severe overcapacity in the ceramic industry, some products have been idle due to lack of competitiveness, which has had a huge impact on its upstream suppliers.

At its peak, the annual production of ceramics reached 10.1 billion square meters, but in the past two years, this number has dropped to 6-7 billion square meters. The production of ceramic tiles has decreased by 30% to 40%, which has also led to a decrease in demand for ceramic raw materials. In addition, domestic suppliers are experiencing price competition, resulting in a continuous decline in profits. In this situation, many upstream ceramic manufacturers are intentionally turning their attention to foreign markets.

Taking 2023 as an example, due to various reasons such as market, channel, and cost, the production lines of some uncompetitive ceramic companies have been shut down. Industry insiders have pointed out that in a certain ceramic production area in Guangdong, the production lines of 8 ceramic companies have all been shut down, and some have not started working since 2023. Many former ceramic companies have also given up their own factories and turned to some powerful enterprises for OEM manufacturing.

In recent years, with the state of overcapacity, more and more ceramic enterprises are facing certain operational pressure and even the risk of shutdown, which has a huge impact on upstream suppliers. Supply prices are constantly being suppressed. Under the influence of various domestic problems, more and more upstream suppliers are targeting overseas markets, which is both a challenge and an opportunity.

With the advancement of regional economic integration, trade barriers in many countries and regions are gradually being eliminated. Expanding export scope and exploring new markets are the best choices for upstream ceramic suppliers. Opening up overseas markets, bringing broader market space, more development opportunities, and more economic benefits to enterprises, is also a necessary path for enterprises to further expand their market share.