In 2022, China's economic development encountered multiple unexpected factors at home and abroad, such as the epidemic, and the overall economic operation of the sand and gravel industry showed the characteristics of "weakening demand, lower volume and price".
In 2022, the supply and demand of sand and gravel are generally weak. On the supply side, the operating rate of production lines and the utilization rate of production capacity are generally low; on the demand side, the demand for sand and gravel is shrinking. From the perspective of supply and demand, the supply of sand and gravel will exceed the demand in the whole year of 2022, and the inventory of enterprises will remain high. The national output of sand and gravel is 17.42 billion tons, which is 11 years lower than that in 2021.
The price of sand and gravel will continue to fall in 2022. In December 2022, the comprehensive average price of sand and gravel in China is 109 yuan/ton. The prices of machine-made sand, natural sand and gravel also dropped to 100 yuan/ton, 135 yuan/ton and 94 yuan/ton respectively. The prices of sand and gravel in cities along the Yangtze River and coastal areas also dropped by 4.8% and 9% respectively compared with the beginning of the year.
In 2022, there will be 719 new sand and gravel mining rights in China, and 186 new sand and gravel mining rights in Xinjiang. The quantity of sand for construction and limestone for construction stone is the largest; Among the newly established sand and gravel mining rights, the proportion of super-large and large-scale sand and gravel mining rights has increased, while the proportion of medium-sized and small-scale sand and gravel mining rights has decreased. In terms of the transaction price of
new sand and gravel mining rights, the transaction price of new sand and gravel mining rights in Zhejiang and Hainan was 15.5 yuan/ton and 14 yuan/ton respectively.
In terms of sand and gravel enterprises, the operating rate and capacity utilization rate of sand and gravel enterprises declined at the beginning and end of the year, and maintained a high level in the middle of the year; The average daily shipments of key sand and gravel enterprises were running at a high level in the fourth quarter, and remained at a low level at other times. Operation of
China's sand and gravel industry 1. Decrease
in output Changes
in China's sand and gravel output from 2017 to 2022 In 2022, the national sand and gravel output was 17.42 billion tons, down from 2021. On the supply side, the operating rate of production lines and the utilization rate of production capacity were generally low due to factors such as high inventory, epidemic prevention and control, and transportation hindrance; on the demand side, the investment in infrastructure increased 9. Due to the sluggish investment in real estate, the investment in development decreased by 10% throughout the year, which provided weak support for the demand for sand and gravel.
2. Prices continued to fall
Affected by multiple factors such as the epidemic situation and the downturn in the real estate market, the operating rate of construction projects was insufficient, and the market demand for sand and gravel was stable and weak, resulting in a sustained decline in the price of sand and gravel.
According to the big data center of China Sandstone Association, in December 2022, the comprehensive average price of sand and gravel in China was 109 yuan/ton. Average price of natural sand
in 2022 (yuan/ton)
Average price of machine-made sand in 2022 (yuan/ton)
In December 2022, the national average price of machine-made sand was 100 yuan/ton, down 5.0% year-on-year in December; The average price of natural sand is 135 yuan/ton, which is 8.
The average price of construction stone in 2022 (yuan/ton)
is 94 yuan/ton in December 2022. 7.
Monthly change table of sand and gravel market in key cities across the country in 2022 (yuan/ton)
In 2022, according to the price changes of sand and gravel market in 18 key cities across the country, the prices of sand and gravel in these 18 cities all fell. Among them, Changsha, Nanning, Kunming and Wuhan all fell by more than 10%, with declines of 13.4%, 12.9%, 11.3%,
10.3%, respectively. Prices also continued to fall. On the basis of the high price of sand and gravel in the cities
along the Yangtze River at the beginning of the year, the price continued to fall due to the factors such as the closure of the port by the epidemic, the poor downstream demand and the high freight along the Yangtze River. In the fourth quarter, with the arrival of the peak construction season, the demand rebounded and the price also rose slightly. Overall, the price of sand and gravel at ports along the Yangtze River continued to fall in 2022, falling to 114 yuan/ton in December, down 3 from the beginning of the year.
The price of sand and gravel in cities along the Yangtze River in 2022 (yuan/ton)
2022 (yuan/ton)
. Overview of
Sand and Gravel Mines Distribution of
China's Sand and Gravel Mining Rights in 2021 , Overview
of new sand and gravel mining rights in 2022 Distribution of
new sand and gravel mining rights in 2022 of Newly Established Sandstone Mining Right Minerals in https://img7.ccement.2022
of new sand and gravel mining rights
in 2022 , The proportion of super-large sand and gravel mining rights with resource reserves of more than 10 million tons and large sand and gravel mining rights with resource reserves of between 5 million and 10 million tons increased to 40.0% and 16% respectively. In addition, the proportion of medium-sized sand and gravel mining rights with resource reserves of between 1 million and 5 million tons was 31.0%; The proportion of small sand and gravel mining rights with resource reserves of less than 1 million tons is 12.Area distribution
of new sand and gravel mining rights
in 2022 Area of
new sand and gravel mining rights in 2022 From the perspective of the area of new sand and gravel mining rights, the scale level of the sand and gravel industry has been further improved, and the area of new sand and gravel mining rights is 0. There are 222 mining areas between 0 and 0.1 square kilometers, accounting for 31%, which is 14 percentage points lower than that in 2021, and the number of new small-scale sand and gravel mining rights continues to decrease; The transaction price of
the new sand and gravel mining right with an area of 0.
2022
In Zhejiang, Hainan, Guangdong and other hot provinces in Southeast China, the transaction price of newly established sand and gravel mining rights ranks first in the country, mainly because these areas have the advantages of high quality minerals, high expected price of terminal products, large reserves of resources, long transfer period and convenient transportation. It is favored by large sand and gravel investors such as state-owned enterprises and state-owned enterprises, and can accept a higher premium, so the competition is generally fierce, resulting in a high final transaction price. Liaoning, Heilongjiang, Yunnan, Guizhou and other northeast and southwest regions are rich in their own resources, but the local demand is insufficient. Some provinces such as Guizhou are in a serious oversupply, which belongs to the net outflow of sand and gravel from the market, and the bidders are not motivated enough to bid at a premium. Therefore, the transaction price of the new sand and gravel mining rights is also low, less than 1 yuan/ton.
6. Overview
of operation of sand and gravel enterprises Operating rate of
sand and gravel enterprises in 2022 Capacity utilization rate of
sand and gravel enterprises in 2022 key sand and gravel enterprises
in 2022
for
2023 Supply: The supply of sand and gravel may increase steadily. On the whole, the era of sand and gravel shortage in China is no longer there. Except for some areas, the supply of sand and gravel in most areas of China is in a sufficient state. In such a market environment, with the gradual liberalization of epidemic prevention and control, and the gradual release of production capacity of new and existing sand and gravel production lines, the supply of sand and gravel may increase steadily.
Demand: The demand for sand and gravel may increase steadily. In respect of the real estate market, as the relevant policies take effect, the real estate market will gradually undergo positive changes, and the demand for sand and gravel will grow slowly. In respect of infrastructure construction, the Report on the Work of the Government pointed out that it would focus on supporting the construction of infrastructure and livelihood projects such as transportation, water conservancy, energy and information, and continue to promote new urbanization. Actively expand effective investment, promote stable investment growth, and infrastructure investment is expected to maintain a relatively rapid growth, especially the "3. Overall, the demand for sand and gravel is expected to maintain a steady upward trend," as proposed in the Report on the Work of the Government.
Price: slight decrease overall. As mentioned above, it is expected that the supply of sand and gravel will increase steadily, while the demand will increase steadily. In such a supply and demand environment, with the increasingly fierce competition among sand and gravel enterprises, it is expected that the price of sand and gravel will maintain a downward trend, but the decline will be limited.