On April 26, 2014, the China Refractories Industry Association held a joint sales meeting of major magnesium refractory products manufacturers in Yingkou Qinghua Group, Dashiqiao City, Liaoning Province. The companies participating in the meeting are: Hongyu Refractory, Yingkou Blue and White Group, Liyang Punai Co., Ltd., Zhejiang Zili Group, Zhejiang Fuziling Group, Sinosteel Refractory, WISCO Refractory, Jinan Magnesium Carbon Brick, Jiangsu Sujia Group, Yingkou Jinlong Group, Rui Thai Technology, Haicheng Huayu Group, Liaoning Jinding Group, Anshan Aoan Refractory, Liaoning China Magnesium Group, Fucheng Group, Fenghua Industry, Jinhui Group, Sanhua Group, Qunyi Group, Sanqiang Refractory, OMG Trading, Huai Lin Refractory, Yingkou Xinli, Yingkou BL Mining, Xinghua Magnesium Mine, Zhengzhou Zhendong Technology, Zibo Luzhong Refractory, etc. Liu Baikuan, President of China Refractories Industry Association, Xu Dianli, Executive Vice President, Wang Shoubin, Wang Baicheng, Shi Daye, Vice President Chen Jianxiong, Liao Pin, Director of Industry Division 1 of Liaoning Industrial Special Resources Protection Office, Lukou of Yingkou Refractories Association Vice Chairman Liu Yingmin and Secretary-General Wang Chaoyang attended the meeting. Chairman Liu Baikuan chaired the meeting.

        Xu Dianli, Executive Vice President of China Refractories Industry Association, briefed the meeting on the production and operation of the refractory industry and the main downstream industries in the first quarter of 2014, reviewed the development history of China's magnesium refractory industry since the 1990s, and focused on the introduction. In recent years, the phenomenon of oversupply due to severe overcapacity in the magnesium refractory market in recent years has led to oversupply, low-price competition, and disordered market order. The main downstream industry of refractories, the steel industry, operates at high debt ratios, and profits continue to decline, and losses continue to decline. Expanding reality, he hopes that magnesium refractory manufacturers should calmly analyze, rationally respond, strengthen communication, take positive measures, regulate market order, and safeguard common interests.

         Participants had a serious and lively discussion around the many problems in the current magnesium refractory market and the measures to be taken to regulate the market order. Everyone believes that the current market of magnesium refractory materials is chaotic. From the perspective of the industry as a whole, one is that there is a serious overcapacity, oversupply of products, unbalanced supply-demand relations, and intensified disorderly competition; second, low concentration of production, enterprises acting on their own, and suppliers The right to speak is lost, and the demand side irrationally reduces prices. From the micro level of the enterprise, the first is that the capacity utilization rate is reduced, and the production and operation pressure is increased; the second is that the degree of automation is not high, and the labor cost and energy consumption of the enterprise are high; and the third is that the sense of innovation is not strong, the management efficiency is poor, and the enterprise development Insufficient stamina. For industry-wide issues, industry associations at all levels are calling for coordination, but it is difficult to implement the elimination of backward production capacity without administrative means; it is also difficult to regulate market order by industry self-regulation alone. In recent years, in order to increase the concentration of production, some advantageous enterprises have promoted reorganization and mergers and acquisitions, and expanded the size of the enterprise. However, the situation of low overall concentration of production in the industry has not fundamentally changed. At the micro level of the enterprise, due to the increasingly fierce competition in the refractory market in recent years, the production and operation conditions have deteriorated. In order to survive, companies can only maintain their operations with the helplessness of low-price competition, which has led to increased competition in the entire refractory market. Disorder.

        How to solve these problems, the delegates suggested that the competent government departments should introduce industry access conditions as soon as possible, strictly enforce industry access, comprehensive production scale, technology, equipment level, environmental protection, and energy saving indicators, and raise the entry threshold; industry associations should promptly reflect Enterprise demands, cooperate with the competent government departments to formulate and implement specific measures for access conditions, and recommend the introduction of relevant policies to promote joint reorganization of enterprises and increase industrial concentration. While calling on magnesium refractory manufacturers to base themselves, enhance their awareness of innovation, improve management, respect market laws, and strengthen industry self-discipline, the participants also hope that key companies in the industry will play a leading role, increase restructuring, mergers and acquisitions, and improve the industry. Concentration, put an end to low-price competition, safeguard the overall interests of the industry, and jointly create a good refractory market order that cooperates and competes in cooperation.

         The meeting held that it is the common goal of everyone to regulate the market order of refractory materials and promote the sustainable and healthy development of the magnesium refractory industry. Facing the severe situation of the current fierce competition in the magnesium refractory market, while pinning on the government authorities to issue industry access standards as soon as possible, eliminate outdated production capacity, and alleviate the serious overcapacity contradiction in the industry, enterprises must start from promoting the common development of the industry. Starting from the overall situation, we will focus on structural adjustment, focus on management improvement, strengthen industry self-discipline, and maintain market order. In view of the current situation of oversupply of the magnesium refractory market, it is recommended that enterprises, especially large enterprises, start from seeking their own benefits and safeguarding the overall interests of the industry, take the overall situation into consideration, support each other, and realize common interests.

        The conference hopes that, on the basis of cooperating with the competent government departments to strengthen the industrial macro-control, the industry associations should respond to the objective needs to promote the sustainable and healthy development of the refractory industry, change the supply-demand relationship in the refractory market, and the production and operation conditions of downstream industries. The Anti-Unfair Competition Law of the Republic, the Price Law of the People's Republic of China, and the Quality Law of the People's Republic of China, etc., amended the Convention on the Regulations of the Chinese Refractories Industry. The meeting considered that the "Compendium of Self-Regulatory Guidance Prices for Refractory Products" was compiled by the Association on the basis of careful investigation and research, and extensively soliciting opinions, taking into account product production costs and objectively reflecting market supply and demand trends. The right of speech and pricing in the process provides a basis, and it also effectively eliminates or relatively reduces the low-price competition in the refractory market. According to the current market situation, the Association is recommended to revise and continue to publish the Compilation of Self-Regulatory Guidance Prices for Refractory Products as soon as possible.

        In his concluding speech, President Liu Baikuan said that competition is an inevitable product of a market economy, and competition is also the driving force for the development of enterprises. The refractory industry is now facing many difficulties, but also full of opportunities. In this extraordinary period, everyone should be full of confidence, seize the opportunity, speed up the pace of joint reorganization, build refractory aircraft carriers, and increase industrial concentration. In this extraordinary period, while companies should refine their management and practice their "internal skills", they should adhere to market orientation, formulate plans according to market needs, organize production, follow market rules, and do a good job of product marketing. They should also strive for conditions Improve the level of technology and equipment as soon as possible, and promote the healthy and sustainable development of the enterprise by strengthening innovation in ideas, technology, and management. He also hopes that the Association will, as soon as possible, revise the "Convention on the Rules of the Chinese Refractories Industry" in accordance with the opinions and suggestions of the participants, and issue the "Compilation of Self-Regulatory Guidance Prices for Refractory Products" as soon as possible. In the end, President Liu Baikuan also reminded companies to pay special attention to the high debt ratios of major downstream industries, strictly enforce contracts, and take back funds to ensure the normal operation of the company's capital chain.

        On the afternoon of the 26th, President Liu Baikuan and Executive Vice Chairman Xu Dianli also hosted a forum of responsible persons of some key enterprises and heard the introduction of the production and operation status of each enterprise this year. We also sought everyone's opinions on the prominent contradictions, common problems and coping methods and solutions in the development of the refractory industry.