Editor's Note
This editor’s note highlights the key facts and market implications behind “Overcapacity and Plummeting Orders: Chinese Cera”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
China's real estate market continues to decline, impacting the ceramics and building materials industry. In the past month, at least eight ceramic companies nationwide have filed for bankruptcy liquidation, including two in Foshan, Guangdong. Foshan, a major ceramic hub, has seen some companies announce unpaid long holidays to clear inventory backlogs. According to statistics from ceramic industry media and the National Enterprise Bankruptcy Reorganization Case Information Network, from May 20 to June 23, 2025, at least eight ceramic companies entered bankruptcy proceedings nationwide. These include Xinjiang Xinzhuan Ceramics, Xinjiang Qiangtao Technology, Xinxing County Zhitao Ceramics, Xiangtan Wutao Machinery, Anyang Xinshun Ceramics, Jiangxi Zhongtao Ceramics, and Foshan's Meier Ceramics and Yitao Ceramics Import & Export Co., Ltd. Among them, Foshan Meier Ceramics had its bankruptcy application accepted by the Foshan Gaoming District Court on May 27 due to a concentrated debt crisis. Mr. Zhong, a person in charge of a ceramic factory in Foshan's Shiwan Town, told The Epoch Times on July 17 that at least five companies in the Guangdong ceramic production area had closed in the first half of the year alone. He said:
“The fundamental problem is overcapacity and insolvency. There are almost no orders, and the warehouses are full of tiles. Storage costs alone are over 10,000 yuan (RMB) per month. Many companies have arranged four months of unpaid leave starting July 1, and will reassess whether to resume work in October. But no one is sure they can hold on.”
Data from Taoci.com shows that in the first half of 2025, only 18 new or technologically upgraded ceramic kilns were put into operation nationwide, a drop of more than half compared to the same period last year. Data from Zhongtao.com indicates that Foshan's wall and floor tile production fell 13.3% year-on-year, with the kiln startup rate at only 60%, reflecting a deep industry downturn. As of the end of 2024, Foshan had 27 building ceramic production enterprises, with a total of 138 production lines, including 135 ceramic tile lines and 3 ceramic roofing tile lines. The daily production capacity was 1.728 million square meters of tiles and 135,000 pieces of ceramic roofing tiles. While production shrinks significantly, many ceramic companies are seeking self-rescue through asset auctions. It is reported that three weeks ago, the administrator of Qingyuan Jianci Ceramics Co., Ltd. also auctioned the company's land (over 70,000 square meters) and more than 20 above-ground buildings in Heyun Town, Qingxin District, on the JD.com auction platform, but the auction ended in a no-sale. Additionally, the administrator of Guangdong Xinshun Ceramics Co., Ltd. announced a public auction on July 20 on Taobao's Alibaba Asset Bankruptcy and Liquidation Platform for the company's land use rights, above-ground buildings, equipment, vehicles, trademarks, and accounts receivable. The ceramic industry is energy-intensive. Facing the dual pressure of plummeting orders and high costs, small enterprises are particularly struggling. Mr. Wu, a management staff member at a ceramic company in Yunfu, Guangdong, pointed out:
“Rising natural gas prices combined with bank loan pressure make it almost impossible for small manufacturers to hold on. Large companies can still lay off workers and cut production lines, but small ceramic companies have no room to maneuver. Many can only head toward bankruptcy.”
The current market adjustment is accelerating the industry's consolidation trend. Mr. Wu said that industry insiders generally believe that traditional production areas like Foshan are undergoing a deep integration phase, and the exit of small and medium-sized enterprises may further intensify in the future.
Huang Ke (pseudonym), a Chinese real estate developer living overseas, told The Epoch Times that the construction and ceramic industries have always been closely linked. Tiles are widely used in kitchens, bathrooms, window sills, and other interior decoration areas, and their market demand is highly dependent on real estate development. "But now, with housing sales continuing to be sluggish and new projects significantly decreasing, it means decoration demand has plummeted. Naturally, tiles are not selling."
At the same time, China's ceramic product exports are also facing difficulties. Huang Ke said that due to multiple factors such as Sino-US trade friction, cooling overseas real estate markets, and weak global economic recovery, foreign orders have significantly decreased. "Weak domestic sales and declining foreign trade—mainland ceramic manufacturers are almost caught in the middle with no room to move."
He admitted that the ceramic industry, like real estate, was once booming but has now lost its glory and is entering an unprecedented winter.
Source: Read the original article | Published: July 17, 2025