The possibility and necessity of China's stone enterprises to open up the Ukrainian market are mainly reflected in the following aspects:
1. China's stone resources are abundant, and decorative stones such as granite and marble are spread all over the country.
2. China is a stone exporting country with more than 30,000 stone enterprises and a group of more powerful stone export enterprises.
3. The domestic stone market is highly competitive, and enterprises have export demand:
(1) Since 2005, as the price of coal, electricity and oil has continued to rise, the cost of stone transportation has also faced a new round of climbing.
(2) With the cooling of the real estate industry, the overall demand for stone has entered a relatively depressed period.
(3) At the same time that production and market are gradually concentrated, China's stone industry has also formed a nationwide “small, earth, scattered, chaotic†situation and low-level redundant construction investment. The competition in the factory is becoming increasingly fierce.
(4) The disorderly competition is very obvious, and the profit margin of the stone enterprise domestic market is getting smaller and smaller.
4. From the perspective of various technical standards of international stone, there are certain differences between EU and US stone standards and Chinese standards. The formulation and revision of China's stone industry product standards can not meet the needs of international market competition. The entry barriers for Europe, the United States, Japan and South Korea are high.
5. The adjustment of stone export tax rebate and the cancellation of some product tax rebates have a great impact on the export-oriented provinces such as Fujian and Shandong. The enterprises have increased the cost of export, but the stone products cancelled by export tax rebates are mainly blocks. The export tax rebate rate for other finished and semi-finished products remained at 13%. The export volume of Ukrainian exports accounts for about half of the total exports.
6. Due to the changes in the export situation, on the one hand, my stone enterprises have increased the intensity of developing deep-processing products; on the other hand, many stone enterprises have turned to domestic fights, causing the market to be oversupply. However, in the past, more export-oriented enterprises have insufficient grasps on the domestic market. If they cannot adapt in the short term, they will bring greater operational risks to enterprises.
7. There is still a certain gap between China's stone mining and processing machinery compared with Italy, Germany and France. The price advantage has enabled export enterprises to win a large amount of profits, and has also suffered severe sanctions from various importing countries' trade policies (anti-dumping). The most serious tools are superhard tools like diamond tools and saw blades.
Based on the above factors, it is inevitable that Chinese stone enterprises will turn their attention to the promising Ukrainian market.
In fact, Ukraine itself has a huge natural stone reserves, and its texture is excellent, with the world's second largest near-surface crystalline geological structure. According to statistics from American geologists, Ukraine's stone reserves are about 6.5 billion cubic meters. The most abundant reserves of natural stone are granite, gabbro and basalt. This is also the main stone export product of Ukraine. However, the reserves of marble are relatively small. It needs to be imported from abroad.
Due to factors such as backward mining and processing technology and outdated equipment, the bulk of the stone exports in Ukraine accounted for more than half of the total exports. The amount of stone mined each year is only about 250,000 cubic meters. The backwardness of mining methods has caused waste of resources. However, in the past two years, the price of Ukrainian stone products has increased by 20%-25%, and the profit margin of enterprises is relatively large.
In the past two years, with the domestic economic recovery and the comprehensive launch of infrastructure projects, the demand for stone products is strong, and the stone industry is exploding. However, the Ukrainian stone industry started in the modern sense late, and the domestic stone output could not meet the domestic market demand. In 2007, Ukraine's stone market capacity was 1.2 billion US dollars, a large part of which needs to be imported.
China's stone blocks are sold very well in the Ukrainian market, including G-633, G-664, G-439, Tiger Skin, and Taishan Red. Although China's product quality is not the best, but the price is the most reasonable, which is the main reason why Chinese stone is popular in Ukraine.
In addition, there are many natural harbors in Ukraine, of which Sevastopol, Odessa and Kerch are important military ports and commercial ports. "Black Sea Pearl" Odessa Port is the largest international cargo port in Ukraine and even the Black Sea coast, with an annual throughput of more than 50 million tons. The seven-kilometer market in Odessa and the twenty-five-kilometer market in Odessa are the largest commodity distribution centers in Ukraine and neighboring countries. Many commodities are from here to the CIS and other countries in Eastern Europe. Therefore, this is also a springboard for Chinese stone to enter the CIS market.
Some people may say that the market is vast, but we are small businesses that have not been involved in the market. Is it harder to enter than to climb the sky? Don't be discouraged, don't worry, as long as the quality of your products is hard enough and the price is good enough, as a multi-year trading service for the CIS, you will be able to help you enter this fertile market.
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