Talking about the Four Development Difficulties of Abrasives in China

As we know, abrasives are often referred to as the "teeth of industry," and their significance remains unmatched to this day. Despite China having established itself as a leading producer of abrasives, the industry still faces several significant challenges. Over the past decade, China's abrasive sector has undergone various market adjustments, gradually shaping the current landscape. However, while China may be a major player in the global abrasive market, it has yet to emerge as a dominant force. One of the most pressing issues within the industry is the fragmented nature of production capacity. Although the total output has reached considerable levels, the specific capacities remain scattered across numerous smaller enterprises. This decentralization leads to inefficiencies and limits economies of scale. Consequently, the overall industrial concentration remains low, with many small firms dominating the market. This has a negative impact on both corporate competitiveness and environmental sustainability, hindering progress toward cleaner production methods and technological innovation. Another major concern is the issue of overcapacity. This is particularly evident in the corundum segment of the industry. Excess capacity combined with a glut of low-end products has made it increasingly difficult for manufacturers to stay competitive. For instance, the summer months, especially July, have seen further complications due to severe drought conditions in southern China, particularly in regions like Guizhou. These conditions have led to electricity shortages, forcing many smelting facilities to halt operations entirely. Furthermore, China's abrasive industry struggles with weak R&D capabilities. While the country has achieved remarkable success in becoming a leading producer of abrasives, the quality and technological sophistication of these products still lag behind global standards. A significant portion of high-end technology products must be imported, leaving domestic manufacturers unable to meet the demands of critical sectors such as automotive manufacturing, aerospace engineering, machinery production, and shipbuilding. Additionally, most exported products remain at the middle-to-low tier, with average export prices being just one-tenth of those for imported goods. Lastly, energy conservation and emissions reduction remain key areas requiring substantial improvement. The abrasive industry, which relies heavily on energy-intensive processes, faces challenges in meeting environmental regulations. With the government planning to phase out outdated production capacities in the corundum sector, there will likely be further consolidation within the industry. Efforts to shut down inefficient smelting facilities and promote larger, more efficient operations could help address these issues, but they also pose risks to smaller businesses struggling to adapt. In summary, while China’s abrasive industry has made significant strides, it still faces numerous obstacles. Addressing these challenges will require concerted efforts from both government agencies and private enterprises to foster innovation, improve efficiency, and ensure sustainable growth.