Price of 600×1200 (mm) Tiles Drops 40% YOY in Zibo

13 Dec 2018/CTW

Two years ago, 600×1200 (mm) tile is counted as as large-sized tiles in China’s ceramic industry. At that time, there were just a few brands dealing with that specification while numerous brands had zero stock, and only made some samples.

However, since the second half of 2017, enterprises in Zibo have gradually promoted  600×1200 (mm) tiles as regular products, which resulted in the price gradually coming down over time. According to the insiders from the Zibo production area, after the Zibo Ceramics Expo held in September, the final price of 600×1200 (mm) tiles will also fall down. 

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600×1200 (mm) Tiles Booming within One Year in Zibo

The 600×1200 (mm) tiles were booming in Zibo at the end of 2017. Some insiders believed that it is the result of two main factors. On the one hand, Zibo itself has some potential high-end customers; on the other hand, its existing tiles in 800×800 (mm) which is the main specification has no competitive advantages compared with that of other production areas. Currently, 600×1200 (mm) tiles are mainly promoted by the tile enterprises in Guangdong and Zibo.

Huge Sales in the South

What are the advantages of 600×1200 (mm) tiles? Zhang Chao, a staff of the Marketing Department of the Gold Lion King Ceramics, said that this specification is more in line with current visual and aesthetic pursuits of fashion and simplicity. He also introduced that compared with the size of 600×600 (mm) and 800×800 (mm), the 600×1200 (mm) can create a more complete and stereoscopic effect. With less seams, it is low maintenance and presents an elegant effects of space. Besides, it is more conform to the building modulus and can be installed diretly or cut into various matching sizes such as 300×300 (mm), 300×600 (mm), 600×600 (mm), 100×1200 (mm) and 200×1200 (mm), which are suitable for different installing ways and palces.

As the 600×1200 (mm) tile is currently sold at a high price in the terminal, it has better sales in coastal cities and south of the Yangtze River than the other regions in China. Mr. Chen, head of an OEM in China Fortune Ceramics City, said that since the promotion of this specification at the end of 2017, sales in the southern market, especially in Jiangsu Province, Zhejiang Province and Shanghai, have shown good performances as the household area in the southern market was generally larger than that in the north, and customer there were accustomed to “using floor tiles on the wall”, the 600×1200 (mm) ceramic tiles can be used more widely.


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Manufacturers’ Profits Going Down

Compared with bigger specifications such as 900×1800 (mm) and 1600×3200 (mm), the production line only needs to change a set of press moulds in order to produce 600×1200 (mm) tiles. In contrast with the 800×800 (mm), its manufacturing cost is almost the same.

However, the enterprises producing the 600×1200 (mm) have multiplied at an astonishing rate, which leads to a continued drop in its price. But Xie Xiaodong, director of Baoli Bona Ceramics said that distributors can make it as a profitable product by guiding designs and improving service. After all, its final price is not quite transparent.

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Final Price might Declining in September

However, as the number of manufacturers of producing 600×1200 (mm) tiles is on the rise, the high price will not last too long. Some insiders predicted that, after the Zibo Ceramics Expo, the price would decline in China market..

During the Expo, enterprises will exhibit 600×1200 (mm) tiles with naturally more transparent prices. And referring to rules of previous years, enterprises in the Expo generally will lower the price for the dealers,.Therefore, the final prices will fell accordingly. "In fact, the OEM price 600×1200 (mm) tiles has already fallen in Zibo. For some manufacturers, the OEM price has even plummeted by 40% compared with the year earlier. The insider said the wholesalers are the largest customer group of this kind of tiles.

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