In 2022, China's economic development was hit by multiple unexpected factors at home and abroad, such as the Covid-19 epidemic, thereby the overall economic operation of Chinese aggregates industry was characterized by "weakening demand and lower output and declining price".

In 2022, the supply and demand of aggregates were generally weak. On the supply side: the operating rate of production lines and the utilization rate of production capacity were generally low; on the demand side: the demand for aggregates shrank. From the perspective of supply and demand, the supply exceeded demand throughout 2022, and the inventory of enterprises remained high. The national aggregates output in 2022 was 17.42 billion tons, down 11.5% from 2021.

In 2022, the price of aggregates continued to decline. In December 2022, the comprehensive average price of aggregates nationwide was 109 yuan/ton, with a year-on-year decrease of 7.0% in December. The prices of machine-made sand, natural sand, and crushed stone also decreased to 100 yuan/ton, 135 yuan/ton, and 94 yuan/ton, respectively. The prices of aggregates in cities along the river and along the coast also decreased by 4.8% and 9.5% respectively compared to the beginning of the year.

In 2022, 719 new aggregates mining rights were released nationwide. The number of two mineral types (sand for construction and limestone for construction), are the largest. The proportion of ultra-large type and large type of aggregates mining rights has increased, while the proportion of medium and small aggregates mining rights has decreased.

In terms of the transfer price of new aggregates mining rights, the transaction prices of newly established aggregates mining rights in Zhejiang and Hainan provinces were 15.5 yuan/ton and 14.0 yuan/ton respectively, ranking the top two in the country, down 49% and up 4% year-on-year respectively, while the transfer price of newly established aggregates mining rights in 9 provinces including Liaoning and Guizhou provinces was within 1 yuan/ton.

In terms of aggregates producers, the operating rate and capacity utilization rate of aggregates producers both fell at the beginning of the year and the end of the year, and remained at a relatively high level in the middle of the year; the average daily shipments of key aggregates producers operated at a high level in the fourth quarter, and remained low at other times.

Development outlook in 2023

Supply: The supply of aggregates is expected to rise steadily. On the whole, the situation of aggregates shortage in China no longer exists. Except for some areas, the supply of aggregates in most parts of China is sufficient. In 2023, with the relaxation of epidemic prevention and control and the gradual release of the production capacity of aggregates production lines, the supply of aggregates will increase steadily.

Demand: The demand for aggregates is expected to increase steadily. In terms of the real estate market, with the effective implementation of relevant policies, the real estate market will gradually have positive changes, and the demand for aggregates will grow slowly; in terms of infrastructure construction, the government work report pointed out that it will focus on supporting infrastructure such as transportation, water conservancy, energy, and information and people's livelihood projects, and continue to promote new urbanization. Furthermore, the government will actively expand effective investment and promote stable investment growth, thereby infrastructure investment is expected to maintain rapid growth. In particular, the "3.8 trillion special bonds" and "major projects" proposed in the government work report will form a strong support for aggregates demand. Overall, the demand for aggregates in 2023 is expected to increase.

If you want to get the full text of the 2022 China Aggregate Industry Operation Report, please contact
International Cooperation Department of CAA
Ms. Xu Beibei
Email: xubeibei@zgss.org.cn