Overview of China's aggregates industry in 2023

In 2023, the production and prices of Chinese aggregates continued to decline, but the decline was smaller compared to 2022. The per capita aggregates production was 12.4 tons/person, down 3.3% compared to 2022. Some aggregates producing enterprises experienced varying degrees of decline or even losses in net profit. China's aggregates industry has entered a new stage of development from incremental expansion to both improving stock quality and efficiency and adjusting incremental structure.

Supply and demand: In 2023, the national aggregates production was 16.835 billion tons, down 3.35% compared to last year. On supply side, in recent years, the enthusiasm for domestic investment in aggregate projects runs high. Many large central enterprises, state-owned enterprises, and local platform companies have successively laid out their aggregate business, effectively promoting the industry towards scale and green development, especially the release of aggregates production capacity in coastal areas along the river. The risk of overcapacity in aggregates production across the country has begun to emerge. The market is in a state of oversupply. On the demand side, real estate investment is still declining, and infrastructure investment continues to drive, but the driving effect of infrastructure on aggregates market is limited. Overall, the effective demand for aggregates is clearly insufficient.

Prices: Prices are on a downward trend overall, falling to their lowest level in nearly four years. In December 2023, the comprehensive average price of aggregates in China was 105 yuan/ton, down 2.7% from January 2023, of which, the average price of manufactured sand in December was 94 yuan/ton, the average price of natural sand was 132 yuan/ton, the average price of crushed stone was 90 yuan/ton, the price of aggregates in cities along the river was 110 yuan/ton, and the price of aggregates in coastal cities was 106 yuan/ton.

In terms of new mining rights: the bidding of mining rights of aggregates producing enterprises tends to be rational, and the phenomenon of run-off, termination and suspension occurs from time to time. There were 915 new aggregates mining rights in China (completed), of which 240 new aggregates mining rights were established in Xinjiang. Among the new aggregates mining rights, the proportion of super large and large mining rights has increased compared with 2022, and the proportion of medium and small mining rights has decreased.

In terms of the transfer price of new aggregates mining rights, the average price in Jiangsu is 23.5 yuan/ton, ranking first in the country, while the average price in Gansu, Yunnan, Jilin, Liaoning and Guizhou is within 1 yuan/ton.

In terms of aggregates enterprises, the capacity utilization rate and opening rate of China's aggregates enterprises have maintained a high level in other months except for the low operation at the beginning of the year. The average daily shipments of key enterprises ran at a low level from January to February, and rose to 16.94 million tons/day from March to December.

As of the end of 2022, there are 11039 aggregates mining rights within the valid period in China, of which Guizhou province and Yunnan province have the largest number of aggregates mines, 1653 and 1089 respectively; In terms of mining area, the number of aggregates mining rights below 0.1 square kilometers is the largest, 5476; From the perspective of the term of mining rights, the number of sand and gravel mining rights valid within 10 years is the largest, which is 9,950.

If you want the full text of the 2023 China’s aggregates industry operation report, please contact 

International Cooperation Department of CAA

Xu Beibei

Email: xubeibei@zgss.org.cn