Zhongyu Heavy Industry

As one of the important basic materials of the construction industry, sand and gravel is undoubtedly irreplaceable for China's modern construction. The whole industrial chain, especially the upstream mining machinery and downstream concrete & building industries linked by gravel industry continues to improve. The important position of the gravel industry shall not to be overlooked. But we have to admit that the management rules for China’s gravel market are not improved and the main issues are listed as below: 

1. Outdated production technology. Most of the sand plants in China still rely on exploration of natural sand, which will pose great pressure to sand resources and environmental remediation. The crushed sand only account for a small amount of the total produced sand. Compared with the cement production and processing, the mechanization and automation level of sand production is relatively low. Therefore, the demand for sand making equipment is still very large, and will continue to grow, which is a good opportunity for the manufacturers of sand production equipment and promotes some investors into sand industry.  

2.Most of sand production companies in China have small scale and low management level. Besides, natural sand exploration accounts for a big proportion, which causes threat to the surrounding environment. 

3.The industry standard needs to be improved. Compared to other industries, there are less sand and gravel policies and planning; part of the policy and the relevant provisions are relatively backward. Crushed sand production is not as popular as that of cement production. It restricts the development of gravel industry to a certain extent. 

China's economy began to recover since 2013. Although the central government has introduced a series of price control policies, it does not pose much impact on China's real estate. China's cement capacity has experienced smooth growth and the natural sand resources reduce rapidly. Against such backdrop, there will be a significant market opportunity for the crushed sand production.