In 2022, after two unprecedentedly difficult years, the marble and granite market faced new challenges. The energy crisis, inflation, problems in the supply chain and the situation in China characterised the past year. However, the industries have managed to cope and restore the market to pre-pandemic levels.
The major international obstacles
The global energy crisis started in 2021 due to various factors, including the rapid economic recovery after the pandemic. The situation escalated dramatically following Russia’s invasion of Ukraine in February 2022. Higher energy prices led to a surge in global inflation, which in the third quarter of 2022 exceeded 9.8%, approaching its highest level in 40 years. Meanwhile, despite the improvement, supply chain problems and high transport costs persisted, making imports and exports even more difficult.
China, the marble and granite market and the rise of ceramics
The Chinese and US markets influence imports and exports of marble and granite worldwide. China accounts for 66% of world imports of marble blocks and slabs and over 50% of granite blocks and slabs. The United States accounts for over 32% of world imports of processed marble and about 25% of processed granite imports.
In China, since the pandemic outbreak, strict containment measures, the crisis in the construction industry, and high transport costs have significantly reduced imports of only marble blocks and slabs, leaving imports of granite blocks and slabs unaffected. According to China’s latest import statistics, between the nine months of 2018-2022, a -17.74% drop in the import value of marble blocks and slabs was recorded, while granite blocks and slabs imports remained stable, registering a marginal increase of +0.6%.
During that time, China’s exports of processed marble and granite increased. Specifically, between the nine months of 2018-2022, exports of processed marbles increased by +8.78% and processed granites by +6.45%. The 2022 surge drove Chinese exports to a five-year record high. The above, combined with the declining imports of marble blocks and slabs, shows that Chinese industries have tapped into their stockpile to meet the rising demand.
In the US, between the nine months of 2018-2022, the import value of processed marble increased by +31.77% and granite by +11.41%.
These changes, combined with other major international markets, have had a decisive and different impact on the main supplier countries. A typical example is Turkey and Greece, two countries that, in previous years, exported large quantities of marble blocks and slabs to China.
In the marble exports of Turkey, the world’s largest marble exporter, the share of processed marble in the total export value in the first nine months of 2018 was 49.26%, while in 2022, it was 68.01%. In Greece’s exports, the share of processed marble in the total export value in the first nine months of 2018 was 33.01%, while in 2022, it was 52.58%.
In Italy, the situation is different. It maintains a stable balance in exports between marble blocks and slabs and processed marble. Between the nine months of 2018-2022, the export value of processed marbles registered an increase of +2.88%, while the marble blocks and slabs decreased by -18.66%. In the first nine months of 2018, the share of processed marbles in Italy’s total export value was 70.23%, while in 2022, it was 74.9%.
In the granite exports of India, the world’s largest granite exporter, the share of processed over total export value in the nine months of 2018 was 60.93%, while in 2022, it stood at 67.16%.
Among the challenges faced by the companies is the high rise of ceramics that, according to statistics, are taking market shares from marble and granite products. Between 2017-2021, the global import value of ceramics increased by +34.56%, marble by +14.89%, and granite decreased by -4.25%.
Restoration of international exhibitions
On the positive side, 2022 saw the resumption of international trade fairs, contributing to the sales increase. Most importantly, it helped the psychology of the market, as after almost two years, its people had the opportunity to meet face-to-face again. Stonenews.eu was at four major market exhibitions, Marble Izmir Fair, Marmomac, The Big 5 Dubai, and Build Expo, and noted the excellent atmosphere but, at the same time, the cautious optimism that prevailed during them. Also, despite the absence of China, we noticed a big difference in the number of exhibitors and visitors compared to 2021.
