Sand and gravel, as an important and irreplaceable part of concrete raw materials, is an indispensable basic material in infrastructure construction, and its consumption is huge. In recent years, the price of China’s sand and gravel market has continued to rise, which directly affects the progress of project construction. What caused the tight supply of sand and gravel? There are 3 main reasons for the increase in the price of sand and gravel.
Why the price of sand and gravel will continue to rise
1, China is adjusting its industrial structure and developing towards a high-quality direction. At the same time, it vigorously promotes infrastructure construction, and there is a large demand for sand and gravel. The state has further strengthened the construction of ecological civilization and eliminated backward and unenvironmentally friendly sand and gravel production capacity, resulting in a substantial reduction in the supply of sand and gravel.
2, for a long time, most local government management departments have been relatively lacking in policies, regulations, and management measures for the sand and gravel industry. They have insufficient understanding of the importance and territoriality of the sand and gravel industry. They simply think that quarrying is destroying the environment. Closing old mines and not approving new mines has led to a significant reduction in the production capacity of sand and gravel that originally supported infrastructure construction.
3, backward sand and gravel plants have been eliminated, and environmentally friendly enterprises have closed down, but it takes one to two years to build a modern sand and gravel enterprise, resulting in a large supply gap.
During the investigation, the reporter found that the prices of crushed stone and machine-made sand in southern China are generally higher than those in northern China. There are few sand and gravel resources in the southern region, but the market demand is strong, and there is often a shortage of supply in peak seasons, and prices have risen significantly.
China is the world’s largest producer and consumer of sand and gravel. After years of large-scale mining, natural sand and gravel resources have gradually decreased. In recent years, the amount of sand from major domestic rivers has dropped significantly, causing a short-term imbalance between regional supply and demand. Prices have risen sharply, and low-quality sand and gravel have entered the market. While increasing infrastructure investment and major project construction costs, it also affects the progress of project construction and brings hidden dangers to quality and safety.
How to solve the problem of sand supply?
In order to stabilize the supply of sand and gravel in the market, maintain the overall stability of prices, and promote the healthy and orderly development of the industry, relevant state departments and local governments have attached great importance to them and introduced relevant policies intensively. In November 2019, 10 departments including the Ministry of Industry and Information Technology jointly issued the “Several Opinions on Promoting the High-Quality Development of the Mechanism Sand and Stone Industry”.
Relevant experts said that in order to accelerate the establishment of a regional supply-demand balance, reasonable price, green environmental protection, high-quality and efficient sand and gravel industry system, the proportion of alternative sand sources such as manufactured sand and gravel should be gradually increased, production and sales layout should be optimized, and manufactured sand should be listed as a strategic emerging Key industry products and services.
The survey shows that currently, manufactured sand and gravel are gradually replacing natural sand and gravel to fill the market demand, which has accounted for about 70% of the construction sand and gravel. The sand and gravel aggregate produced by the comprehensive utilization of solid wastes such as construction solid waste and road construction cave residues and tailings waste rock has gradually become an effective supplement to the current sand and gravel market. The corresponding technology of sea sand desalination has made breakthroughs, and the improvement of the standard system is starting.