Natural Gas Required for Spray Drying Towers: Where Will Zibo Ceramic Industry Go Amid Surging Costs?

Although a formal implementation timetable has not yet been released, the “Dual-Gas” transformation for Zibo ceramic production zone has entered the pre-inspection and data collection phase. Under this policy, natural gas will be adopted as fuel for both powder preparation and tile firing. Relevant authorities have required ceramic manufacturers to submit written transformation plans.

Once this regulation takes effect, production costs for local manufacturers will rise sharply, reshaping the existing industrial competition landscape. Time is limited for local factories and OEM partners to adjust their strategies. Faced with this new competitive environment, enterprises in the production zone must take proactive steps to seek transformation and break through bottlenecks.

Focus on Manufacturing Excellence and Build Core Competitiveness

The fuel switch brings unavoidable cost pressure, yet it also serves as a catalyst to phase out backward production capacity and upgrade product lines. Business models relying purely on low-volume, low-price sales will no longer be viable. Local Zibo factories need to refocus on manufacturing and strengthen their core advantages through optimized craftsmanship, strict quality control, diversified product portfolios and reliable delivery performance.

On the production side, manufacturers can carry out advance process debugging to adapt to new production curves for natural gas powder making and firing. This helps stabilize powder properties and tile surface effects while preserving the consistent quality reputation of Zibo porcelain tiles. Supported by a mature local supply chain for moulds and glazes, factories can keep developing differentiated textured tile collections, including velvet soft-light tiles, anti-slip dry granule tiles, travertine-look tiles and stone-effect porcelain tiles, to escape low-end homogeneous price competition. Meanwhile, lean production management, optimized scheduling and higher yield rates can offset the rigid cost increase from expensive natural gas.

For OEM-focused factories, it is critical to move beyond simple subcontracting. Enhance full customisation capacity, covering pattern development, size matching, bespoke surface finishes and flexible small-batch orders. Provide one-stop OEM solutions for overseas traders and brand clients, and create extra value to ease pricing pressure caused by higher production expenses.

Diversified Product Portfolio to Avoid Homogeneous Price Wars

A large share of Zibo’s previous capacity was dedicated to conventional polished tiles and standard glazed tiles. These categories have low entry barriers and fierce competition, leaving almost no profit margin when fuel costs climb. In anticipation of the Dual-Gas reform, tile producers should accelerate product structure adjustment and shift toward higher-value categories.

Prioritize textured porcelain tiles, rustic tiles, heavy-duty pavers, wall-and-floor integrated stone-look tiles and anti-slip porcelain tiles for engineering projects. Develop exclusive tile series tailored for residential renovation, full-home furnishing, hotels, commercial spaces and overseas projects. Leverage Zibo’s complete export supply chain to target global B2B buyers. Highlight premium porcelain tiles with superior texture and stable quality, distinguishing Zibo products from generic low-cost tiles from other production areas.

Restructure Sales Channels to Mitigate Business Risks

For the domestic market, reduce over-reliance on wholesale distribution channels. Establish direct, long-term cooperation with full-home furnishing companies, design studios and centralized engineering purchasers. These buyers place higher priority on product stability, on-time delivery and after-sales support, and are generally less price-sensitive, making them ideal clients for high-quality Zibo porcelain tiles with reasonable premium pricing.

Overseas trade remains a key growth engine for the Zibo ceramic cluster. Capitalize on geographical and supply-chain advantages to consolidate core markets including Southeast Asia, the Middle East, Africa and Australia & New Zealand. Invest in independent website content, social media marketing and cross-border B2B platforms to build the brand image of “Zibo-made quality porcelain”, and win lasting trust from international importers and building material distributors through consistent craftsmanship and new product development.

Industrial Collaboration to Build a New Production Ecosystem

It is challenging for a single factory to bear the heavy burden of renovation investment, process upgrading and market expansion alone. Tile manufacturers, glaze suppliers, mould makers and logistics service providers within the zone can explore joint cooperation models. Supporting suppliers can co-develop glazes and additives compatible with natural gas firing processes. Factories may share R&D testing resources and launch group procurement to cut transformation costs. All participants should jointly protect the regional brand of Zibo tiles and refrain from destructive internal price competition.

Closing Remarks

The Dual-Gas transformation is not merely a short-term shock; it represents a profound structural reshaping for Zibo’s ceramic sector. Rising fuel costs will speed up the exit of inefficient capacity. In the long run, this reform will drive Zibo’s transition from an output-focused production zone into a high-quality, differentiated and export-oriented intelligent ceramic manufacturing hub.

Factories that complete process preparation, product upgrading and channel layout ahead of schedule will seize the upper hand once the policy lands. While short-term pressures are inevitable, the Zibo ceramic cluster can maintain its market position and sustain global competitiveness only by consolidating manufacturing strengths and sticking to differentiated development.