Overheated investment in the hottest container ind

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Overheated investment in the container industry

since the second half of 2004, the container manufacturing industry has set off a new round of investment boom, especially the production capacity of the standard dry cargo container manufacturing industry has expanded sharply, and the contradiction between supply and demand has emerged

due to the rapid development of the container shipping market, the container manufacturing industry maintained strong market demand from the end of 2003 to the first half of 2005. In the middle of 2004, the sudden prosperity of plastic granulator technology in the shipping market to solve the problem of waste foamed plastics made container product orders surge, and container prices continue to rise. At the same time, two major manufacturers in the container manufacturing industry, CIMC group and lion group, have achieved good investment returns in recent years, leading investors to be overly optimistic about the profitability of container manufacturing. Investors led by major international shipping companies have invested in building container factories in Chinese Mainland

containers are mainly divided into dry cargo containers, refrigerated containers and tank containers. The application of waste foam granulator in China the capital production of standard dry cargo containers accounts for more than 95% of the world's output. Compared with the latter two kinds of containers, dry cargo containers have low technical content and serious repeated construction

according to the statistics of China Container Industry Association, the maximum production capacity of the whole industry has reached 4.5 million TEU (the unit of measurement of containers, 20 foot TEU), while the market demand in 2005 was only 2.2 million TEU, which can be customized with unique colors and sizes. The supply-demand ratio was as high as 2:1. The industry recognized that the reasonable proportion was that the maximum production capacity was 1.3 times the demand

according to Li Yinhui, vice president of CIMC with an international market share of more than 50%, the repeated construction has reduced the return on capital of the container manufacturing industry, and the capacity utilization rate is expected to decline. At present, the standard dry cargo container manufacturing industry has faced a rapid decline in orders, and the industrial prosperity of the previous two years has ceased to exist

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