Wedoany.com Report on Mar 2nd, The China Sand and Gravel Association recently released the "2025 China Sand and Gravel Industry Economic Operation Report," which shows that in 2025, China's total sand and gravel output was 13.9 billion tons, a year-on-year decrease of 8.9%. The comprehensive price index was 76, down by 9.2%. This marks the fifth consecutive year of simultaneous declines in both volume and price, indicating the industry has entered a period of deep adjustment.
The report points out that sand and gravel production in 2025 showed phased differentiation. Output in the first half of the year was 7.3 billion tons, a decrease of 4%. In the second half of the year, as demand weakened, the decline expanded to 15%. Low-price disorderly competition has damaged the industrial ecosystem, with prices approaching the break-even point for some enterprises.
Although various regions are advancing the integration of sand and gravel mining rights, leading to a reduction in the number of mining rights, the total production capacity has not significantly decreased. The comprehensive utilization of tailings, waste rock, construction solid waste, etc., to produce sand and gravel aggregates has increased. In particular, the output from "development-style governance" mine ecological restoration projects has grown, continuously impacting the market.
In 2025, the average operating rate for sand and gravel enterprises across China was 60%, with a capacity utilization rate of 34%. Affected by weather and holidays, these rates dropped to 42% and 20% respectively in January-February. From March to December, the operating rate was 64% and the capacity utilization rate was 37%, highlighting the prominent issue of overcapacity.
2026, as the first year of the "15th Five-Year Plan," will see China prioritize stabilizing the real estate market and promoting urban renewal, among other key tasks. It is expected that the decline in sand and gravel demand will narrow. However, the situation of supply exceeding demand will be difficult to reverse in the short term. It is necessary to regulate the total number of mining rights, strictly control new production capacity, promote the industry's transformation towards high quality, green development, and intelligent manufacturing, and build a healthy industrial ecosystem.
