What is the market outlook for cast brick production?

Casting and brick-making (exposed brick, blue brick, blue tiles) The market prospects are very promising. It is a high-quality track characterized by strong policy support, steady demand growth, cost advantages, and being at a critical juncture for industry transformation.

Four Core Prospective Advantages

1. Policy: The Strongest Growth Opportunity—Driven by a Dual Engine of “Mandates + Subsidies”
Forcification
The “Ten Measures” (2026) stipulate that the comprehensive utilization rate for bulk industrial waste must reach at least 60%, with foundry sand and dust collection ash designated as key materials for disposal.
The ban on clay mining and the imposition of routine environmental production restrictions are accelerating the closure of small, uncompetitive plants.
Threshold for establishing a new brick factory: annual production capacity of ≥100 million bricks and a fly ash content of ≥50%.
Fiscal and tax benefits (directly boosting profits)
Value-added tax immediate collection and immediate refund: 30%–70%
Disposal subsidy: RMB 10–50 per ton (additional disposal fee can be earned by co-processing foundry waste).
Central budgetary investment subsidy: 15% of the total project investment, with a cap of RMB 100 million.
Mandatory Green Procurement: Municipal and Affordable Housing Projects to Prioritize Procurement of Green Building Materials

2. Cost: 20%–40% lower than traditional brick manufacturing, with cyclical resilience.
Raw material cost ≈ 0: Foundry waste sand and dust collection ash are essentially free, and in some cases even fetch a disposal fee of RMB 20–50 per ton.
Fuel savings of 30%–80%: Contains residual carbon, can be used as internal combustion fuel, significantly reducing reliance on imported coal and gas.
Overall cost: bricks, RMB 0.25–0.35 per piece; traditional clay bricks, RMB 0.35–0.50 per piece.
Selling price: Plain-fired bricks and blue bricks can be sold for RMB 0.40–0.60 per piece (with higher prices for high-end antique-style bricks), yielding a gross profit margin of 35%–50%.

3. Demand: Rigid Growth in Three Major Scenarios
Urban Renewal / Affordable Housing: Demand for exposed brick and structural brick remains stable, with green building material certification now serving as a mandatory准入 requirement.
Historic Architecture / Cultural Tourism / High-End Chinese Style: Blue-brick and blue-tile designs command a strong cultural premium, resulting in stable order volumes, prompt payments, and minimal price competition.
Rural Revitalization: Large-scale and widespread projects involving historic-style buildings, traditional residences, and road construction favor low-cost, high-strength, antique-style bluish-gray products.

4. Competitive Landscape: Blue Ocean, Low Market Concentration, Ideal Entry Point
Industry overview: Approximately 12,000 companies operate in the sector, with a CR10 of less than 15%, indicating extreme market fragmentation.
Trend: Consolidation toward larger firms, with the number of enterprises expected to decline to no more than 2,000 within five years.
Opportunity: New, resource-backed, scalable, and environmentally compliant production capacity that can rapidly capture regional market share.