The UK stone market report January 2014 – part 4

Report July 2013

It is difficult to put figures on the amount or value of dimensional stone extracted in the UK because most companies winning and processing stone are so small their returns to Companies House are totally exempt. The few that are big enough to submit accounts show how small the industry is – Albion Stone, which quarries and mines Portland limestone, the major building stone of London, had sales of just £4.5million in 2012 and MD Michael Poultney said he had enjoyed a particularly good year. Realstone in Derbyshire has 10 quarries and also imports stone. Its turnover in 2011 was £5.1million.

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One of the few UK wholesalers that is a PLC is Pisani. Wholesalers sell almost exclusively imported stone, which accounts for the larger part of the UK market. Pisani’s latest accounts (for 2011) show it had a turnover of £16.7million.

Because of the small size of the industry extracting natural dimensional stone in the UK, the figures for production are said to be too sensitive to release. In reality, they are poorly collected. The terminology used in the collection of the data and inaccurate reporting make it impossible to obtain an accurate figure for the amount of dimensional stone produced in the UK. The best that can be done is to look at the commercial and domestic projects using indigenous stone and calculate the amount they are using and the value of it, which is inevitably imprecise.

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However, the British producers do generally (and it is anecdotal from the producers themselves, although it is supported by their customers) seem to have suffered less than importers since the collapse of the market in 2009. Building stone in the UK and Ireland comes from about 300 active or occasionally active quarries. Some of them are extremely small scale operations, with extraction being carried out on one or two days a year to produce enough stone to meet demand for the rest of the year. Sometimes the quarry is little more than a hole in the corner of a field from which stone is lifted as needed. Many stones are used in quite small geographical areas, which helps give those areas their distinctive built characters.

Imports of stone (including arrivals, as they are called when they come from within the European Union) still constitute the largest part of the UK stone market by quite some degree, according to the best estimates of those involved in the industry. Most stone used in interiors and much of the stone used for granite plinths and stone cladding is imported. Also, much of the granite and sandstone used in hard landscaping is imported and nearly all stone memorials are now imported, mostly from India and China.

Stone used for the walls of houses is mostly indigenous and has been hit by the decline in house building, although, again, not by as much as might have been imagined as builders have tried to add value to what they have built.

Indigenous stone is also used fairly extensively in hard landscaping (although there is more imported granite and sandstone used). Again, the number of hard landscaping projects has fallen since the end of 2008. Local stone is also widely used for property renovation and repair, maintenance and extensions, and for conservation work on significant properties and monuments in the heritage sector.

Margins on stone have fallen during the downturn, which has been reflected in the reported profitability of extractors, processors and fixers. However, indigenous stone suppliers have not been squeezed as hard as importers as the market for indigenous stone seems to lack price elasticity. As one of the UK quarry companies told Natural Stone Specialist magazine, it dropped its prices in 2010, saw no increase in sales, so put them up again in 2012 and has seen no decrease in sales. Why is demand insensitive to price? One reason is that clients do not generally know the price of stone and when a customer wants indigenous stone the price is not the deciding factor in reaching that decision. Another reason is that the use of indigenous stone is often dictated by planners. To get permission to build houses in desirable areas such as the Cotswolds, builders are often left with no choice but to use local stones.

The only presumably reliable figures available about the size of the stone industry in the UK come from HM Revenue & Customs, and they often have peculiarities – although those peculiarities generally disappear over time as the figures are updated. The latest figures, for example, (from which the graphs above were compiled) show a 67% jump in the volume of imports in 2012 while the value went up about 3%. There could have been a big shift to lower value stone, possibly, for example, as the result of the use of a lot of imported stone hard landscaping for the Olympics and perhaps as a result of the Far Eastern companies that have established depots in the UK trading as Stone Yard, KSG (UK), Nile and others. Currency fluctuations also add their complications to comparisons of the value of imports measured in sterling. Nevertheless, experience suggests there could have been an inputting error in the figures that will be corrected in the months ahead. As HMRC tends to be more interested in money than quantities, the value of the imports is usually more reliable than the volume.

According to HMRC, there were £364million worth of dimensional stone imports last year (these figures are amended as the year progresses, but will probably not alter much now). That includes slate (much of which is for roofing) and hard landscaping products. It also includes memorials and excludes some of the stone that will have come into the UK recorded as a product rather than a material (furniture, for example).

If slate and hard landscaping products are removed from the figures (it is not possible to distinguish between stone used for memorials and architectural stone in the figures), the value of the imports left is £265million. Based on Natural Stone Specialist estimates of the value of the market for indigenous stone and the way both indigenous and imported stones are used, that is probably about 77% of the market for architectural and memorial stone (ie excluding slate and hard landscaping – and you can read more about hard landscaping here), leaving the indigenous suppliers with sales of about £80million last year and giving the architectural stone market a total value of around £345million in stone supply.

Once the stone has been sawn, shaped, finished and installed, it is worth considerably more. It is (again) difficult to make an easy calculation about the value added during processing because a piece of stone cropped for walling will have less added value than a polished slab turned into a kitchen worktop, which in turn will have less added value than a 5-tonne block of limestone worked into a Corinthian capital (at least, it appears to have, although when the finished price is divided by the number of hours involved in production, the worktop might look more expensive than the Corinthian capital).

Making an educated guess about the added value, the market at the client end is probably worth about £3,225million. There are around 4,000 companies involved in the various architectural stone markets and another 800 in memorial retailing, making the mean turnover in the sector £670,000 a year.

There were, until 2009, more companies in the kitchen worktop sector, which has suffered particularly badly from the downturn. According to some estimates, about 300 companies, a quarter of the sector, have closed down since the end of 2008 (although some of the directors and employees have subsequently reappeared with new companies, sometimes to the chagrin of their suppliers who have been left holding the debt).

The stone sector grew rapidly after the turn of the millennium on the back of the property bubble but some of the companies that came into the market latterly were too highly geared to be able to survive when demand fell. Others suffered a cash flow crisis when the banks withdrew their support in 2009. Others were able to ride the downturn for a while, but have not been able to survive on the reduced margins as the years have gone by. The slight upturn in stone sales in 2010 has proved to be a dead cat bounce and the market has been basically flat following the bursting of the bubble at the end of 2008. In the middle of 2013, processors going into receivership and leaving bad debts is still a problem for their suppliers.

So far, most of the wholesalers have survived – indeed, new companies have come into the market. Wholesalers of imported stone play a vital role in the distribution chain of the stone industry because there are so many different kinds of stone (and engineered stone alternatives that are also processed by the stone industry) from all over the world. The relatively small size of most processors seldom enables them to gain a price advantage from importing directly. And even if it did, most of them do not want to tie up cash in the amount of stock they need to hold in order to satisfy their customers.

In Ireland, infrastructure is the only light in the construction market as the Government tries to inject some life into economy.

Tough economic times have seen a decline across Ireland’s construction industry, but the infrastructure sector should record positive growth between 2013 and 2017, according to the Timetric report, Construction in Ireland – Key Trends and Opportunities to 2017.
 
Despite a significant decline in the Irish construction industry – a CAGR (compound annual growth rate – or, in this case, shrinkage rate) of -28.25% between 2008 and 2012 – infrastructure is projected to record a CAGR of 1% between 2013 and 2017. This growth can primarily be attributed to various transport plans and government initiatives that are seeking to stimulate the economy.
 
Depressed economic conditions as a result of austerity measures are making it difficult for Irish households to repay housing debt. Furthermore, prospective buyers – especially those taking their first steps on to the property ladder – are finding it difficult to secure mortgages without prohibitively large deposits. Consequently,and despite house building being the largest section of the construction market in Ireland (accounting for 34.7% of total construction output in 2012) it was also one of the worst performing between 2008 and 2012, recording a CAGR of -29.37%.

Customer spending in Ireland has been rendered cautious by high unemployment, low wage growth, and a depressed economic outlook. Combined with businesses’ fear of making large investments as a result of government spending cuts and tax hikes, this has had a significantly detrimental effect on Ireland’s commercial construction market, which has recorded the most significant decline of all sectors – a CAGR of -32.93% between 2008 and 2012.

In the industrial sector, uncertainty in the global economy has had a negative effect on Irish exports, affecting the manufacturing industry in particular. This, coupled with the more general economic malaise, saw the Irish industrial construction sector record a CAGR of -31.36% between 2008 and 2012 – the second largest decline of all Irish construction markets.

Although all sectors of Irish construction registered negative growth between 2008 and 2012, a low benchmark interest rate, various transport plans and government initiatives to stimulate the economy are expected to encourage growth in the infrastructure sector between 2013 and 2017.

For further information: Timetric’s report, ‘Construction in Ireland – Key Trends and Opportunities to 2017’ is available at: http://timetric.com/research/report/CN0132MR

Source: Natural Stone Specialist, the monthly magazine for the natural stone industry in the UK and Ireland since 1882

Source: Stone specialist

The UK stone market report January 2014 – part 3

part3

stéphane Couteaud, the area sales manager for French stone machinery manufacturer Thibaut, summed it up when he said: “What’s going on in the UK and Ireland is very positive. It’s the spark that I hope will ignite all Europe.” And what is going on in the UK (although not Ireland yet) is faster growth than anywhere else in Europe.

Sales of Thibaut (and all other) stone processing machinery in the UK have taken off again as the economy improves and stonemasonry companies need efficiency improvements to keep up with demand.

The UK economy is growing strongly across the board month on month, quarter on quarter, with construction leading the way as one of the largest industries in the UK employing more than 2million people in 250,000 businesses.

And all the predictions are for continued growth. Using a mixture of forecasts from Glenigan and the Construction Products Association as an indication of the growth of the stone industry in the years ahead shows a growth of nearly 20% between 2011 and 2017 (see graph). That will see sales of stone back above their 2008 peak.

And that might underestimate the growthe in the natural stone sector, which has been taking sales from other sectors since the mid-1990s.

Back in the early 1990s limestone and travertine floors were a rareity, especially in domestic property; granite and engineered quartz worktops only appeared at the highest end of the market; hard landscaping was predominantly concrete with some clay. Even though the best commercial buildings were clad in natural stone, many more of them are clad in stone now, with marble, granite and limestone in the public and private interior and toilet areas.

The Millennium gave clients and specifiers a longer-term perspective on their work and now customers have seen the quality and beauty of stone they do not want to go back to using other materials. There is no indication that the appreciation of stone is dwindling.

One of the drivers of the increased use of stone were falling prices as the Far East, in particular India and China, took a rapidly increasing share of the market. There are still those who want the distinctive quality of indigenous and European stones, but there are plenty more who like the economy of imports from further afield. The prices of those imports are now starting to rise – as a result of increasing wages and improved health & safety and environmental controls in the Far East and currency exchange rates as the Far East becomes richer.

Nevetheless, there is a still a huge difference between the price of stone from the Far East and the price of stone from Europe, including the British Isles.

Unable to compete with the low prices from the Far East, Italy, in particular, has striven to add value to its stone, with elaborate cutting and finishing – and with some success. Although the average price of stone from Italy last year was £952 a tonne, compared with £148 a tonne from the Far East, there are still those who want Italian style and quality of production and are prepared to pay for it.

And that is not only true in the UK. According to Internazionale Marmi e Macchina (IMM) Carrara, in January to September last year, Italian companies exported 3,214,718 tonnes of stone at a value of €1.4billion to the rest of the world. That is 3.2% more by volume and 7.2% more in value than in the same period in 2012.

The most significant area of growth was finished marble, with exports of 675,000 tonnes (+4.6%) worth €648.3million (+10.1%).

IMM Chairman Fabio Felici comments: “It is a trend that reinforces the first few months of the year and, more importantly, it is in contrast with the general trend of the economy – testifying to the international appreciation of Italian stone and the importance of the industry that creates employment and added value.”

In the UK, there are those who want to use British stones in particular because these stones are eminently appropriate in historic and sensitive settings… and some people also want to support local industry and people, especially in a recession.

In fact, British quarries in general have not suffered from the economic downturn as much as importers, not least because what has been built has tended to be at the higher end of the market by clients who are more sensitive about the materials they use… or who want to build in areas where planners are more sensitive about it.

With the UK economy growing and stone still a much sought after material in many sectors of construction, there is every indication that, as M Couteaud hoped, the UK will indeed be the spark to ignite the recovery of Europe.

The wider background to UK growth

Just look at the Glenigan* summary for 2013:

  • Glenigan Index for December 2013 up 15% year on year
  • Second consecutive quarter of growth in non-residential construction starts for the first time since 2010

  • Retail starts double the level during the final quarter of 2012
  • Civil engineering starts 41% higher than 2012
  • Education project starts up by 35%.

Figures from the UK Government published in January 2014 and relating to the period to November 2013 confirm this growth trend:

  • Construction output up 2.2% when comparing November 2013 with November 2012, the sixth consecutive month of year on year increase
  • 2% increase in new work and 0.6% increase in repair and maintenance
  • Three months to November up 5.1% on the previous year
  • New work up 5.3%
  • Repair & maintenance up 4.7%

The growth in housebuilding has been particularly pronounced. In the 12 months to October 2013, UK house prices increased 5.5% and in the first 11 months of 2013 (the latest figures available when this was written) public housing construction increased by 10.1% while private house construction grew 13.8 %. This is where stone floors and fireplaces, granite kitchen worktops, splashbacks and tiles, and marble and limestone bathrooms go.

The commercial private sector saw 11.5% growth in the three months to November compared with a year earlier. This produces stone’s major contracts – cladding, large areas of flooring and wall linings, reception areas, bathrooms.

In the 11 months to November last year, the stone industry had already imported more stone than it did in the whole of 2012 and was set for around 8% growth during the year.

It is no wonder the stone industry in the UK has had to invest in new machinery to meet the demand.

But it is not just new machinery that meets the growing demand. All that extra product has to be fixed onsite and growth in the construction industry rapidly translates to employment. Government figures in January showed not only that unemployment was falling but that the number of people employed in the UK has grown significantly.

The UK now has a more than 30million people working – up 485,000 from a year earlier – with unemployment down to 7.1%. The average number of hours worked has also returned to its pre-downturn peak.

Behind the figures lies a major improvement in confidence among Britain’s business community. The Confederation of British Industry (CBI), the UK’s leading business group, is forecasting GDP growth of 2.4% in 2014 rising to 2.6% in 2015, with domestic demand supported by increases in business and housing investment and household disposable income.

John Cridland, CBI Director-General, said: “The UK is now set fair for growth, with confidence returning to Britain’s entrepreneurs. The recovery that started in the service sector has fanned out to manufacturing and construction and is shaping up to be more broad-based.”

The CBI represents the largest of British industry, but small and medium sized enterprises (SMEs, in the jargon) are also felling confident. Vistage is a support organisation the owners and top executives of businesses. Its latest survey has revealed high levels of confidence as we enter 2014.

The Vistage Confidence Index show that 73% of small and medium sized businesses in the UK and Ireland expect the economy to improve this year and 80% are preparing for a significant surge in sales.

They felt 2013 was a much better year for the UK economy, with 76% reporting improved economic conditions compared with a year earlier. At the start of 2013 confidence was a lot lower with only 20% believing business was improving. This positive change in expectations will no doubt continue to contribute to sustainable improvements in the current economic climate, says Steve Gilroy, CEO of Vistage.

Steve Gilroy: “Germany’s medium-sized businesses are rightly feted as the reason for its economic success. By contrast, Britain’s mittelstand companies are the UK economy’s unsung heroes, despite their huge importance to a sustained recovery and sustained job-creation.”

With such a positive outlook for the coming months and years, business leaders are able to focus on making real investments in their businesses.

Steve: “Many [companies] have emerged from the economic malaise of recent years in good health and cash-rich. Our research shows they are expecting a good 2014 and most have active plans to expand their workforces to take advantage of this – in fact many are doing this already.”

*Glenigan is the provider of UK construction project sales leads, market analysis, forecasting, and company intelligence. Its clients include companies of all sizes at every stage of the construction cycle and it has strategic partnerships with The Builders’ Conference, BRE, UKCG, Constructing Excellence, CECA, HBF and GroundSure. Glenigan produces the construction industry Key Performance Indicators survey for ONS and BIS.

Source: Stone specialist

The market for stone in the UK first half 2014 – part 2

 

report September 2014…

Imports of stone in the second quarter of 2014 continued to increase. They were up 10% on the first quarter of the year and 7% on the same quarter last year, according to figures from HM Revenue & Customs. For the first half of the year as a whole, imports were up 6% on the first half of 2013.

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The figures exclude slate, imports of which fell slightly – down 6% on the first quarter and 3% on the second quarter of 2013.

 

The figures are compiled from VAT returns, so continue to be amended for many months, although early trends are usually reinforced over time.

They also underestimate the market to some extent as some stone products are classified under other product codes. Nevertheless, they are compiled in the same way each period and identify trends. The current trend is clearly upwards, as the graphs here show.

There are no figures produced for British stone production, which probably now accounts for no more than a quarter of the market. However, according to the major operators of British quarries and mines, the trend is also upwards for indigenous stone sales.

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Walling stone sales, which are predominantly British stone, had been badly hit by the drop in housebuilding, but some of the quarries that produce walling stone have reported that, while volumes are down, value has been supported by more masonry and architectural stone being used for larger houses and mansions. Because stone production in the UK is relatively small scale, it does not take many mansions to keep quarries and masons’ workshops busy.

The graph here showing annual stone imports since the height of the market in April 2008 identifies a classic ‘dead cat’ bounce in 2010. The fall in imports in 2009 was worsened by the withdrawal of funding arrangements to many companies by banks, which considerably worsened the impact of the banking crisis on the rest of the economy. 

It is estimated that about 300 stone companies in the UK were forced out of business – around 7.5% of the industry – many of them in the kitchen worktop market, a sector that was hit by the general fall in incomes and consumer confidence and the crash of housebuilding. 

For some, it was only a temporary absence from the market. Others have not returned. Those who remained had to reduce the level of stock held to bring it more in line with the lower level of demand. The effect was to reduce the import of stone below the general level of demand and produce the dead cat bounce in 2010 and the return to recession in 2011 as the market sought equilibrium.

Since then, many parts of the stone market have continued to reflect the improvement in the UK economy in general (the International Monetary Fund says the UK will easily have the highest level of growth in the developed world this year) as the increasing amount of stone being imported indicates.

Most of the stone arriving in the UK still comes from India, China and Italy, if you exclude slate. Slate accounts for much more than half the stone imports from Europe and most of it comes from Spain.

Most stone comes from India. The average price of the 281,500 tonnes of stone that was imported from India in the second quarter this year was £235. The average price of the 110,000tonnes of stone from China in the second quarter of this year was £311. And the average price of just under 16,000 tonnes from Italy was £897.

The figures are not exactly comparable because the products are not exactly the same. For example, quite a lot of sandstone for paving comes from India and sandstone paving is not as expensive as polished granite. Also, a fair amount of the granite from China is setts and kerbs, which are less expensive than polished slabs, while Italy sends a lot of added-value finished stone to the UK. Nevertheless, the trends are clear.

 

Source: Stone specialist

 

 

 

The growth of the stone market in the UK- part 1

 

The growth of the stone market in the UK

October 2015

The use of stone in the UK diminished with modern architecture in the first three quarters of the 20th century but has since enjoyed a major revival and demand for it continues to grow strongly as the UK recovers from the economic crash that started with the credit crunch of 2007-8.

Fashions change – most granite worktops installed are dark colours but gradually lighter and more lively colours are growing in popularity. Many would like marble in their kitchens but are put off because marble is easily stained and etched. The makers of engineered quartz are capitalising on this by making products that look more like light-coloured marble but with the strength of granite. Many stone companies supplying worktops these days find half or more of their sales come from quartz.

As the UK construction industry continues to grow out of the recession demand for stone continues to strengthen. The use of stone is now well re-established in all areas of construction – commercial and domestic, for cladding and walling, flooring, worktops, wall coverings, features such as fireplaces and attention grabbing stairs (especially cantilevered stairs and landings).

Hard landscaping has also turned to stone in a major way, both for public and private projects. In 1980 stone paving and walling was a rareity. Now it is only a question of which stone to use. The big change was a huge increase in sandstone from India (in particular) and granite from China (in particular). The low price of these products, coinciding with a growing awareness of the importance of the spaces between buildings and an explosion of major urban regeneration programmes, brought about a sea change in the aesthetic for urban spaces. A driver has been the appreciation local administrations that simply improving the urban landscape can act as an impetus to a lot of private sector in the buildings in an area. This has been the rationale for a lot of urban landscape projects.

Britain and Ireland have a long history of building with stone, with monuments still standing that date back to pre-history – the most famous of which is probably Stone Henge on Salisbury Plain in the south of England, although others, notably Skara Brae in Scotland and New Grange, in Ireland are more impressive to visit.

The Roman conquest and 400-year occupation of Britain left us with stone fortifications and mansions. The Norman invasion of 1066 brought a burst of castle and church building, although it had begun before William the Conqueror turned up at Hastings as religious orders established their cathedrals and monastries across the land.

Stone has always been chosen for structures that are intended to show solidity and permanence, marking out the finest in architecture through the centuries.

With the rise of modernism at the start of the 19th century, architects turned to the then newly developed hard concretes, but as the second millennium drew to a close, architecture in Britain rediscovered its love of stone. Once again, the very symbol of permanence and longevity was chosen to mark out significant buildings and landscapes intended to give the impression of being intended to last for the next 1,000 years. The UK Government made £5billion available to help pay for millenium projects, giving the economy a boost into the third millennium.

Stone continues to be popular. Inevitably sales fell as a result of the world credit crunch and economic crisis of 2007-8.

Between 2008 and 2009, GDP per head in the UK dropped by 5.5%, the largest annual decrease since 1949, another period of austerity. The number of houses being built more than halved and banks withdrew their support for many businesses. The value of stone imports fell 16% in 2009 from what, taken over the long term, now looks like the bubble of 2007-8.

Before the crash there had been a big increase in the number of companies moving into the production and installation of granite kitchen worktops. By 2009, when the economic downturn really hit, there were about 1,200 companies templating, making and installing worktops and the crash saw about a quarter of them go out of business as demand rapidly fell.

Prompted by lifestyle magazine articles and television programmes, granite and, later, engineered quartz worktops had become de rigueur. New builds and home improvements alike just had to have granite worktops. Limestone floors also became popular, as well as stone and marble features such as fireplaces. More recently, stone and marble walls, floors and vanity units have become popular for bathrooms and wet rooms, and stone is more frequently seen in bedrooms and living areas.

In commercial buildings, the City of London leads the way in the use of stone for cladding and masonry on its offices, and stone and marble in its interiors, especially in public areas of foyers and toilets. But all major cities aspire to have stone marking their centres of administration, commerce and entertainment.

Many contractors still turn to Italy as a centre of stone selection and source for major projects in the UK, although Spain, Germany and France also supply cladding and masonry for new build and conservation projects in the UK and, of course, the British Isles produce their own stones, although they only account for about 25% of the market these days.

While larger stone contractors such as Szerelmey, PAYE, Stonewest, Livra, APS, Vetter, Mather & Ellis, Ketton, William Anelay and many more, as well as major interiors stone do buy their stone directly from suppliers all over the world, the recession made companies think again about holding expensive stock and more returned to the traditional supply chain of established international and national wholesalers such as Pisani, Levantina, The Marble & Granite Centre, Gerald Culliford, Beltrami, B-Stone, MGLW, Cosentino, International Stones and many others, as well as specialists in hard landscaping, roofing and memorials. They are all listed with full contact details in the Natural Stone Directory, which can be bought online from www.naturalstonespecialist.com/directory.

After the crash of 2009 there was a dead cat bounce in 2010, and adjustment back down in 2011 and each of the three completed years since then have seen stone imports growing again, with volume outpacing value, reflecting the strength of sterling and, perhaps, a hardening of attitudes by buyers.

According to the figures from HM Revenue & Customs, the value of imports in 2014 grew a little more than 2% to just over £400million for nearly 3million tonnes of stone. Figures for UK stone production (mostly limestone and sandstone and a little granite) are sketchy. However, according to the British Geological Survey, UK production was a little under 1million tonnes, which the Minerals Products Association’s Dimension Stone Group values at about £350million.

An upward trend in the market is clear, reflecting both the growth in British construction (up 7.4% in 2014) and the economy in general (up 2.8%).

Direct imports from India and China continue to grow and for the first time last year the two countries supplied more than half the UK’s stone imports. India still supplies most (nearly £127million worth last year) but China’s contribution was up 5% at just over £74million.

From Europe, Spain has maintained its position as the UK’s major supplier, not least because it ships a lot of roofing slate to Britain as well as granite for hard landscaping. In 2014 it was the source of 138,000tonnes of natural stone products valued at £58million.

Italy’s importance as a supplier to the UK has been diminishing, slowly but inexorably, for many years. At the height of the market in 2008 it shipped 51,000tonnes of stone to the UK valued in sterling at £52million. Last year that was 31,000tonnes worth £30million, according to MH Revenue & Customs.

Italy is still respected for its high quality finished stone and many developers continue to turn to Italy to source large quantities of natural materials for top-of-the-market projects, but clearly alternative sources are also being used.

  • The usual caveats apply to these figures: they are based on VAT returns and some products can slip through under different product categories, so do not show up as stone imports. No doubt some stone that would not normally be considered part of the stonemason’s repertoire is also included. Nevetheless, the figures are comparable over time and provide the best source of information available to the industry about trends in the use of natural stone.
  • No independent value is reported for the indigenous stone industry in the UK, which has about 170 quarry and mine operators supplying dimensional stone extracted from about 250 quarries and mines in the British Isles. The stone is used almost exclusively for the home market, although a little goes overseas.

 

UK stone market continues to grow

June 2015

For the third successive year, the UK’s imports of stone for construction and memorials grew again in 2014. Volume growth once again outpaced the growth in the value of them, reflecting the strength of sterling and, perhaps, a hardening of attitudes by buyers.

According to the figures from HM Revenue & Customs, the value of imports last year grew a little more than 2% to just over £400million while the volume was up 37% at nearly 3million tonnes. According to the British Geological Survey, UK production was a little under 1million tonnes, which the Minerals Products Association’s Dimension Stone Group values at about £350million.

Because the stone sector is fairly small, fluctuations in prices and volumes are quite large because they can be influenced by a small number of projects. Nevertheless, an upward trend in the market is clear, reflecting both the growth in British construction (up 7.4% in 2014) and the economy in general (up 2.8%).

Direct imports from India and China continue to grow and for the first time last year the two countries supplied more than half the UK’s stone imports. India still supplies most (nearly £127million worth last year) but China’s contribution was up 5% at just over £74million.

Imports from South Korea are increasing – it supplied 2,000tonnes in 2014 worth £2million, making its price per tonne about the same as stone from Italy. More is coming directly from Latin America (2014 = 36,000tonnes valued at £12million). There is an increasing amount from the Middle East and North Africa (2014 = 17,500 tonnes valued at £10million).

From Europe, Spain has maintained its position as the UK’s major supplier, not least because it ships a lot of roofing slate to Britain as well as granite for hard landscaping. In 2014 it was the source of 138,000tonnes of natural stone products valued at £58million.

Italy is Europe’s largest stone trading nation but its importance as a supplier to the UK has been diminishing, slowly but inexorably, for many years. At the height of the market in 2008 it shipped 51,000tonnes of stone to the UK valued in sterling at £52million. Last year that was 31,000tonnes worth £30million.

Italy is still respected for its high quality finished stone and many developers continue to turn to Italy to source large quantities of natural materials for top-of-the-market projects, but clearly alternative sources are also being used.

·         The usual caveats apply to these figures: they are based on VAT returns and some products can slip through under different product categories, so do not show up as stone imports. No doubt some stone that would not normally be considered part of the stonemason’s repertoire is also included. Nevetheless, the figures are comparable over time and provide the best source of information available to the industry about trends in the use of natural stone. Also the figures continue to be amended for many months after they first appear.
·         No independent value is reported for the indigenous stone industry in the UK, which has about 170 quarry and mine operators supplying dimensional stone extracted from about 250 quarries and mines in the British Isles. The stone is used almost exclusively for the home market, although a little goes overseas. More Irish stone is exported, especially the Irish Blue limestone that goes to the Netherlands and Belgium, where it is used as a match for the Belgian Blue (Petit Granite).

 

Source: Stone specialist

Stone association of Iran will hold The first professional pavilion of Iran stone industry In 17th International Exhibition Stone Industry in Russia

According to the determination of the Russian Federation as one of the target market For development of Iran’s export , material and moral support of ministry of industry , mine and trade , trade promotion organization of iran , iran small industries and industrial parks organization , Stone association of iran in partnership with Youstone will hold .

1.5

Sharify , Stone Association of Iran’s secretary : Emphasizing the strong attendance of Iranian companies in Russia’s Specialized Exhibition of stone

Secretary of the Iran’s stone association emphasized : Unfortunately, in none of the specialized exhibitions we couldn’t attend as worthy of this industry and the main reason was Lack of government support Because the government didn’t consider stone industry in their macroeconomic policies.

He added : Iran’s rival countries in stone portion including Turkey and Italy because of  moral and material government’s support , they took part in international exhibition as pavilion every year . While Iranian companies without any planning took part in specialized exhibitions.

Sharify by referring to agreement between stone association of Iran and Italy said : according to this agreement a stone intercommunion institution will establish and stone association of Italy as our administrator attract Italian companies for holding specialized stone exhibitions.

Secretary of the Iran’s stone association by emphasizing on Iran’s strong companies attendance in specialized exhibition stone industry in Russia said : this exhibition is going to hold on June 2016, in Moscow and 1000 meters pavilion belongs to Iran stone industry .  

Source : Mine 24

Date : 7/March/2016

Mohammad Rassa , YouStone administrative manager in the SAMT interview : Iran’s stone is seeking to a firm foothold in the Russian-speaking countries.

Turkey is the one of countries which could develop it’s stone industry and move toward the improvement . Manufactured stones in this country are exported to various European countries and American thus there are lots of incomes for this country .

However , it seems the power of this country will dwindled in future and Iran could takes its place . Is this probable?

Mohammad Rassa in the SAMT interview :

Penetration to Soviet countries stone market , Russia and other middle east countries which they were under control the Soviet Union, they could be perfect markets for Iran stone industry .

The most important advantage for Iran is being near to these countries , The importance of proximity to producing countries is for that price of transportation is crucial and become a competitive advantage . This matter is more crucial about the stones which have a low price.

Although , Russia , Kazakhstan, Belarus, Turkmenistan, Kyrgyzstan, Azerbaijan etc , Due to not far from Iran, can be potential buyers for country .

According to Rassa , Russia has more importance than other countries. This country among other countries in the region, has the largest market and on the other hand there is competition with other manufacturers of stone . Iran’s stone rivals in Russia are Turkey and China and some other couldn’t compete in this field. Iran has this advantage against China that is nearer to Russia thus Chinese products has high prices in Russia and will lose their competitive advantage.

According to this expert and stone market participants, entering to this market requires, commercial presence in Russian-speaking countries be improved.

Rassa explained :  Our plan is to support Iranian companies strongly in this exhibition so they will grow . In any case, the important thing is that the presence of Iran stones in Russian-speaking countries should be continuously and not enough just to attend a particular time. A strong attendance at the exhibition which will be held in late July is the first step to penetrate the target countries market .

Our plane is expanded to Turkmenistan , Azerbaijan, Ukraine, Kazakhstan in the next steps.

Iran has  lots of marbles in various colors and quality, Travertine is the same as marble.

In these two kinds of stone  , Iran is similar to turkey and can deal with this country’s power. In stones like marble and granite, Iran is better than Turkey and could attain better rank.

Attending in this year exhibition is the first and small step toward our goal and by conversance about stone market participants , experts and architects this goal will be achievable . In the next steps there will be invitation for Iran in other target countries and for experts and companies to have direct communication in big projects in order to receive a strength footmark in global stone market.

Joint economic conference between Iran and Ukraine in Alborz province’s chamber of commerce (December 14th 2015)

 

Ukrainian trade delegations have had many visits to Iran and this is their third visit in the past 6 months. This shows Ukraine’s determination and passion to expand trade ties with Iran.  This delegation consisted of the first deputy of Ukraine’s chamber of commerce and the managers and representatives of the chambers of commerce of the different provinces in Ukraine.

According to the first memorandum, the agreements that were achieved and the potential in both countries, there is hope that the two countries can cooperate in the industry, steel, tourism and agriculture fields. In this conference the Ukrainian delegation said they are ready to transfer land to Iranian investors in order for them to work on agriculture. Bearing in mind the potential of the Alborz province, investment in the fields of tourism, Hotels and sport complexes have to be included in this cooperation. Also, Payam airport can be used as a direct air route for trade between Iran and Ukraine. Ukraine has also offered the role of becoming a link between Iran and Europe.

The economic delegation of Ukraine is also after a strong economic relationship. With Ukraine being neighbors to countries such as Hungary, Poland, Slovakia and … , as of the 1st of January 2016, free trading between Ukraine and Europe will be started and this will be a good potential for Iranian exporters to export their goods to Europe through Ukraine.

According to the talks that have been made, an economic delegation from Iran will be visiting Kiev in the first quarter of 2016.

A glimpse at the eighth “Iranstoneexpo” October 2015

This year’s exhibition had more consistency and stability from last years. Displacement of exhibition to the new area in “Nimvar” city with an area of approximately 55 thousand square meters was the advantage of exhibition in this year. Project of exhibition area that has been designed with international standards, were faced with the satisfaction of participants and visitors.

The opening ceremony was held by the presence of Deputy Minister and a number of provincial administrators, with Appreciate and thank those who were responsible for the preparation and conduct of this great exhibition within 86 days.

Coordination and planning for visiting foreign delegations began at the second day of the exhibition schedule.

Holding such exhibitions for knowing Iran`s stone and Iranian producers can be very useful and effective. Foreign delegations that visited the “Iranstoneexpo” were:

Monday 12/10/2015: Mr.Ambassador of Vietnam

Tuesday 13/10/2015: Export Manager of Italy… Mr. Sappa  Gianmatteo, Ambassador of Tajikistan with delegation of Tajikistan

Italy and China participated in the field of machinery, Turkey and Spain in the field of machinery and stone.

And countries such as Afghanistan, that for the first time, their stone blocks were exhibited in “Iranstoneexpo”.

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Statistics show us presence at “Iranstoneexpo” compared to last year grew up by 300 percent and about 6,000 visitors, visited the exhibition.

However “Youstone” foreign guests in two different groups visited the exhibition during two days. 

The first group were Korean,”SUNG IL KIM” and “JAE-KON Ko” .they visited the exhibition on the third day of the exhibition and the second group were French ,”Rainbow Andrew”  and “Jean Marc Lamy” participated at the exhibition on the last day.Most of the visitors were satisfied from visiting the exhibition. During the interview with Mr. Rainbow Andrew and Mr. Jean Marc Lamy, They evaluate the exhibition is very positive and because of participating in many international exhibitions, they said that this exhibition in terms of variety and quality of stones and exhibition halls is valuable and great.

And noted that the exhibition space and its Performance by managers   Mr.“Nikfar” , Mr.Pourhassani, Mr. Hallajian and colleagues show that a very strong “volition” and “reliable quality” exists in the structure of the exhibition.

Which has caused them to be prepared to participate in the “Iranstoneexpo” 2016 from now.

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Export Manager of Italy, Mr. Sappa  Gianmatteo

In this exhibition, seminars and training classes were held as follow:

The role and usage of stone in new architecture

Modern methods of mining

Deliberation of difficulties in mining, offering solutions, with focus on the production and export of decorative stone

Energy efficiency in production of decorative stone, and etc.

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French Group from Bouyugue Construction

Date: 15 Oct 2015

Youstone invites Korean trading group to Mahalat stone fair

After identifying and inviting French traders, Youstone asked its representative office in South Korea to bring and accompany several stone experts to Tehran and Mahalat fair so that they can evaluate the quality, the variety and the price of Iranian stone and then initiate the primary stages of importing processed stone from Iran. Youstone’s goal is to introduce Iranian stone to the world, specifically to countries with a high record of stone import.

As it was pointed out in previous news, after China, India, the United States and Italy, Korea has the highest rate of stone demand and import. It is obvious that the presence of stone experts from Korea is both important and crucial in the current market conditions.

According to the negotiations with Korean traders, 3 experts were introduced to visit Mahalat stone fair and consider buying stone from Iran, two of which are active in stone marketing in the representative office of Youstone and the other one is invited from a Korean company which is active in buying stone for major projects like hospitals, hotels, etc.

The Korean company of Hancock started its activity in Seoul in 1989 and has imported stone from Italy, Greece, Germany, Portugal, Turkey and Mexico.

Therefore, it’s a good opportunity for Iran’s stone activists to introduce their products and expose the quality and variety of Iranian stone to other countries for the purpose of export and extension of the international market.

Currently, all of Youstone’s effort is focused on reaching an agreement with Korean and French traders and facilitating their participation in the fair.

Youstone’s booth located in NO.50, Hall B welcomes you to the 8th Mahalat-Nimvar stone fair.

Date: 10 Oct 2015