China Sand and Gravel Output Falls 9% in H1 2026 as Prices Hit USD 11 per Ton

Market Reality: A Fifth Consecutive Year of Volume and Price Decline

China‘s sand and gravel industry continues to face deepening structural challenges. According to the China Sand and Gravel Association’s 2026 H1 Economic Operation Report, national sand and gravel output reached approximately 6.32 billion tonnes in the first half of 2026, a year-on-year decline of 9%. The national average price fell to RMB 80.1 per tonne (approximately USD 11), down 5.26% from the prior year. This follows a full-year 2025 output of 13.9 billion tonnes, which was already down 8.9% from 2024, marking the fifth consecutive year of simultaneous volume and price decline. Average prices for manufactured sand dropped 5.76% to RMB 69.1 per tonne, while crushed stone fell 5.03% to RMB 69.2 per tonne. The industry has entered what analysts describe as a “deep adjustment period,” characterised by intensifying oversupply and severe price competition. OCP Mechanical Company, with over 40 years of manufacturing experience, supplies high-performance crushing and screening equipment engineered for the demands of modern, efficient aggregate production. Our direct factory model eliminates intermediaries, giving you factory-direct pricing and responsive technical support—essential when every yuan of operating cost matters.

Capacity Utilisation at 33.7%: The Oversupply Crisis Deepens

The most telling indicator of the industry‘s structural imbalance is the persistently low capacity utilisation rate. As of September 2026, the national operating rate for sand and gravel enterprises stood at just 51.23%, while capacity utilisation was only 33.7% —a year-on-year decline of nearly 10 percentage points in operating rate. This means that nearly two-thirds of China’s sand and gravel production capacity sits idle at any given time. The root cause lies in the massive release of new mining rights during the 14th Five-Year Plan period, particularly along the Yangtze River, Xijiang River, and around provincial capitals. These large-scale projects have come online simultaneously, flooding the market just as demand from real estate and infrastructure has weakened. The China Sand and Gravel Association projects that the supply-demand imbalance cannot be fundamentally reversed in the short term, and that controlling new capacity is the core priority for improving the supply side.

Regional Divergence: All Regions Decline, West Performs Best

The output decline is broad-based across all regions. In H1 2026, western China produced 2.30 billion tonnes, down 6.9% year-on-year—the smallest decline nationally. The central region produced 1.64 billion tonnes, down 11.1%, while the eastern region produced 2.14 billion tonnes, also down 11.4%. The northeast region produced 230 million tonnes, down 10.0%. The relatively better performance in the west reflects ongoing infrastructure investment in provinces such as Sichuan, Yunnan, and Xinjiang. In contrast, eastern and central regions—which host the majority of large-scale projects along the Yangtze River and coastal areas—face the most intense competition. According to data from 100njz.com, riverside city price indices fell 8.4% to 83.6, while coastal cities dropped 6.9% to 81.9. The geographic concentration of supply into overlapping markets has intensified competition and accelerated the price decline, with Guangdong’s mechanism sand and crushed stone prices falling by more than 10% due to low-price inputs from Guangxi and local capacity release.

Mining Rights Market Cools as Investors Grow Cautious

The mining rights market is reflecting the broader slowdown. In the first half of 2026, only 264 sand and gravel mining rights were transacted nationwide, compared to 363 in H1 2025 and 413 in H1 2024—a consistent decline. Total newly added reserves amounted to 4.83 billion tonnes, significantly lower than the same periods in 2024 and 2025. The average transaction price for mining rights shows stark regional divergence: Zhejiang led at RMB 19.1 per tonne, while Hebei and Anhui followed at RMB 7.9 and RMB 7.4 per tonne respectively. At the other end of the spectrum, Guizhou, Inner Mongolia, Liaoning, and Jilin recorded prices below RMB 1 per tonne. This divergence reflects both geological quality and proximity to demand centres. The consolidation trend toward larger, more efficient operations is evident: mining rights with reserves exceeding 80 million tonnes accounted for 3.8% of transactions in H1 2026, up 1.8 percentage points year-on-year, while smaller mines below 5 million tonnes declined slightly to 42.4%.

Equipment Implications: Efficiency and Intelligence Are the Only Path Forward

In a market where capacity utilisation is below 34% and prices have fallen for five consecutive years, the competitive advantage shifts decisively to operators who can produce at the lowest cost per tonne. This means selecting jaw crushers, cone crushers, and impact crushers that deliver high throughput with minimal energy consumption and downtime. It means investing in VSI crushers that produce well-shaped aggregates with minimal waste. And it means equipping crushing plants with intelligent control systems that optimise performance in real time, predict maintenance needs before failures occur, and reduce the need for manual intervention. The industry’s shift toward “high-quality, green, and intelligent transformation” is not merely a policy slogan—it is a roadmap for survival. The China Sand and Gravel Association emphasises that the industry must accelerate its transition toward green and intelligent production, with energy efficiency and emissions compliance becoming mandatory requirements. Operators who upgrade their equipment, improve energy efficiency, and reduce waste will not only survive but gain market share as weaker competitors exit.

OCP Mechanical Company: Factory-Direct Solutions for a Challenging Market

While China‘s sand and gravel industry undergoes its deepest adjustment in decades, OCP Mechanical Company remains a reliable partner for operators seeking to optimise their processing lines without overinvesting. With over 40 years of manufacturing experience and exports to more than 180 countries and regions worldwide, we understand the pressures facing quarry and mining operators in today’s environment. Our product range includes jaw crushers, cone crushers, VSI crushers, impact crushers, vibrating screens, feeders, and complete crushing and screening plants—all brand-new and built to rigorous quality standards. Our equipment is engineered for energy efficiency and ease of maintenance, with configurations that can be matched to your specific feed characteristics and production targets. As a direct factory manufacturer, we eliminate distributor margins, passing the savings directly to you—critical when every yuan of capital expenditure must be justified against tightening operational budgets. All price information provided is for reference only; final quotes depend on auxiliary equipment, shipping terms, and optional features. Our engineering team works closely with each customer to design custom stone crusher plants that deliver the lowest possible cost per tonne. Product specifications are continuously updated; please consult our online customer service for the latest technical parameters tailored to your application.

Your Next Step: Get a Custom Quote for Today‘s Market

China’s sand and gravel industry is entering a new phase—one defined by structural contraction, tighter margins, and higher compliance standards. The equipment choices you make today will determine your ability to compete in this environment. OCP Mechanical Company offers factory-direct, high-quality crushing and screening solutions that are engineered for energy efficiency, reliability, and low total cost of ownership—all at competitive prices. Our online customer service is available 24 hours a day, seven days a week, to provide free consultations, updated price references, and equipment selection guidance. Click the chat button now to discuss your project with a specialist—we are ready to help you build a more efficient and profitable processing line for the market conditions ahead.