China's Sand and Gravel Output Falls to 13.9 Billion Tons as Prices Drop for Fifth Year

Industry Report: Production and Prices Decline for Five Consecutive Years

China‘s sand and gravel industry has entered a period of profound structural adjustment. According to the 2025 China Sand and Gravel Industry Economic Operation Report released by the China Sand and Gravel Association, national sand and gravel production reached 13.9 billion tonnes in 2025, a year-on-year decline of 8.9%. The national comprehensive price index fell to 76, down 9.2% compared to the previous year—marking the fifth consecutive year of decline in both production and prices. The report describes the industry as entering a “deep adjustment period” characterised by simultaneous volume and price declines, with low-price disorderly competition severely damaging overall industry interests and the industrial ecosystem. For quarry operators, mining companies, and crushing equipment suppliers, this data confirms what has been evident on the ground for several years: the era of volume-driven expansion is over, and survival now depends on operational efficiency, cost control, and equipment reliability.

Price Collapse: Index Falls to 76 as Margins Approach Breaking Point

The price decline has been relentless and widespread. By December 2025, the comprehensive sand and gravel price index had fallen to 74, down 9.4% year-on-year. Manufactured sand prices dropped to an index of 73 (down 8.9%), while construction crushed stone fell to 74 (down 9.5%). These figures represent a cumulative decline of approximately 30% from the market peak, with some regions experiencing price drops exceeding 50% from their highs. The report notes that prices have fallen close to the break-even point for many enterprises, with particularly severe pressure on operations that acquired mining rights at elevated prices during the market boom. The phenomenon of “production equals loss” has become widespread, as companies that invested heavily in new mining rights now find themselves unable to recover their capital in a market where prices continue to slide. For operators evaluating crushing equipment investments, this price environment demands a relentless focus on reducing cost per tonne—and that begins with selecting equipment that delivers the lowest total cost of ownership over its service life.

Capacity Utilisation at 34%: A Market Defined by Severe Oversupply

The root cause of the price collapse is a fundamental imbalance between supply and demand. The report reveals that capacity utilisation across the industry averaged just 34% in 2025, while the average operating rate stood at 60%. This means that nearly two-thirds of China‘s sand and gravel production capacity sits idle at any given time—a stark indicator of the oversupply crisis. The problem has been building for years: during the “14th Five-Year Plan” period, a large number of new mining rights were released, particularly along the Yangtze River, the Xijiang River, and around provincial capitals. These large-scale projects have now come online simultaneously, flooding the market just as demand from real estate and infrastructure has weakened. The report notes that demand contraction is structural, driven by the continued downturn in real estate investment and the first negative growth in infrastructure investment in the current cycle. For equipment buyers, this oversupply means that competition is fierce, and only operations with the most efficient crushing and screening plants can remain profitable.

Regional Divergence: Coastal and Riverside Markets Hit Hardest

The price decline has not been uniform across China. Riverside cities saw their price index fall to 84, down 12.4% year-on-year, while coastal cities experienced an 8.7% decline to the same level. These regions—which host the majority of China‘s large-scale sand and gravel projects with annual capacities exceeding 10 million tonnes—are particularly vulnerable because their target markets overlap significantly. The Yangtze River Delta region, for example, draws supply from Hubei, Anhui, Jiangxi, Chongqing, and coastal provinces including Zhejiang, Fujian, Hebei, and Liaoning. This geographic concentration of supply into overlapping markets has intensified competition and accelerated the price decline. Among 18 key cities monitored, only Zhengzhou recorded a price increase (up 2.3%), while cities including Xi‘an, Nanchang, Wuhan, and Changsha saw declines of 15% to 26%. For operators in these competitive regions, investing in energy-efficient crushers and intelligent monitoring systems is no longer optional—it is the primary path to survival.

Policy Response: Controlling New Capacity and Accelerating Consolidation

The industry association has outlined a clear policy direction for 2026 and beyond. The report states that the oversupply situation cannot be fundamentally reversed in the short term, and that controlling the total volume of mining rights and strictly limiting new capacity are the core priorities for improving the supply side. The industry must accelerate its transition toward high-quality, green, and intelligent production. This policy direction has direct implications for equipment selection. As the industry consolidates and weaker operators exit, the surviving enterprises will be those with the most efficient, compliant, and reliable production lines. Energy efficiency is becoming a regulatory requirement, with mandatory energy consumption caps and emissions standards being enforced. Intelligent monitoring and automated control are no longer optional upgrades—they are baseline expectations for any new or upgraded crushing plant. The report calls for the industry to “actively build a stable and healthy industrial ecosystem,” a goal that can only be achieved through the widespread adoption of modern, efficient crushing and screening equipment.

Equipment Implications: Efficiency and Intelligence Are the Only Way Forward

In a market where prices are falling and capacity utilisation is below 35%, 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 report‘s emphasis on “high-quality, green, and intelligent transformation” is not merely a policy slogan—it is a roadmap for survival. Operators who upgrade their equipment, improve energy efficiency, and reduce waste will not only survive but gain market share as weaker competitors exit. Those who delay will find themselves unable to compete in a market where every yuan of cost matters. All price information provided is for reference only; final quotes depend on equipment configuration, shipping terms, optional features, and current exchange rates.

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. As a direct factory manufacturer, we eliminate distributor margins, passing the savings directly to you. This means you get high-quality equipment at a more accessible price point—critical when every yuan of capital expenditure must be justified against tightening operational budgets. 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. Product specifications are continuously updated; please consult our online customer service for the latest technical parameters tailored to your application.

Energy Efficiency and Low Maintenance: Key to Surviving the Downturn

In a market where demand is falling and margins are under pressure, every reduction in operating expense directly improves profitability. Our VSI crushers and impact crushers are engineered with energy efficiency as a primary design consideration, featuring variable-frequency drive options that optimise power consumption across varying feed rates. Our jaw crushers and cone crushers are built with robust frames and wear-resistant components that extend service intervals and reduce maintenance downtime—a critical advantage when production schedules are tight and every hour of lost output represents lost revenue. We also supply complete screening plants with adjustable decks and high-frequency screens that maximise separation efficiency, reducing recirculating loads and improving overall plant throughput. With a focus on durability and serviceability, our equipment is designed to keep your plant running reliably, day after day, in the most demanding conditions.

Global Experience, Local Support for Your Operation

Having supplied equipment to customers in over 180 countries, OCP Mechanical Company brings a wealth of international experience to every project. We have worked with operators in diverse regulatory and market environments, and we understand the specific challenges of navigating a contracting market while maintaining compliance and profitability. Our after-sales support includes remote diagnostics, spare parts delivery, and wear-part prediction services to help you minimise downtime and extend equipment life. We also provide installation supervision, commissioning assistance, and operator training to ensure a smooth startup. With a 40-year track record of reliability and customer satisfaction, we are a partner you can trust to support your operation through market cycles—whether you are upgrading an existing plant or building a new facility designed for efficiency and compliance from day one.

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

The Chinese 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.