Tales from the Stone Business Beat

Entries from August 2009

You Got That WHERE?

August 30, 2009 · Leave a Comment

Consider the origins of stone-care products at your local industry supplier – or the nearest Big Box home-furnishing stone – and you’ll get a quick tour of the worldwide stone industry. Mixed in with U.S. manufacturers are destinations as close as Canada and Mexico to more-exotic locations such as Turkey and China.

And, if there’s an incredibly enterprising importer out there, you can add one more country to the list: the Democratic People’s Republic of Korea (DPRK) … or, as you’re going to likely know it, North Korea.

The country’s official news agency reported in June that scientists developed a stone cleaner/enhancer made from “natural materials;” the solution won’t harm the stone, and residue is non-polluting.) The agency also noted that, for those looking to dress up some concrete, there’s a new paint that provides the look of natural stone in five colors.)

Negotiating a business deal isn’t going to be an easy job, considering that exports from the DPRK come by fits and starts; on occasion, it doesn’t export directly to U.S. customers for a year at a time. (Don’t expect the DPRK’s official Website to offer a lot of help for starting up trade, although there is an official chamber of commerce.

However, as of last October, the country is off the “state supporters of terrorism” list, by order of former President George W. Bush. It’s OK to do business in Pyongyang, although you might be wary if anyone starts talking about payments through Office 39.

It’s unlikely that “Made in the DPRK” would appear on any of this stuff, as it might make a stone rejuvenator a bit of a tough sell at Bed, Bath and Beyond. Finding a different way to market by packaging the stuff somewhere else – Hong Kong, maybe – might do the trick. After all, it’s worked for the literally countless tons of stone with some genuinely strange import tags.

In the first six months of this year, for example, there’s been a regular flow of worked granite from the Dominican Republic. Admittedly, there are granite deposits in the country – the last mention I could find came from 1907 – but it’s a tougher sell to see major granite quarrying in Panama, Singapore or the United Arab Emirates, which all sent granite to U.S. ports-of-entry this year.

This is due to the Harmonized Tariff Schedule that determines the export “origin” by how much a product is worked, and it’s easy to believe that stone factories are running in Singapore or Dubai. (It’s a stretch to see major boulder-to-slab operations in the Cayman Islands, which sends along a few tons of granite every now and then.)

Then there’s the interesting case of Lebanon and the stone export category of other calcareous, which basically includes any calcareous stone that isn’t classified as marble or travertine. For years, the country sent, on average, less than 100 metric tons a month of other calcareous to the United States – until December 2006.

In October of that year, Lebanon exported 21 metric tons of the ol’ o.c. here. Two months later, it exported 28,224 metric tons to the United States. Since then, Lebanon has been the biggest volume exporter of other calcareous to us, often providing more than half the total shipments of the stone (although at a drastically reduced value when compare to other Mediterranean countries). It’s a great story, except that there are no strong clues as how it’s happened.

Most customers don’t particularly care where someone cuts stone from the ground; they want a nice-looking slab or tile. With more interest in the point of origin – on political or health issues – we may be in for some interesting IDs on products in the future, however.

Emerson Schwartzkopf

You can read up-to-the-minute news on the dimensional-stone trade and search the archives at www.stonebusiness.net, where you can also find this blog at the top of the home page under the clever title of “Editor’s Blog.

The advertisements that appear on this page are placed by wordpress.com, and constitute no endorsement of the products or services. And I don’t get a dime from them, either.

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StatWatch: Stone Imports, June 2009

August 24, 2009 · Leave a Comment

Dimensional-stone imports remain in the doldrums, lagging far behind last year’s totals. The road to recovery may still be a few intersections away.

The following is taken from data collected by the U.S. Department of Commerce and the U.S. International Trade Commission. All figures give are for June 2009 (change from June 2008 amounts in parentheses). “Worked” stone is material that’s been shorn from boulders and blocks, and then cut in standard dimensional measures (such as slabs and tiles) and polished.

Worked Granite Volume
Total: 114,099 metric tons (-33.42%)
Sector leader: Spain @ 36,074 metric tons (2,210.95%)
Backfill: Wow! Maybe there’s resurgence here, especially with a massive upturn in Spanish shipments to offset some poor summertime number from others, including China’s 62.84% drop from last June. Then again ….

Worked Granite Value
Total: $65.7 million (-37.29%)
Sector leader: Brazil @ $22.8 million (-34.79%)
Backfill: …the numbers don’t add up, as Spain’s supposed bonanza in tonnage is way out of sorts with the $1.1 million in value (25% off last June’s pace, by the way) recorded at U.S. ports-of-entry. Either there are some misreported numbers, or Spanish slab granite is going for a less-than-roadbed-pebbles $31 per metric ton. We’ll bet on the former.

Worked Marble Value
Total: $16.9 million (-35.35%)
Sector leader: Italy @ $7.4 million (-41.19%)
Backfill: Italy continues to improve from its bottom-scraping February total of $4.9 million, but it’s still far behind last year’s figures. China’s $3.5 million in June again showed the smallest decline (14%) from last year.

Worked Marble Volume
Total: 14,619 metric tons (-28.64%)
Sector leader: China @ 4,774 metric tons (-11.18%)
Backfill: Italy easily wins the race in value, but China is slugging it out, ton-by-ton, to be the leader in landing slabs and tiles on U.S. docks. Mid-year metric-ton totals show China (23,615) pulling away from Italia (21,564).

Travertine Value
Total: $21.7 million (-37.25%)
Sector leader: Turkey @ $13.6 million (-36.77%)
Backfill: China offered a bright spot with a small 4.9% gain from last June, but with less than $1 million of actual travertine. The United Arab Emirates’ (UAE) small toehold in the market last year is giving way, with the $90,367 in travertine value showing a 61.64% decline from last year.

Travertine Volume
Total: 35,782 metric tons (-57.11%)
Sector leader: Turkey @ 25,481 metric tons (-62.26%)
Backfill: Turkey’s drastic drop in tonnage from 2008 levels is the main reason for the halving of travertine imports; Peru picked up its business by 17.84% from last June, but shipped only $2,015 tons. The UAE’s 163 metric tons registered a collapse of 94.26% from June 2008.

Other Calcereous Value
Total: $9.6 million (-45.10%)
Sector leader: Italy @ $1.7 million (-41.54%)
Backfill: The wild variances of the past 18 months seem to be flattening out; 2009 month-to-month declines are consistent, and Italy’s back in the top position. Lebanon’s mysterious big boom appears to be over; the $319,396 shipped to the United States this June shows a drop in value of 82.69% from the previous year.

Slate Value
Total: $5.0 million (-38.21%)
Sector leader: India @ $2.27 million (-25.86%)
Backfill: India turned up on top this month, beating China by close to $200,000 in import value. The difference between the two is larger than all of Canada’s $130,122 in slate shipped across the border, but good things come in smaller totals; that’s a 25.88% increase from June 2008 for our Neighbor to the North.

Emerson Schwartzkopf

You can read up-to-the-minute news on the dimensional-stone trade and search the archives at Stone Business Online, where you can also find this blog at the Main Menu under the clever title of “Editor’s Blog.”

The advertisements that appear on this page are placed by wordpress.com, and constitute no endorsement of the products or services. And I don’t get a dime from them, either.

Categories: Stone
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A Good Man to Know

August 16, 2009 · Leave a Comment

Early in Citzen Kane, Wall Street baron Walter Thatcher rolls his eyes when his financial ward, Charles Foster Kane, instructs him not to sell the New York Examiner, a struggling back-marker of a daily – because, in Kane’s work, “I think it would be fun to run a newspaper.”

Mr. Kane, meet the world of 2009. It ain’t fun anymore.

The demise of the U.S. newspaper trade gets the most attention, but times are tough as well for business-to-business or (B2B) publications, which is the fancy term for trade magazines. The news hasn’t been bright, as exemplified by this. Or this. Or this. Or the lightened loads of postal-person delivery, as magazines – including Stone Business – cut pages as revenues fall.

Sometimes, those cuts aren’t enough. Instead, the mailbox gets emptier as magazines stop the presses. It happened in the stone trade last month, with the announcement that Stone Industry News would suspend publication. Suspension is one of those words that crop up more and more – such as retooling, co-locate or strategic redeployment – that often put a different spin on bad news.

In the case of Stone Industry News, I’d like to think that this is just a rough patch, and a new issue will appear on my desk before the year’s out. I also know that I’m probably whistling a merry tune to the tombstones, but I can still hope.

You think it’s odd that someone would be wishing a competitor back into the fray, competing for news and advertising? Obviously, you haven’t met Francis Heck.

Francis, the publisher of Stone Business News, wasn’t the first person I met in the trade. It didn’t take too long in the trouping of trade-show aisles before we started seeing each other and jawing about the current state of affairs in the industry. He didn’t lack for opinions, and many of them made me laugh. All of them, though were on the mark.

Stone Industry News mixed current news releases, tips of the trade and a fair amount of down-home humor. When a controversy brewed in the industry, he let all sides let fly and let readers separate the steam from the substance

It also featured a monthly Page 2 editorial that drew from Francis’ decades in the trade, his innate common sense and an unqualified love of his country and his spouse, Lola. In a word, it was honest, and I enjoyed reading it every month.

I also enjoyed meeting Francis at trade shows. Our booths always seemed to be in close proximity, and we swapped more than the latest tales of the industry. On occasion, you’d find Francis stocking the Stone Business stand with more magazines, and I’d make sure plenty of issues of Stone Industry News filled his display.

Francis also knew the importance of finding the closest lounge after show hours, where you’d relax with a drink. This bit of Old School trade-show behavior seems to be distained by a new generation of people scurrying to meetings and receptions and tense business dinners, but the old-timers like Francis (and, more and more, myself) knew that plenty of business goes down when people put up their feet. More importantly, you made good friends this way, and Francis had the knack to always make another one.

I count myself among them. It makes me want to find another missive from Stone Industry News in the mail, so I can grumble over an ad we didn’t get and agree with another bit of Francis and his Page 2 wisdom. Hopefully, I’ll see another one and see Francis at more trade shows, as there’s more whiskey to be sipped and stories to be told.

And that would be fun.

Emerson Schwartzkopf

You can read up-to-the-minute news on the dimensional-stone trade and search the archives at Stone Business Online, where you can also find this blog at the Main Menu under the clever title of “Editor’s Blog.”

The advertisements that appear on this page are placed by wordpress.com, and constitute no endorsement of the products or services. And I don’t get a dime from any of them, either.

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