To resolve the overcapacity, the first is "swelling" in theory the second is to expand the market demand. Under the condition of the refractories market shrinking, expanding market demand is not possible. In a shrinking market, in order to survive to spell price for users, manufacturing enterprises conduct a disorderly competition. So only need "swelling", and "swelling" can only be taken to eliminate market backward production capacity. Therefore, how should refractory materials get rid of overcapacity, the key point to make rectification in transformation and upgrading, environmental governance, resource control, etc. The following four aspects as the analysis of current situation of the development of refractory industry, and corrective actions of refractory industry.

1. Refractory enterprises need transfer and upgrade to energy saving, environmental protection, improving quality and reducing costs, and the automatic production

At present, the refractory enterprises existing problems are: serious pollution, harm to people's livelihood, high energy consumption, waste of resources, hard to recruit workers, large intensity, product sales of low-margin, difficult to accept payments and loss ratio is widening. Transformation and upgrading must conduct zero emission to environmental. Products are pollution-free, the service life is long, production equipment is automation development. Save people, save electricity, save maintenance, safety in production to reduce production costs, enhance product competitiveness. In the implementation of new environmental laws and severe overcapacity in the fierce competition, not to conduct environmental protection zero emissions, automated production equipment, high-quality development and cost reduction is no way out. Through the transformation and upgrading, energy saving, environmental protection, improving quality, cost reduction to occupy the market, promote the market elimination backward capacity.

2. Refractory enterprises layout need to go joint, mergers and reorganization enterprise of transformation and upgrading

At present, due to a lot of enterprises, small and scattered pattern, exacerbate overcapacity and disorderly competition, lack of enterprise market power. To guide joint coordination with strength enterprises merging to form large enterprise groups, to promote healthy development of the industry.

3. Refractory enterprises need to transfer and upgrade from the supplier  to service provider

In constant innovation and development of science and technology, the management is also constantly innovation transformation.  After-sale services of products decided the development of the market. As the main users steel mills for overall contracting of refractory material and according to the steel production and settlement, has placed refractories enterprises into the service position.