Clinker prices have gone up! Is the cement market recovering?

  On July 15, the National Cement Price Index (CEMPI) closed at 142.91 points, down 0.38% month-on-month and up 1.87% year-on-year. The Yangtze River Basin Cement Price Index (YRCEMPI) closed at 133.71 points, a slight increase of 0.02% from last week.

Demand in all parts of the country has not improved significantly, among which the southern region is driven by the increase in the price of clinker in the Yangtze River Delta, and the price of clinker has risen. In addition, manufacturers in many places intend to push up cement prices; the overall demand in some northern regions is weak and stable, and cement quotations in most regions are temporarily stable this week.

Specifically:

Huadong Region

  Jiangsu: There was basically no significant change in market prices across Jiangsu this week. Around the 12th, the clinker price notice in the Yangtze River Delta region was raised by 20 yuan / ton. In addition, the cement price in various parts of the province has generally been at a low level, and enterprises have a strong willingness to increase prices. It is reported that some major manufacturers may try to push up cement prices by 20-30 yuan/ton around late July to early August. The specific situation remains to be seen. In addition, the current market demand in Shanghai has recovered to 70-80%, and the market supply has been relieved to a certain extent.

  Zhejiang: Affected by the high temperature weather, the construction progress of some construction sites has slowed down, and downstream demand has declined, but the overall shipments can still reach 70-80%. In addition, the previous price has dropped to a relatively low level, and the price of clinker has been increased by 20 yuan / ton to support . From the 12th, some major manufacturers in Wenzhou and Taizhou along the coast of Zhejiang tried to push up the price of cement by 10 yuan / ton, and the quotations of other enterprises were temporarily stable. In addition, recently, the transaction prices of some enterprises in the central and southern Zhejiang market have shown signs of a dark decline, and the specific situation needs to be further verified.

  Anhui: Recently, the market demand in Anhui's coastal areas has recovered. In addition, the price has dropped to a relatively low level in the early stage. The downstream grinding stations have increased stockpiles, and the clinker inventory has dropped to around 40-50%. The delivery is slightly tight. From the 11th, some major manufacturers along the Yangtze River announced to increase the price of clinker by about 20 yuan/ton, and the surrounding Jiangsu and Zhejiang markets followed suit. After the adjustment, the offshore clinker along the river is currently listed at 360-370 yuan/ton. In terms of cement prices, some major manufacturers in Suzhou, Huaibei, Bozhou and other places in northern Anhui continued to notify the price of cement by 20-30 yuan/ton around the 9th, and the remaining market quotations were temporarily stable.

  Fujian: The temperature has continued to rise since July, the construction time of the construction site has been shortened, the terminal market demand in Fujian has declined significantly, and the inventory of enterprises has generally been high. However, the demand in the civilian market is relatively good, and the average daily shipment of enterprises can reach about 3,000 tons. In terms of cement prices, the transaction price of cement in Fujian has continued to decrease since June, and the prices in many places have now fallen to the cost line. During the week, the quotations of enterprises around the world stabilized. However, July-August is a period of high incidence of typhoons, and the market demand is still in a downward trend. In the short term, cement prices in Fujian may be stable and weak.

  Jiangxi: Affected by high temperature weather, downstream customers are not very motivated to get goods, the operating rate of construction sites and mixing plants has declined, and it is difficult to improve demand and sales. Around the 14th, the bulk cement prices of some manufacturers in Nanchang and Jiujiang areas dropped by 20 yuan/ton, and the rest of the industry has not followed up and adjusted. In addition, driven by the increase in clinker prices in the Yangtze River Delta region, the quotations of some clinkers in Jiujiang region were raised by 20 yuan / ton on the 11th.

  Shandong: Recently, Shandong is still affected by high temperature and rainy weather, and the terminal demand is relatively weak. The shipment volume is only about 40-60%, and the market competition is fierce. Since the middle of the year, some markets in Zaozhuang, Zibo, Linyi, Jining and other places still have a small floating price reduction of 10-20 yuan / ton, and the remaining market prices are stable and weak. On the whole, affected by the off-season of the market, the market prices in all parts of Shandong have started to decrease continuously since the middle and late May, with a cumulative decrease of nearly 100 yuan per ton in many places, and the market quotations are relatively chaotic.

South Central Region：

  Henan: It is reported that the cement clinker production line enterprises in Henan will carry out 20-day off-peak kiln shutdown in summer from July 16 to August 5. Perhaps driven by this, some major manufacturers in the province intend to start trying to increase the cement price by about 30 yuan/ton from the 16th. At present, the market is still in the traditional off-season, the demand and sales volume are generally not high, and the inventory of enterprises is at a high level. The actual implementation of this push up remains to be observed.

  Hubei: Recently affected by high temperature and rainy weather in Hubei, some construction sites have suspended construction, market demand and sales have declined significantly, and companies have been under great inventory pressure. In terms of cement prices, most of the market prices in the province have bottomed out, and manufacturers have no intention to cut prices. In addition, or driven by the increase in clinker prices in the Yangtze River Delta region, the clinker quotations of some manufacturers in Hubei increased slightly by 10-20 yuan / ton.

  Hunan: The temperature is high, some construction sites are affected, and the overall market demand in Hunan is weak. In the early ten days of Hunan, some manufacturers in Changzhutan, Loushao and other regions notified that the cement price was raised by 20 yuan/ton, but the implementation was not good, and cement shipments were less. The price in Changde area was generally at a low level in the early stage, and it was basically implemented after the announcement of an increase of 20 yuan / ton in the first ten days. At present, enterprises in the province are implementing off-peak production, but most enterprises' clinker inventory is still high and difficult to consume.

  Guangdong: Affected by the high temperature and rainy weather recently, the cement shipments declined slightly, and the inventory pressure of enterprises was relatively large. From the 11th, manufacturers in Zhanjiang and Maoming have lowered their cement prices by 20-30 yuan/ton, and some manufacturers have lowered their prices by 50 yuan/ton. In addition, after some manufacturers in the Pearl River Delta region lowered the cement price by 20-30 yuan/ton from the end of June to the beginning of July, the cement prices in Jiangmen and Zhuhai continued to decrease by 20-30 yuan/ton around the 13th. In addition, around the 8th, the manufacturers in Meizhou area lowered the price of high-standard bulk mud by 10 yuan/ton in eastern Guangdong.

  Guangxi: Affected by the recent high temperature and rainy weather, the construction progress of some construction sites has slowed down, the demand for cement in Guangxi has further weakened, and the inventory of enterprises has remained high. In order to grab market share, after major manufacturers in Nanning, Chongzuo, Beihai, Fangchenggang, Qinzhou and other regions lowered their cement prices by 15-30 yuan/ton at the beginning of the month, some local manufacturers continued to lower their cement prices by 20-30 yuan/ton around the 13th. In addition, since July, some manufacturers in Liuzhou have lowered cement prices by 30-50 yuan/ton, and the mainstream price has dropped by 50 yuan/ton.

Southwest Region：

  Chongqing: The market demand in Chongqing area is average, and the company's shipments are not good. In order to increase shipments, after some manufacturers in the main city and western Chongqing area lowered their cement prices by 20-30 yuan/ton from the end of June to early July, some manufacturers continued to lower their cement prices by 20 yuan/ton in the middle of the year, while the rest of the industry did not follow suit. From July to August, the kilns in Chongqing will be suspended for 25-30 days at different peaks, and the pressure on clinker inventory is not great. Coupled with the increase in clinker prices in the Yangtze River Delta region, the clinker prices of some manufacturers in Chongqing increased slightly by about 20 yuan / ton.

  Sichuan: Affected by the high temperature weather, the market demand and sales volume were weak, the inventory of enterprises was generally high, and some warehouses were full and kilns were shut down. In addition, the entry of foreign low-priced cement has caused a certain impact on the local market. In order to resist foreign low-priced cement, major manufacturers in Guangyuan, Sichuan have lowered the price of cement by 20 yuan/ton from the 12th. In addition, some manufacturers in Guang'an, Ganzi, Dazhou, Guang'an and other regions lowered their cement prices by RMB 20-30/ton in the first ten days.

  Yunnan: The overall market demand in Yunnan is poor, some companies ship less than half of the normal, and the inventory is under pressure at a high level. In terms of cement prices, from the end of June to the first ten days of July, some manufacturers in Dehong Prefecture successively lowered their cement prices, with a cumulative decrease of about 90 yuan/ton, and the quotations of individual enterprises remained firm. The quotations of most companies in other markets in the province are stable, and there is no significant change for the time being.

  Guizhou: The market demand in Guizhou is weak, and some companies' shipments are about 30-40% of the normal state. In terms of cement prices, the transaction prices of some manufacturers in Liupanshui and Anshun continued to drop by 20-30 yuan/ton in mid-term, and the quotations in other markets in the province did not change significantly. At present, most companies' inventories are still high, and the overall market price remains stable at a low level.

North China：

  Beijing-Tianjin-Hebei: Influenced by the continuous high temperature weather, coupled with the impact of some low-priced cement in the surrounding Tangshan area, the sales pressure of local enterprises has increased, and the outbound volume is only about a few hundred tons. In terms of cement prices, the transaction price in Beijing has been reduced by 10-20 yuan/ton recently. Since July, some companies have reduced the cumulative reduction by about 40-50 yuan/ton, and Tianjin area has continued to follow up slightly. In addition, the market demand is weak in the off-season, and cement prices in Xingtai and Handan in central and southern Hebei continue to drop by 10-20 yuan/ton. In order to reduce the pressure of loss, the Hebei Building Materials Industry Association decided that the province will carry out 15-day off-peak production in summer from June to July.

  Shanxi: The market demand in the off-season continued to be weak, the shipment volume was not satisfactory, and the impact of low-price cement from the outside world has recently led to some companies in Changzhi and Linfen regions. At present, corporate inventories are generally at a high level, and the rest of the market does not rule out signs of a dark decline. In addition, some areas such as Changzhi in Shanxi intend to start staggered peaks and stop kilns for 20 days from the 16th.

  Inner Mongolia: The price of cement in Inner Mongolia has fluctuated significantly compared with the previous period.

North-west region：

  Shaanxi: Influenced by the recent rainy weather in Guanzhong area, market demand is sluggish, cement shipments are not high, corporate inventories are generally running at a high level, and some warehouses are full and kilns are shut down. In addition, the impact of some foreign low-price cement has a greater impact, and the sales pressure of local enterprises has increased. In order to seize market share, starting from July 8, some major enterprises in Xi'an, Tongchuan, Xianyang, Weinan, Baoji and other places in Shaanxi have notified to reduce the cement price by 20-30 yuan/ton, and the rest of the industry will follow up with the reduction. In addition, the current market transaction prices in many places have dropped to relatively low levels, and individual companies in the region intend to try to raise cement prices. The specific situation remains to be seen.

  Gansu: In the off-season of the market, cement sales are not good, and inventory pressure is increasing. In order to increase sales, some major manufacturers in Dingxi area of Gansu will lower their cement prices in recent days, while the quotations in the rest of the province have not changed significantly for the time being.  

  Ningxia, Qinghai, Xinjiang: During the week, some enterprises in Ningxia continued to reduce the transaction price of the civilian market by 10-20 yuan/ton, but the quotations of major factories were too high for key projects.

  The overall quotations in Qinghai and Xinjiang are temporarily stable.

North-east area：

  Heijiliao: The operating rate of construction projects in the western Liaoning region of Liaoning is low, the market demand and sales volume are both weak, and the company's inventory is under high pressure. In addition, due to factors such as the reduction of surrounding cement prices and the impact of foreign low-cost cement, local enterprises are under great sales pressure. In order to increase the shipment volume, the cement prices of some manufacturers dropped by RMB 20-30/ton during the week. Cement quotations in Heilongjiang and Jilin areas were temporarily stable during the week.

  The Cement Big Data Research Institute predicts that the high temperature superimposes the demand in the off-season. Although there is a strong willingness to increase prices in many places, it is expected that the overall price will be stable and weak next week, and some areas may increase slightly.