- Time:Dec 20, 2022
Recent cement prices in Yunnan, Fujian, Jiangsu and other places have been reduced, the rate of reduction in about 30 yuan / ton. Industry insiders said, near the end of the year, the north into the construction off-season, short-term cement volume, price is less likely to go higher. However, listed cement companies are generally optimistic about next year's market. Cement price cut According to the big data center, in early December, cement prices in ...
Recent cement prices in Yunnan, Fujian, Jiangsu and other places have been reduced, the rate of reduction in about 30 yuan / ton. Industry insiders said, near the end of the year, the north into the construction off-season, short-term cement volume, price is less likely to go higher. However, listed cement companies are generally optimistic about next year's market.
Cement price cut
According to the big data center, in early December, cement prices in Kunming, Yuxi and other areas fell back by 20-30 yuan/ton. from December 10, some major manufacturers in Nanjing, Zhenjiang and other places in Jiangsu Province notified a reduction of cement prices of various varieties by about 30 yuan/ton, and the rest of the same industry will follow one after another; in addition, from 10, major manufacturers in Lianyungang, Suqian, Xuzhou and other places cut cement prices by 20 yuan/ton. So far, the cement price in Jiangsu area has basically completed a round of general reduction.
Cement prices were cut mainly because the market entered the off-season and demand for cement weakened, with daily shipments of cement plants in many areas less than 50%. "Inventory of cement enterprises rose rapidly to a high level. Enterprises cut prices one after another to promote in order to seek shipments."
It is worth noting that some of the implementation of peak production efforts in the area of cement prices slightly higher.
In Hunan region, for example, some major manufacturers in Changsha, Zhuzhou and Xiangtan notified an increase of cement price by 30-50 RMB/ton from the 12th. Since entering December, many cement companies have added 10 days of peak production time, which further reduced the market supply. In this context, some cement factories have increased the cement prices.
The market is expected to improve next year
National Bureau of Statistics data show that in November 2022, national cement production was 192 million tons, down 4.7% year-on-year and 5.9% YoY. from January to November 2022, the country's cumulative cement production was 1.95 billion tons, down 10.8% YoY, narrowing by 0.5 percentage points from January to October.
The research report shows that construction is gradually entering the off-season and cement shipment rate has declined. Subsequently, with the continued implementation of peak production in cement enterprises around the world, cement inventories are expected to continue to be optimized and prices will be supported.
For the short-term market trend, some institutions believe that the national cement market demand will fall back, and cement prices will be weak down. On the demand side, the northern region has basically stagnated, and the southern region will enter the final catch-up period in 2022. In some areas, there is the phenomenon of early project stoppage, cement demand is less likely to go higher in the short term.
It is worth noting that, from the announcements issued by listed cement companies, many of them are optimistic about the cement market next year. Maintain optimistic confidence in next year's boom recovery. On the demand side, the real estate industry will step into the recovery channel next year, while the key projects of infrastructure projects will boost the demand; on the supply side, the strict implementation and execution of the policy of capacity reduction and peak production will bring the supply side under a certain degree of control. In addition, a series of policies have been introduced to impose more constraints on energy consumption and carbon emissions, which will have an impact on cement supply.
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