According to the China Cement Network Market Data Center news, the recent continuous rain weather, the weak market demand in Zhejiang coastal areas, coupled with the impact of foreign cement, local enterprises are under great pressure to sell. At present, the quotations of major enterprises in Ningbo, Taizhou and other places are temporarily stable, but the transaction prices in the early market have fallen by different margins.
"This period, because of the high temperature, typhoon and other weather effects, is the off-season." When China Cement Network investigated the cement market in Ningbo, the local large-scale grinding cement enterprises also said that due to the approaching of the Asian Games in Hangzhou and the arrangement of competitions in Ningbo, some projects stagnated, the demand for cement weakened, and the price fluctuated.
"Cement sales in the first half of the year declined slightly compared with the same period last year, but basically achieved the quarterly target, with a small profit." According to the feedback from local cement enterprises, the key projects in the responsible sales areas (including Ningbo, Zhoushan and Taizhou) have supported the demand for cement, and it is expected that there will be a "small climax" after September and October, and the annual profit target is expected to be achieved.
Prior to this, there were relevant news reports that Ningbo set off a major project construction boom. From January to May, the investment in key projects in Ningbo in 2023 increased by 33% year-on-year, and the annual plan completion rate reached 47.5%. There are 136 projects planned to start in the year, of which 63 are planned to start from January to May and 80 are actually started. The support of
major projects is only the external cause of the stable development of local cement enterprises in Ningbo, and the main internal cause lies in the fine cost control of enterprises themselves. "The electricity cost of the grinding station is high, but the electricity consumption of the cement grinding process of our enterprise is less than 21.5k Wh/t, which is very competitive among the peers." Local enterprises emphasize.
Regionally, the coastal areas of Zhejiang have convenient land and water transportation, low freight, and good project support in the sales area. From the enterprise's point of view, the cost competitiveness is full and the brand effect is obvious. These are the key factors for the above-mentioned cement enterprises to make steady progress in the current market downturn.
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