Is Guizhou Cement Market Today the Future of the National Cement Market?

First look at the cement market in Guizhou today:

1. "Last year, the cement production capacity of Guizhou Province was about 150 million tons, but the demand for cement was less than 50 million tons, which was only a fraction."

2. "In the first half of this year, Guizhou's cement output was about 21 million tons, down about 2 million tons from the same period last year." A cement enterprise in Guiyang said that the current situation of Guizhou cement market is basically "how much to produce and how much to sell", and the output will not be much higher than sales volume.

3. From the beginning of the year to now, the price of cement has dropped by almost 80 yuan/ton. In the first half of this year, most enterprises in Guizhou should be in a loss state.

4. Due to the sluggish demand for cement and serious overcapacity, the number of off-peak production days in Guizhou cement industry has been increasing. Guizhou Cement Industry Association issued the Notice on Extending the Production Time of Peak Staggering in the Third Quarter, requiring all cement enterprises in the third quarter to implement precise peak staggering and rigid kiln shutdown for 55 days. In the previous first and second quarters, Guizhou cement enterprises have implemented 60 days of kiln shutdown.

To sum up, at present, demand is sluggish, overcapacity and prices are plummeting. This is not only a problem faced by Guizhou cement market, but also a common phenomenon throughout the country.

However, unlike the current situation of price war in other regions, Guizhou cement industry has adopted the way of extending peak staggering and maintaining prices to cope with the problems together.

In the early stage of the sharp decline in demand, Guizhou cement enterprises also used short-term off-peak kiln shutdown to adjust supply and demand immediately to alleviate the fierce contradiction between production and demand, but because of the serious overcapacity, ultimately to no avail.

As a result, cement enterprises focused on seizing the market stock, and the price of cement in Guizhou once plummeted. After the cruel market competition, Guizhou cement enterprises generally realize that disorderly competition will only make the sluggish market worse, and jointly safeguarding the interests of the industry is a long-term solution.

But even so, it is still unable to prevent the Guizhou market from continuing to decline in prices in the first half of this year and the arrival of large-scale losses for enterprises.

Some people say that today's cement market in Guizhou may be the future of the national cement market. The current situation of price disorder in the Yangtze River Basin and Guangdong and Guangxi has been experienced in Guizhou as early as a few years ago.

Faced with difficulties, the whole industry should establish a consensus of giving priority to the interests of the industry, otherwise, only endless losses like Guizhou today will be ushered in. What do you think

of this?