"Although the market demand is not as good as the peak period, it is much better than last year," said the sales director of a cement enterprise in Chongqing.
It is understood that, like the vast majority of regions in China, Chongqing has been facing a serious decline in the real estate industry since 2022. Especially last year, although some real estate projects maintained the construction status, there were deliberate delays in the construction process and passive construction. Affected by this, the demand for cement in Chongqing will decline sharply in 2022. After
entering 2023, there are positive signals in both real estate and infrastructure fields, which provide strong support for cement demand. "Our market demand has increased by 20% compared with the same period last year," the company said.
The sales director also pointed out that although the real estate industry in Chongqing is still in the doldrums as a whole this year, it has improved, downstream confidence is recovering, and construction progress has accelerated significantly. In addition, the promotion of infrastructure projects has also provided strong support for cement demand.
According to its introduction, at least four high-speed rail in Chongqing, including the Chengdu-Chongqing Middle Line high-speed rail, are under construction or are about to be constructed, and the whole construction period is expected to boost the demand for cement by more than 40 million tons, with an average annual demand for cement of more than 10 million tons. It is estimated that the demand for cement in Chongqing will be more than 60 million tons this year , and the demand for cement in Chongqing will remain at a high level in the next 3-5 years.
However, even though the demand for cement is still large, there are still large variables in the cement market in Chongqing. According to the sales director of the above-mentioned
enterprises, Chongqing is different from Sichuan and other provinces in that the concentration of cement production capacity is very low, large enterprises are numerous, and leading enterprises are lacking, resulting in a chaotic market structure. If the market competition and cooperation relationship can not maintain stability, even if the demand is still expected, the market will face greater downward pressure.