Fujian plays an important role in the cement market in Fujian. Since December 4, the price of Fujian cement has been raised by 20 yuan/ton.
Why is the price going up? China Cement Network learned that:
First, the price was as low as below the cost line, and the sales manager of a large cement clinker base
in Longyan said that the main reason for the cement price increase was that in the follow-up process of the cement price increase in mid-October, some cement manufacturers wanted to seize market share. Disrupting the market, prices fell rapidly, and led to cement prices below the cost line, the rest of the cement manufacturers hope to stop losses by rising, raising cement prices to maintain the operation of cement plants.
Second, driven by the surrounding market, manufacturers have a strong
willingness to raise prices. According to the feedback from a cement manufacturer in Sanming, it is mainly driven by the rising prices of cement in Jiangxi and Zhejiang markets.
According to China Cement Network, since December 1, Jiangxi has raised the price of cement by 10-20 yuan/ton, and Zhejiang has raised the price of cement by 20-30 yuan/ton. Driven by the rising prices in Jiangxi and Zhejiang, local cement manufacturers in Fujian have a strong willingness to raise prices.
For the cement market in the later period and next year, cement manufacturers in both places said that they were not optimistic, "the demand is not good, the price is more likely to fall", "the real estate market will not improve greatly", "it is difficult to support without major projects".
In such a market environment of declining demand and depressed market, a person who is deeply engaged in the cement industry in Fujian said that for a long time, as a cement price depression in East China, the market is chaotic and the price of cement is one of the main reasons for this. At present, the surrounding market industry has good self-discipline and price stability, but Fujian has fallen into disorderly market competition. If Fujian cement market does not go downhill in the future, the "price depression" must make countermeasures.
"The current market demand is not good, only to seize market share is not a long-term solution," he told China Cement Network, cement dumping at low prices will only hurt both sides, "there are ups and downs in line with market rules." .
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