Down 20 yuan/ton, the price of cement in the Pearl River Delta ended its continuous rise.

According to China Cement Network Market Data Center, some cement enterprises in the Pearl River Delta region of Guangdong have recently lowered the price of cement by 20-30 yuan/ton. At present, the market demand is weak and the inventory of enterprises is running at a high level. Since early

October, the price of cement in Guangdong has been rising

continuously, and China Cement Network has contacted several cement enterprises in the Pearl River Delta. Local enterprises said that the main reasons for this round of cement price reduction in the Pearl River Delta include three aspects.

1. The amount of cement entering Guangxi is increasing. According to a cement enterprise in the north of Guangzhou, at present, the cement imported from Guangxi into Guangdong market every day is about 60-70 thousand tons, which is higher than same period in previous years, and the price is lower, which leads to the intensification of market competition in the Pearl River Delta. In order to maintain market share, the enterprise sells at a lower price.

2. After several rounds of price increases, the price is relatively high, and a large number of "zombie enterprises" revive. Another cement enterprise around Guangzhou said that in recent years, the price of cement in Guangdong has risen significantly, which has led some half-open and half-stopped cement enterprises to re-enter production and increased market supply. China Cement Network information shows that from early October to the end of November, Guangdong cement prices experienced several rounds of increases, with a cumulative increase of 70-80 yuan/ton.

3. Low market demand. Market information shows that since December, the demand for cement in the Pearl River Delta has remained relatively weak. Local cement enterprises said that although the rush of large-scale projects at the end of the year brought a certain demand for cement, the demand for civil market declined sharply, resulting in insufficient overall market demand and high inventory of enterprises. In particular,

local enterprises pointed out that the core pressure of Guangdong cement market lies in Guangxi. Especially last year, tens of millions of tons of clinker were put into production in Guangxi, and a large number of new production enterprises have targeted the target market at Guangdong. Since this year, the total amount of Guangxi cement entering the Guangdong market has increased significantly, which has increased the downward pressure on the market.