China Cement Network, the overall price of cement in Hubei Province has shown a downward trend since this year.
Specifically, after the increase in March, the price of cement in Hubei continued to decline, with a cumulative decline of more than 100 yuan/ton, and the industry situation was more severe.
Recently, China Cement Network and Hubei Cement Industry had a detailed exchange on the current market situation. The industry insiders said that, like other parts of the country, the decline in real estate situation led to a decline in cement market demand, the industry competition environment changed accordingly, and the competition and cooperation relationship between enterprises became more and more fragile in the face of the severe market situation.
Fundamentally, the current cement industry is facing a decline in demand and a sharp fall in prices, which is the inevitable result of market competition. As far as the advantageous enterprises are concerned, they have the cost advantage and take the lead in the price war. Although the price reduction leads to the decline of the total profit, the stable market share can reduce the fixed cost, and the increase of sales volume can partly offset the impact of the market decline, thus reducing the decline of the total profit.
The industry also believes that the contradiction between supply and demand in the cement industry is far from the most severe time.
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