Cement production ends 6 years of continuous decline! 2023 What is the actual situation of Qinghai cement market?

Recently, China Cement Network released the cement output of all provinces and cities in China from January to November 2023. Among them, Qinghai produced 11.6191 million tons of cement in the first 11 months of this year, an increase of 22.30% over the same period last year, ending a six-year decline in production. According to the data of

China Cement Network, the annual cement output in Qinghai has been declining for many years since 2016. By the end of 2022, the cement output was only 9.7533 million tons, nearly doubling compared with 18.7461 million tons in 2016. However, in 2023, this decline has changed.

Why will Qinghai's cement production rise this year? China Cement Network contacted some local cement enterprises. There are two main aspects. First, last year's epidemic backlog of some projects has been released this year, and second, the start of key projects such as Xicheng Railway has effectively stimulated the local demand for cement. A cement company

in Haidong said that the demand for cement this year is obviously much better than last year, benefiting from the support of major projects, cement sales this year increased by 30% -40% year-on-year.

"At present, many projects on our side have been shut down, and there is basically no cement sales." An industry insider in Hainan Xizangan Autonomous Prefecture said that over the year, cement sales of enterprises increased by 10%-20% year on year.

Xining cement enterprises also reported that the demand for cement this year was relatively better than last year, mainly driven by key projects. The enterprise said that this year's Qinghai Highway Project was the same as last year's, with a net increase in the Xicheng Railway Project, which alone increased sales by 400000 tons. A cement enterprise

in Haixi said that the demand for cement in Haidong and Xining areas was mainly driven by the Xicheng Railway, but the enterprise was more than 800 kilometers away from the provincial capital city, and there were no major projects around it, so the demand was general. The increase in sales volume of enterprises compared with last year was mainly due to the fact that the epidemic enterprises basically did not sell cement in August, September and October last year. In addition, 20% of the company's sales this year are shipped to Xizang. According to

public data, this year, around major infrastructure construction, Qinghai focused on the implementation of Xicheng Railway, Xining Airport Phase III, Tongsai Expressway, Maerdang Hydropower Station and other projects, effectively driving the local cement market demand. In terms of

price, the price of cement in Qinghai has been relatively stable since this year. During the exchange, we learned that as a place with serious overcapacity, the cement price in Qinghai can remain stable mainly because of the good implementation of local peak staggering, high concentration of production capacity and the fact that enterprises will not make trouble with the market.

It is reported that Qinghai requires cement clinker enterprises in the whole province to stop production for 180 days every year. "One year of production is the same as half a year of production, so why not carry out peak staggering production well?" An industry insider spoke bluntly.