In 2022, the overall price of sand and gravel market in Hubei was weak. Due to repeated
epidemics, poor weather and depressed real estate market, the demand for sand and gravel in Hubei market in 2022 has not seen much improvement. The continuous release of sand and gravel mining rights and new sand and gravel production capacity make the problem of overcapacity gradually prominent, and the price of sand and gravel continues to fall.
By the end of December, the gravel price index of Hubei Province closed at 72.14 points, down 16.01% from the same period last year, and the machine-made sand price index of Hubei Province closed at 89.87 points.
Data source: Digital Building Materials DataBM.
Quarterly review:
In the first quarter, the construction of engineering projects in Hubei Province was stable. Under the policy of "local New Year", many projects did not stop work during the Spring Festival, and the market was stable. The epidemic rebounded strongly in March, the recovery of demand was limited, and the rhythm of market recovery was disrupted.
In the second quarter, real estate could not hide its decline and market confidence was insufficient. In addition to the repeated epidemics, the construction site is restricted, the construction rate is low, the demand is low, and the price of sand and gravel continues to fall.
In the third quarter, July-August is the traditional off-season of the sand and gravel industry. Affected by the high temperature weather, the construction site slowed down, the shipment situation was poor, and the price was weak. In September, Hubei was affected by the water level drop, and the sand and gravel were blocked. In the first ten days of September, the prices of sand and gravel in Huangshi, Huanggang and other places fell after rising, and some of them continued to decline.
In the fourth quarter, the demand for "Silver Ten" improved slightly, superimposed on the impact of the continuous decline in the water level of the Yangtze River, and the rise in freight rates led to a rise in prices. However, due to the severe situation of epidemic prevention and control in Hubei and the lack of stamina to push up prices, the prices of sand and gravel from some major manufacturers in Huangshi, Huanggang, Jingmen and other places declined in November compared with the previous period. After the optimization of epidemic prevention and control measures in December, the demand for sand and gravel has recovered, but in the short term, facing the impact of the epidemic, the construction units are under great pressure of epidemic prevention, the project is advancing slowly, and the price of sand and gravel is difficult to rise significantly due to the "homecoming tide" coming ahead of schedule.
1. Analysis of
the operation of the industry market 1.
The depressed real estate market has seriously dragged down the recovery of the demand for sand and gravel. From January to November 2022, the growth rate of fixed assets investment in real estate industry in Hubei Province decreased by 89. From the construction side, from January to November 2022, the construction area of commercial housing in Hubei Province decreased by 7.23% and the sales area of commercial housing decreased by 15.
In terms of infrastructure, despite the policy efforts, the epidemic situation affected the construction of projects. The actual progress of infrastructure projects is slow, and the pulling effect on the demand for sand and gravel is limited. From January to October 2022, the investment in fixed assets in Hubei Province increased by 15.3% compared with the same period last year, while in 2021, the figure was 26.1
.
According to incomplete statistics, as of November 2022, there were 28 sand and gravel mines successfully sold in Hubei Province through bidding, auction and hanging. The total resource reserves were 3.77 billion tons, with a transaction volume of 6.79 billion yuan, representing a year-on-year increase of 12%, 431.22% and 429.2022
respectively. The average transaction price of sand and gravel mining rights in Hubei Province 1. Compared with Zhejiang, Jiangsu and other places, the price of mining rights in Hubei Province is low.
From the regional point of view, the mining rights transferred in Hubei Province are mainly concentrated in Enshi Tujia and Miao Autonomous Prefecture, Xianning City, Huanggang City, Shiyan City, Huangshi City, Ezhou City, Jingmen City and Yichang City, among which Enshi Tujia Autonomous Region has the largest number of mining rights, up to 11, and the largest number of mining rights in the whole province. However, most of the mining rights sold in Enshi are small mines, and 6 of the 11 mining rights have reserves of 5 million tons or less.
From the perspective of resource reserves, Huangshi has more than 2.1 billion tons of resource reserves, ranking first, while Xianning and Yichang have about 500 million tons of resource reserves, ranking second and third respectively. Enshi, which has the largest number of sales, is mostly small mines, ranking only sixth in reserves, at about 94.47 million tons.
Data source: DataBM. More than 60% of the 11 mining rights were acquired by local state-owned enterprises, while the remaining 40% went to large cement enterprises such as Huaxin and China Resources and joint venture subsidiaries of large cement enterprises and local state-owned enterprises.
According to incomplete statistics, as of November 2022, 8 aggregate production lines have been put into operation in Hubei Province, with an additional annual production capacity of about 1.
Aggregate production capacity is mainly located in Enshi, Huanggang, Huangshi, Yichang and other places. Enshi's new production capacity is 3.6 million tons, Huanggang's new production capacity is 8.8 million tons, and Huangshi's new production capacity is 1.
Data source: DataBM. The total investment of the project is 10 billion yuan, and the annual output of 100 million tons of machine-made sand and gravel is constructed with high safety and environmental protection standards. It can achieve an annual output value of 7 billion yuan and a profit and tax of more than 1.5 billion yuan. The annual production capacity of the
remaining seven lines is 3 to 10 million tons.
2. Industry development information tracking
In 2022, Hubei Province continued to promote the construction of green mines, protect the "green" background of mines, and benefit the ecological Jinyinshan. In terms of
sand and gravel transportation, Hubei Province has continuously brought into play the advantages of regional transportation and market space, strengthened the function of transportation market hub, and accelerated the construction of sand and gravel consolidation center.
In view of the problem of illegal sand mining in rivers, Hubei Province has promulgated relevant systems and regularly organized joint law enforcement actions for special regulation of sand mining in rivers.
In addition, relevant enterprises are constantly strengthening cooperation to jointly promote the construction of sand and gravel industry in Hubei Province.
2.
In October, the Department of Natural Resources of Hubei Province issued the Technical Specification for Natural Restoration of Historic Abandoned Open-pit Mines in Hubei Province (Trial) (hereinafter referred to as the Specification), which is the first local standard for natural restoration of historic abandoned open-pit mines in China.
2. This route is the third river-sea direct route in Hubei Province after Zhoushan-Wuhan and Zhoushan-Huangshi. With the help of the Yangtze River Golden Waterway, it will be more efficient and convenient for Huanggang to transport goods from the river to the sea.
In March, three 5000-ton cargo berths of Badong Port Sand and Stone Collection Center (Hongyu Logistics Integrated Terminal Project in Baota River Port Area of Badong Port) obtained port operation licenses, marking the formal opening of the largest single public water intermodal transport project in Enshi Prefecture.
2.
In May, Hubei Provincial Department of Water Resources, Department of Public Security, Department of Transportation, Department of Agriculture and Rural Areas, Yangtze River Shipping Public Security Bureau and Yangtze River Navigation Administration jointly issued the Joint Law Enforcement System for River Sand Mining Management in Hubei Province, marking the further improvement of the multi-sectoral cooperation mechanism for river sand mining management in Hubei Province.
From May 11 to 13, the Water Resources Department of Hubei Province organized a joint law enforcement action for the special regulation of illegal sand mining in rivers throughout the province. It inspected more than 2570 kilometers of rivers, dispatched 29 law enforcement boats, 386 vehicles and 1680 law enforcement officers, inspected 32 centralized berthing points for sand mining vessels, and boarded 96 sand mining vessels.
From July 19 to 26, the Sand Administration Bureau of the Yangtze River Commission and the Public Security Corps of the Yangtze River Shipping Public Security Bureau formed a joint unannounced visit group to carry out joint unannounced visits to sensitive waters in the middle and lower reaches of the Yangtze River from Jianli, Hubei Province, to Ma'anshan, Anhui Province, and waters where recent reporting clues are concentrated.
From August 22 to 26, the whole province of Hubei organized a joint law enforcement action for illegal sand mining in rivers, with 877 law enforcement officers, 98 law enforcement boats and 7 unmanned aerial vehicles along the main stream of the Yangtze River. 21 centralized berthing points (temporary detention points) for sand dredgers and 105 sand dredgers of various types were inspected.
2.
In July, Hubei Wushan Mining Co., Ltd., a joint venture of 56 private stone enterprises, was officially unveiled, and Suizhou Wulian Mining Co., Ltd. and Suizhou Wusui Mining Co., Ltd. were also unveiled on the same day. Both Wulian Mining and Wusui Mining are jointly established by Wushan Mining with 60% investment and Jinsui Mining, a wholly-owned subsidiary of Suixian Construction and Development Group, a state-owned enterprise.
With the adjustment of epidemic prevention and control policies and the implementation of infrastructure and real estate support policies, it is expected that the sand and gravel market in Hubei will recover next year. However, Hubei Province is rich in sand and gravel resources, active in mining rights trading, and has a large scale of production capacity to be released. With the continuous release of production capacity, it is expected that the price of sand and gravel will remain weak in 2023.
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