"The industry is very involved and the competition is too fierce." When referring to the recent situation of the cement industry in Hunan, many people in the industry expressed similar views.
In the view of the person in charge of a cement enterprise in Yueyang, many cement enterprises in Hunan have begun to lose money because of insufficient demand and low prices, and the "winter" of the cement industry has come.
From the cement price in Hunan tracked by China Cement Network, we can also see the "cold" regional market. In 2023, the cement price in Hunan basically showed a "falling" state, which is lower than same period last year.
According to the market data of China Cement Network, although some enterprises in Hunan are carrying out peak staggering production recently, the overall market demand is low and the sales pressure of enterprises is high. Since May, cement prices in Changde have continued to fall, with a cumulative decline of 50-60 yuan/ton. Surrounding Changsha-Zhuzhou-Xiangtan, Yiyang, Loushao and other markets continued to decline by 20-30 yuan/ton.
"If we can't reach a consensus on capacity control, we can only fight a price war." The above industry insiders said that the cement industry has had a good life for several years, and now some enterprises have begun to "engage in some small actions", which will affect the competition and cooperation relationship in the region, and also fight down the consensus among enterprises.
"Fighting and fighting are also cyclical." The person added.
However, there has been some good news from the Hunan market recently. On the morning of March 30, the centralized commencement ceremony of major projects in Hunan Province in 2023 was held simultaneously in 14 cities and prefectures, with 1158 major projects started, with a total investment of 522.1 billion yuan and an annual planned investment of 195.8 billion yuan. The start of
major projects will boost the demand for cement to a certain extent, but in an environment where supply can not be effectively controlled, how much effect can increased demand for cement produce? China Cement Network will also continue to pay attention.
At present, the downward trend of cement demand is prominent, energy prices remain high, costs remain high for a long time, and profit compression has become the norm. Improving energy efficiency and reducing cost pressure have become the key breakthrough points for cement enterprises to enhance their comprehensive strength and market competitiveness.
China Cement Network will hold the " 2023 China Cement Energy Conservation and New Energy Development Conference " in Chongqing on July 6-7, 2023. Explore new ways of energy saving and consumption reduction in cement industry.
After the meeting, we will visit Oriental Hope Chongqing Cement.