"After twenty years of hard work, I returned to the pre-liberation period overnight." The person in charge of a private cement enterprise in Longyan, Fujian, said the situation of the cement industry in Fujian.
According to China Cement Network Market Data Center, the terminal market demand in Fujian has been general recently, but due to the high cost pressure and the generally low regional cement prices , enterprises have a strong willingness to stabilize prices. In the middle of the month, the price of cement in Fujian was generally notified to be raised by 15-30 yuan/ton, and the quotation of leading enterprises in the week basically rose and then stabilized.
"This wave of prices has stabilized after rising, but the overall situation is still not optimistic." Several cement enterprises gave feedback to China Cement Network.
According to the tracking of China Cement Network, cement prices in Fujian have not experienced a real recovery since this year, and have been in a continuous bottoming stage. At present, cement prices have fallen back to the level of 2017.
If we only look at the local cement production and sales in Fujian, Fujian is one of the few provinces with no excess capacity. Without the pressure of overcapacity, why is Fujian still in the price depression of East China and more depressed in the downward demand period?
The main reasons are:
First, the impact of foreign cement is obvious. The terrain of Fujian Province is high in the west and low in the east, lacking inland shipping resources, but the economic center of gravity is in the eastern coast, which has created a serious separation between the local cement production base and the market. Local cement can only be transported from the resource-rich western region to the eastern core market by automobile, while foreign cement can be transported to the eastern core market of Fujian by relying on convenient water transport conditions. Because of the convenient water transportation, foreign cement has a considerable influence in Fujian, and the scale of foreign cement is more than ten million tons every year, which forms a peculiar phenomenon that enterprises in the province "can not do" enterprises in other provinces.
Second, the concentration of production capacity in the province is low. According to the data of China Cement Network, by the end of 2022, the total annual production capacity of clinker in Fujian Province was 55.8 million tons, and the concentration of production capacity of the top five enterprises was only 60% , and the gap between the scale and strength of production capacity among enterprises was not large. It can be said that there is no real "provincial boss" in Fujian.
Especially under the background of downward demand and intensified contradiction between supply and demand, the impact of foreign cement and the market situation of "equal share" in the province have caused Fujian to experience disorderly price competition and market grabbing for several times. A person in charge of a private enterprise
in Fujian even cried to the China Cement Network: "The pressure is too great, astronomical loans." Of course, the loan pressure is an example, but we can also see the difficulties and difficulties of Fujian cement enterprises.
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