Shandong: Poor implementation of several rounds of upward adjustment since August

According to China Cement Network, some major manufacturers in Shandong have continued to implement peak staggering and kiln shutdown since September 24, while pushing up the cement price by about 30 yuan/ton again, and the specific situation needs to be tracked. Since the end of

August, Shandong cement prices have experienced several rounds of increases, but due to insufficient demand, weak market support, weak overall situation, prices have fallen rapidly.

Real estate is the core driving force of cement demand, in Shandong market, the downward trend of the real estate industry is also the key factor leading to the decline in cement demand.

From the demand side, with the deepening of the real estate regulation policy, the growth rate of real estate investment has slowed down, and the demand for construction cement has gradually declined.   

Data show that real estate investment in Shandong Province from January to June 2023 was 455.283 billion yuan, a decrease of 25.33 billion yuan compared with the same period in 2022, a decrease of 4.8% compared with the same period in 2022, of which residential investment was 366.09 billion yuan, a decrease of 10.011 billion yuan compared with the same period in 2022, a decrease of 2.2% compared with the same period in 2022. In terms of

output, Shandong's cement output from January to August was 84.3704 million tons, a year-on-year decrease of 2.74%. In contrast, the national cement output from January to August increased by 0.4% year-on-year, and the demand for cement in the region was under great pressure.

Previously, Shandong Cement Association issued the Notice on Peak Staggering Production of Cement Clinker Enterprises in Shandong Province from August to October. The notice requires that during the period from 0:00 on August 1, 2023 to 24:00 on October 10, 2023, each clinker production line of each cement clinker enterprise will be stopped for 30 days. The output of clinker and cement in the whole province was affected and the output was reduced after the kiln was shut down.

It is expected that affected by this, the relationship between supply and demand of cement in Shandong Province will be slightly improved, coupled with the arrival of the traditional market peak season, which is expected to play a supporting role in stabilizing the price of cement in Shandong Province in the later period.