Cement prices continued to fall in June! How to Deal with the Weaker Off-season

Last Friday (June 9), the National Cement Price Index (CEMPI) closed at 123.22 points, down 1.8% from the previous month. Year-on-year decline of 19.

, the overall weakness of the large region continued on Saturday." The decline in the southern region is larger. The price of cement dropped by 2.78% due to heavy rainfall in central and southern China; the price of cement dropped by 2.34% due to the impact of high school entrance examination and rain in East China; the price of cement dropped by 2.15% due to the decline in sales volume in southwest China; the price of cement dropped by 1.38% compared with last week due to the weak demand in northeast China; the price of cement dropped by 0.06% compared with last week due to the overall stability in northwest China; In some areas of North China, kilns are stopped at the wrong peak.

Table 1: Changes

in Price Indices of Cement in Six Regions Source: Cement Big Data (https://data.ccement.com/)

Specifically:

East China

Zhejiang: Market demand fell to 5-6% in a short period of time." Recently, the price of cement in Hangzhou-Jiaxing-Huzhou-Shaoxing area has dropped by 10-15 yuan/ton.

Shanghai: or affected by the price reduction in the surrounding areas, the cement price in Shanghai has been reduced by 20-30 yuan/ton in recent days.

Anhui: Rain weather increased, the overall market demand performance is not good, 7 days from Wuhu, Ma'anshan and other places to reduce cement prices by 10 yuan/ton.

Fujian: High inventory pressure, coupled with the impact of low price cement in Sanming, since the beginning of June, Xiamen, Quanzhou, Zhangzhou and Longyan in southern Fujian have been reduced by 10-20 yuan/ton, while Fuzhou has been slightly lower by 5-10 yuan/ton.

Shandong: Demand continues to weaken, market competition is fierce, 1-5 days in Jining, Zaozhuang, Linyi, Tai'an, Zibo and other places to reduce cement prices by 20-30 yuan/ton.

Central and southern China

Hunan: sluggish demand and sales." The market competition is fierce, the cement price continues to fall, and the cement price in Shaoyang area was slightly reduced by 10 yuan/ton in the first ten days.

Guangdong: Affected by the rainfall and the college entrance examination, the market demand has further shrunk. Recently, the price of cement in the Pearl River Delta region has been reduced by 20-30 yuan/ton, and the price of cement in Meizhou and Chaoshan in eastern Guangdong has been slightly reduced by 10-15 yuan/ton.

Guangxi: about 20 yuan/ton in Nanning, and 10-20 yuan/ton in Baise.

Hainan: Affected by continuous rainfall, the market demand and sales volume declined, coupled with the entry of low-priced cement, the price of cement in Hainan was reduced by 20 yuan/ton from 7 to 9 days, and the price of some clinker was reduced by 10 yuan/ton simultaneously.

Henan: The demand is sluggish, and the inventory of enterprises is generally at a high level. Since the beginning of the month, the price of cement has been lowered by 10-20 yuan/ton in many places.

Southwest

Sichuan: The overall market demand is weak, and the cement quotation of individual enterprises in Chengdu-Deyang-Mianyang region is slightly reduced by 10-20 yuan/ton.".

Guizhou: Due to frequent rainy weather and insufficient market demand and sales volume, the cement price in Tongren, Qiannan and Qiandongnan regions was lowered by 20 yuan/ton at the beginning of the month.

Yunnan: Some enterprises shipped less than half of the normal, and the transaction price of cement in Dali area dropped to about 20 yuan/ton at the beginning of the month.

Northwest China

Gansu: At the beginning of this month, the price of cement in Lanbai and other places was raised by 20 yuan/ton, and now it tends to be stable after rising.".

Qinghai: The construction of projects in the region is in good condition, the inventory is running at a low level, and the cement quotation is temporarily stable.

Xinjiang: The weather has improved and the construction site has gradually returned to normal. Recently, the price of cement has been raised by 40 yuan/ton in Bozhou, Xinjiang.

Ningxia: Cement prices are stable.

North China

Beijing and Tianjin: The enterprise inventory is still at a high level, the probability of price increase is not high, and the follow-up cement price may be mainly to maintain stability.".

Shanxi: Most areas are in the state of off-peak production, affected by factors such as high school entrance examination and summer harvest, the market demand is low, the operation of mixing stations is poor, and the quotations of enterprises around the country are mainly stable.

Northeast

Aftermarket: The industry has officially entered the off-season, the market competition is fierce, and the enterprise inventory is generally under pressure at a high level." Cement prices are expected to continue to decline in the near future.

At present, the cement industry is in a downturn and the situation of overcapacity is still grim. Under the situation of imbalance between supply and demand, a single industrial structure has been unable to support enterprises based on the current complex market situation. Energy saving and carbon reduction, cost reduction and efficiency enhancement, industrial transformation and upgrading, optimization of asset allocation and enhancement of core competitiveness can maintain the healthy and long-term development of the cement industry. On July 6-7,

2023, China Cement Network will hold a " meeting in Chongqing. After the meeting, we will visit the energy-saving demonstration line of Chongqing Cement Preheater "Level 5 to Level 6" and the energy-saving project of steam driven fan.