"The current market construction rate is not high and the price competition is fierce." A cement company in Baoding told China Cement Network.
According to the feedback from the market, in order to increase the sales volume, some major enterprises in Baoding, Hebei have recently lowered the cement price by about 20 yuan/ton. According to the survey of China Cement Network, most construction sites and mixing stations in Baoding area of Hebei Province have not yet started, the recovery of market demand is slow, the shipment volume of enterprises is low, and the inventory is still at a medium and high level. & nbsp; & nbsp
; "At present, the shipment volume of enterprises is only 1-2%, and this price reduction is mainly to clear inventory and occupy the market.". "Baoding, a cement enterprise responsible person said.". It is understood that the current temperature in the northern region is low, the lowest temperature in Hebei is still below zero every day, and the construction cost is high. And now Baoding area is still in the heating season, according to environmental requirements, most enterprises are still in the stage of off-peak shutdown, it is expected that the market will not fully start until mid-March.
Demand recovers slowly, and the market is not optimistic in the first half of the year.
It is understood that in January 2023, 5 homesteads (including comprehensive land) were launched in Baoding, and 8 were transacted; the planned construction area was 255,600 m ², down 55.2% year-on-year. Local enterprises feedback that the real estate market in Baoding is cold, and some large housing enterprises are also facing the situation of capital chain rupture. The person in charge of the above-mentioned
enterprise said that the current demand for downstream cement mainly comes from the old city reconstruction project of Baoding City and the construction of Xiongan New Area. It is understood that in January this year, Hebei Province released a list of key construction projects in 2023. Among them, there are 50 key projects in Baoding, with an estimated annual investment of 15.34 billion yuan, and 22 projects in Xiongan New Area, with an estimated annual investment of 17.79 billion yuan. "
Infrastructure investment is good news, but the time required for project landing will be in the second half of the year at the earliest." A cement enterprise in Baoding believes that.
In addition, cement from Tangshan and Inner Mongolia has recently entered the Baoding and Xiongan markets. "When Tangshan Cement enters Xiongan, even with the transportation cost of 70-80 yuan/ton, it still has a certain price advantage," local cement companies told China Cement. In order to ensure market share and increase sales, some major local enterprises have lowered cement prices. Over
capacity, lack of demand, low cement prices.. In order to cope with the current market situation, the person in charge of a cement enterprise in Baoding said that it was necessary to reduce costs and increase efficiency, increase income and reduce expenditure. The person in charge of the enterprise believes that the current market is not good, the production cost of the enterprise is high, only through its own management to control the cost, better than average cost price of the industry can survive.
Attention: China Cement Network will hold "2023 China Cement Industry Summit" in Hangzhou on March 15-16, when the national cement and related industry colleagues will gather together to discuss the future trend of the cement market. Stay tuned.
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