According to the data center of China Cement Network, the price of cement in Fujian has been raised by 20 yuan/ton since October 18th.
Previously, in early September, Fujian had raised the price of cement by 30 yuan/ton, but due to insufficient demand in the downstream section, the final implementation was 15-20 yuan/ton. The main reason for the increase in cement prices in
Fujian is the high price of coal, local cement manufacturers said that the recent price of coal in Fujian is around 1200 yuan/ton. The rise in coal prices has increased the cost pressure of cement enterprises, and the enterprises have a strong willingness to raise prices.
So how about the implementation of the cement price increase?
According to the tracking situation of China Cement Network, the confidence of local cement enterprises is not good. A local cement enterprise in Fujian said, "If some enterprises are not afraid of losses and prices are not raised, the market situation will not be clear.". Another cement company said bluntly, "It's only the first day now, and the trend behind is not clear."
From the supply side, the weather in Fujian has been fine recently, which is good for construction, and the shipments of cement manufacturers have increased. In addition, the implementation of off-peak kiln shutdown in October is better, the pressure of cement inventory is reduced, and the high coal price causes the cost of cement to rise. With the combination of various factors, the local cement price has a basis for rising.
However, from the demand side, since this year, the continued downturn in demand has made enterprises in the region generally lack confidence, and some enterprises are still on the sidelines. In the case of poor confidence, there is limited room for regional cement prices to rise, and the specific implementation remains to be observed.
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