China Cement Network Market Data Center news, according to market feedback, the recent rainy weather, weak market demand, coupled with the continuous impact of foreign low-cost cement, market competition intensified. In order to maintain market share, leading enterprises in Zhanjiang and Maoming areas of Guangdong Province continued to reduce cement prices by 20-30 yuan/ton on June 25, following a continuous reduction in cement prices in the middle of the year.
Recently, China Cement Network surveyed the Guangdong market, local enterprises said that the market demand is low, and the intensification of enterprise competition is the core factor leading to the current price downturn.
According to its introduction, affected by the poor situation of the real estate industry this year, the demand for cement in Guangdong has declined by 2-3%, and the contradiction between supply and demand has intensified. At present, the ex-factory price of P.O42.5 bulk cement in mainstream cement enterprises is only about 300 yuan/ton. In terms of foreign cement, since this year, the new production capacity put into operation in Guangxi last year has increased its production capacity in order to ensure cash flow and seize market share, which has had a great impact on the Guangdong market.
According to the above-mentioned enterprises, the current price of Guangxi cement transported to the Pearl River Delta market is only about 290 yuan/ton, and the export price of some Guangxi cement enterprises has been as low as 210 yuan/ton, or even as low as 190 yuan/ton, which is seriously lower than the cost price. The grim market situation is evident.
On the demand side, capital problems are worsening the living environment of the cement industry. The above-mentioned enterprises said that due to the insufficient willingness of the people to buy houses and the poor sales of real estate, from the engineering side to the concrete mixing station to the cement dealer and so on, they are facing serious difficulties in repayment, which restricts the investment and construction of new projects. A large
local concrete mixing station, with an average daily sales of more than 20000 tons in previous years, has contracted to 6000-7000 tons this year. A large cement dealer in Guangdong said that considering the current industry situation and economic environment, this year will adopt a contraction strategy to reduce the scale of sales.
"In the past, when the market was good, the mixing station would have higher requirements for cement brand, supply guarantee and so on, but now the market situation is grim, the requirements of the mixing station in this respect have also been reduced, for the mixing station, it is a little bit to save," said the dealer.
In addition, local industry sources said that the cement industry in Guangdong plans to stop kilns for at least 60 days this year. However, according to the current market situation, 60 days of off-peak time may be difficult to have a fundamental impact on the contradiction between supply and demand of cement in Guangdong.
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