Hubei, Shanghai Push Up; Trillion National Debt Attacks, Cement Stocks Rise; China National Building Material Group Adjusts Leadership of China National Building Material Institute

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1. Notice of cement price increase in Shiyan, Hubei (click on the title to view the full text)

Since the 18th, Shiyan, Yichang and other regions in Hubei have successively notified the increase of cement price by 50 yuan/ton. At present, the general range of implementation is about 30 yuan/ton.

2. The price of cement in Shanghai was pushed up

again on the 24th. Some major manufacturers in Shanghai notified that the price of high-standard cement was raised by 20 yuan/ton, and the specific implementation remains to be observed.

3. [Special Topic] Operation Analysis and Outlook

of Concrete Industry in the Third Quarter of 2023 The third quarter of 2023 was in the off-season of demand, and the price of concrete continued to fall with the raw materials. By the end of September, the National Concrete Price Index (CONCPI) closed at 125.65 points, down 10.65% from the beginning of the year, down 10.76% year-on-year, and the output of commercial concrete enterprises above the scale fell by about 13.7% year-on-year.

4. Cement Market Operation Analysis and Market Outlook

for the First Three Quarters of 2023 In the first three quarters of 2023, affected by the continuous adjustment of real estate, the demand for cement was weak and the industry was in a downturn. In the first quarter, the downstream resumption of work was still good, and the overall demand was better than same period. In the second and third quarters, "the peak season was not strong, and the off-season was weaker", the demand weakened significantly, coupled with the fierce market competition, the cement price continued to decline. Cement production hit a 13-year low in the first three quarters, and despite the downward shift in the focus of coal prices, the profits of the cement industry still shrank sharply. Looking forward to the fourth quarter, we believe that the demand of cement industry may be less than that of the same period. Due to the weak demand and the high inventory level of enterprises, there are many obstacles to price rise, and the average price may still decline. Throughout the year, cement demand will face greater downward pressure, and the decline in industry efficiency is still large.

<; Today's Focus >;

On October 25, cement stocks were among the top gainers in early trading. As of press release, Jidong Cement hit the limit. Tianshan shares rose 3.36%, Conch Cement rose 4.78%, Huaxin Cement rose 6.8%, Ningxia Building Materials rose 6.2%, Tapai Group rose 4.8%, Fujian Cement rose 4.9%. Many cement stocks such as Jianfeng Group and Shangfeng Cement are also rising. With the strengthening of infrastructure construction, it will undoubtedly benefit the demand for cement.

2. China Building Material Group adjusted the leadership

of China Building Material Institute on October 23, 2023, China Building Material Institute held a cadre meeting to announce the decision of China Building Material Group to adjust the leadership of China Building Material Institute. At the meeting, Comrade Chang Zhangli read out the decision of the Party Committee of the Group on the appointment and removal of relevant leadership positions of China Building Materials Institute: Comrade Zhi Xiao was appointed as the member and secretary of the Party Committee of China Building Materials Research Institute Co., Ltd., and Comrade Ma Zhenzhu was removed from the post of secretary and member of the Party Committee of China Building Materials Research Institute Co., Ltd.

Wang Jianchao: The demand for cement has entered the downward channel

. Wang Jianchao believes that the relationship between supply and demand is the most important factor to improve the efficiency of enterprises. However, in the context of such a serious overcapacity, the total energy consumption or carbon emissions should be controlled. As a rigid indicator, it is a good way to control cement production capacity, but he personally believes that the total carbon emission control is the best choice to cater to the national policy and achieve capacity removal.

4. Excavation of 940 million tons of sand in Dongting Lake! Nearly 70 billion fiscal revenue!

Recently, Hunan Hanshou Jinda Sandstone Co., Ltd. issued a river sand mining announcement. Since October 21, 2023, the Hanshou mining area of Dongting Lake in Hunan Province has been officially exploited. In addition, other areas of Dongting Lake have been exploited before, and the new round of planned 942.69 million tons of river sand in Hunan Province has been speeded up, which is expected to bring nearly 70 billion yuan of fiscal revenue.