Many Places Push Up Cement Prices Again, can Last Week of "Silver Ten" Be Seized?

2023-10-27 09:39:05

In September, cement prices were driven up by costs in some areas, but the foundation for price increases was weak under weak demand. Since October, demand recovery in many places has been limited, and cement prices have risen slightly. Enterprises around the country continue to notify the increase in cement prices, but the implementation is different. The market demand and sales volume are general, the enterprise inventory is high, and the implementation of the price increase remains to be observed.

In September, driven by cost, cement prices were pushed up in large areas in some areas, but the foundation of price increase was not solid under weak demand, and it was difficult to fully implement in practice. At the beginning of September, the National Cement Price Index (CEMPI) was 108.06 points, closing at 106.59 points at the end of the month, down 2.23% from the previous month and 29.9% from the previous year.

From the regional point of view, the demand of the six regions is weak and the relationship between supply and demand is still weak. Generally speaking, the weakness of terminal demand is hard to change, and the expectation of Jinjiu market has failed. After

entering October, the demand in many places continued to recover, but the overall situation was still weak, the shipment volume of enterprises was low, while the coal price was high, the cement cost pressure increased, and some areas continued to push up the cement price, but the implementation situation varied from place to place.

As of October 24, the National Cement Price Index (CEMPI) was 108.65 points, up 2.12 points from 106.53 points at the beginning of the month, up only 2%, down 29.71% year-on-year. Overall, cement prices have risen slightly since October due to the limited recovery of downstream demand.

Recently, cement enterprises in many places have continued to raise cement prices. Whether this round of prices can be successfully implemented and whether cement enterprises can seize the opportunity of the last week of "Silver Ten" remains to be observed. According to market feedback

in Guangdong

, the price of bulk cement in the Pearl River Delta region of Guangdong continued to fall in the early stage, and enterprises operated at a loss. In order to increase sales, leading enterprises in the province slightly raised the price of bulk cement by 10 yuan/ton in the middle of the year, and continued to notify the price of bulk cement by 20 yuan/ton on the 26th. At present, the market demand and sales are general, the inventory of enterprises is still at a high level, and the implementation of this round of price increases remains to be observed.

Zhejiang

According to market feedback, the weather in Zhejiang is mostly fine recently, the construction progress of some construction sites is accelerated, the market demand has improved compared with the previous period, coupled with the increase of cement prices in the surrounding areas of central and southern Zhejiang, enterprises have a strong willingness to raise prices. In order to improve profitability, some major manufacturers in Zhejiang continued to push up the price of all kinds of cement by 20 yuan/ton in Hangzhou, Jiaxing, Huzhou and Shaoxing on the 22nd, and the specific implementation remains to be observed. According to the feedback from the market

in Jiangsu

, the weather in Jiangsu is still acceptable in recent days, the market demand has rebounded from the previous period, and enterprises have a strong willingness to raise prices. In order to improve profitability, some major manufacturers in Nanjing, Suzhou, Wuxi, Changzhou, Nantong and other places in Jiangsu have notified to raise the price of high-standard cement by 20 yuan/ton since the 22nd, and the specific implementation remains to be observed. Cement prices in the surrounding areas of central and northern Jiangsu are expected to follow up a few days later. According to the feedback from the market

in Anhui

, the market demand in Anhui has recovered slightly since the middle of the year, and the overall sales volume has increased compared with the previous period. In addition, driven by the increase in cement prices in the surrounding areas of Jiangsu and Zhejiang, enterprises have a strong desire to raise prices. Cement prices, 22-23 Wuhu, Xuancheng, Tongling, Ma'anshan and other major manufacturers notice to raise the price of high-standard cement 20 yuan/ton, the specific implementation remains to be observed. According to the feedback from the

Shanghai

market, the weather in Shanghai has been fine in recent days, coupled with the general increase in cement prices in coal and surrounding markets, enterprises have a strong willingness to raise prices. In order to improve profitability, some major manufacturers in Shanghai notified an increase of 20 yuan/ton in the price of high-standard cement on the 24th, and the specific implementation remains to be observed.

According to market feedback, the weather in Henan is mostly fine in recent days, and the market demand is relatively stable, but with the rising prices of raw materials such as coal, the production costs of enterprises increase. In order to improve profitability, after some major manufacturers in Henan notified an increase of 30 yuan/ton in cement price on the 19th, they tried to push up the cement price by 30 yuan/ton again on the 25th, and the specific implementation remains to be observed. From the overall market feedback, on the eve of the current round of push up, the actual transaction prices of some enterprises in the province showed signs of loosening and declining by 10-20 yuan/ton, and some markets even fell back to the pre-rise level. According to the feedback from the market

in Hubei

, the price of raw materials has risen recently, the cost of cement production has risen, the pressure of enterprise operation is greater, and the willingness to raise prices is strong. In order to increase profits, Hubei Jingmen, Jingzhou and other regions have notified an increase in cement prices by 50 yuan/ton since the 23rd. At present, the general range of implementation is about 30 yuan/ton, and the implementation remains to be observed. According to market feedback

in Hunan

, the price of raw materials has risen recently, the cost of cement production has risen, some enterprises are in a state of loss, the pressure of enterprise operation is greater, and the willingness to raise prices is strong. In order to increase profits, various regions in Hunan have been notified to raise the price of cement by 20 yuan/ton since the 26th, and the implementation of this increase remains to be observed. According to the market feedback

in Sichuan

, the price of raw materials has risen, the cost of cement production has risen, and the price increase in the peripheral market has driven the strong willingness of local enterprises to raise prices. In order to improve profitability, leading enterprises in Sichuan Chengdu-Demian, Zizinei, Aba, Leyamei, Ganzi, Liangshan and other regions notified to raise the cement price by 30-60 yuan/ton from 21 to 23, and the implementation remains to be observed.

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Correlation

In September, cement prices were driven up by costs in some areas, but the foundation for price increases was weak under weak demand. Since October, demand recovery in many places has been limited, and cement prices have risen slightly. Enterprises around the country continue to notify the increase in cement prices, but the implementation is different. The market demand and sales volume are general, the enterprise inventory is high, and the implementation of the price increase remains to be observed.

2023-10-27 09:39:05