Zheng Jianhui: The profit of the cement industry in the second half of the year is expected to be greatly improved compared with the same period last year.

March 15, the "2023 China Cement Industry Summit" hosted by China Cement Network was successfully held. Zheng Jianhui, chief analyst of China Cement Network Cement Big Data Research Institute, delivered a brilliant speech on the theme of "Cement Market in 2023: Restoring Consensus and Stabilizing the Overall Situation".

Zheng Jianhui said that this year, the industry should have confidence, take action and regain consensus. At present, the cement industry should reach a consensus on five points: the situation of overcapacity has become more severe; the pressure of rising costs has increased unprecedentedly; the marginal utility of supply-side reform is decreasing; the demand platform period is facing breaking and the market scale is shrinking; reasonable profit is the premise of transformation and upgrading.

Regarding the outlook for the cement market in 2023, he said that the fluctuation of cement demand will be narrowed throughout the year, and that the price of cement in the fourth quarter is expected to turn positive year on year, the cost of cement per ton is expected to fall again, and the profit of the whole industry is expected to improve. Zheng Jianhui believes that with the recovery of the economy, the cement industry will be able to achieve better industry efficiency, the cost of expenditure will tend to decrease, the cost of fuel is expected to shift downward, according to statistics, the proportion of co-disposal production line of cement kilns has increased to more than 25%, the use of alternative fuels will help to reduce costs, coupled with the price increase. In the second half of the year, industry profits will be greatly improved compared with the same period last year, and whether they can reach the range of 80-120 billion yuan depends on the initiative of enterprises.