Industry Summit | Zhu Xiaoyun: 2023 Sand and Stone Demand Is Steady, Price Center May Still Move Down Slightly

On March 16, at the "2023 China Cement Industry Summit" hosted by China Cement Network, Zhu Xiaoyun, senior analyst of China Cement Network Cement Big Data Research Institute, shared the operation analysis and future outlook of the sand and gravel industry in 2022. In terms of

sand and gravel demand, Zhu Xiaoyun said that the demand for sand and gravel decreased significantly in 2022. The performance of key markets in the north is general, with the coastal areas along the Yangtze River mainly falling, and the middle and lower reaches of the Yangtze River declining significantly. In 2022, the consumption of sand and gravel in Shanghai construction decreased by more than 20% compared with the same period last year. The average resource reserves of

individual mining rights have increased, and Guangdong has become the province with the largest total reserves. In 2022, the resource reserves of Guangdong's mining rights increased by more than 300% year on year, reaching more than 5 billion tons.

For the future outlook of the sand and gravel industry, Zhu Xiaoyun expects that the demand in 2023 will be stable year-on-year, and the price center will still move down slightly. In this regard, she put forward three suggestions:

1, the problem of overcapacity is becoming increasingly serious, for the popular areas along the Yangtze River and coastal areas, enterprises should be more cautious in taking mines.

2. Prices have entered the downward range, and the era of high gross profit may be over, so more attention should be paid to cost-side control.

3. Although the demand for sand and gravel at the infrastructure end still maintains a strong momentum, many infrastructure projects use their own sand and gravel, which is difficult to boost the market. Sand and gravel production enterprises should calmly look at the recovery of sand and gravel demand.