Serious decline in demand, foreign cement impact, Jiangsu cement prices continue to decline

According to China Cement Market Data Center, in the traditional off-season of July, affected by high temperature and rain, the market demand is still low, the shipment volume of enterprises is weak, the inventory is high, and the market competition is fierce.

In order to maintain the off-season market share, some major manufacturers in Yancheng, Yangzhou, Taizhou and other places in Jiangsu continued to notify the reduction of cement prices by about 10-20 yuan/ton around July 6-8. Cement prices in Lianyungang, Suqian and other surrounding places in northern Jiangsu may also show signs of reduction.

Local cement companies say demand for cement has fallen sharply due to the slump in the real estate sector. In addition, shipping in Jiangsu is developed, and the impact of foreign cement is also very serious, which further increases the pressure on the market. According to the data of Jiangsu Statistical Bureau, from January to May this year, the investment in real estate development in Jiangsu Province decreased by 1.9% compared with the same period last year, and the new construction area of commercial housing decreased by 38.7% compared with the same period last year, while the sales area of commercial housing was basically flat. There is a close relationship between

real estate and cement demand. As an important raw material for real estate construction, the change of cement demand is directly affected by the real estate market. The current downturn in the real estate industry has led to a sharp decline in market demand for cement, which is undoubtedly a huge challenge for cement enterprises.

Although cement enterprises have lowered prices to maintain market share, the market is still difficult to be effectively activated. This is not only because of the downturn in the real estate industry, but also because of pressure on the supply side. The problem of oversupply in China's cement industry has always existed, especially in Jiangsu Province, where the market competition is extremely fierce due to the development of shipping and the influx of foreign cement. Therefore, simple price adjustment can not solve the problem of cement market, and it needs to be adjusted comprehensively from the aspects of supply-demand relationship and industrial structure optimization.