"If overcapacity is not controlled, the cement industry will never have peace." On March 14, Li Xinyue, chairman of Fangcheng Wanbei Cement (Group) Co., Ltd., pointed out at the "50 people in the cement economy" forum that the main contradiction in the current cement industry is still overcapacity.
Li Xinyue said that Henan's cement overcapacity is extremely serious, with an excess rate of about 50%. In 2022, Henan will stagger the peak and shut down the kiln for nearly 180 days, accounting for almost half of the whole year. However, under the premise of such serious overcapacity, there are still five new production lines to be put into operation in Henan in 2023, which shows that it is urgent to curb the growth of production capacity.
In addition, price disorder has also seriously affected the sound development of the cement industry. In 2022, the price notice of many cement enterprises in Henan was "rising and falling in the morning and evening", with great changes, and even in order to seize market share , the price of cement fell below the cost price and was still on sale.
In this regard, Li Xinyue believes that price is the most basic factor to promote the sustainable development of the industry, blindly "working hard" on the price will only destroy the market environment, we must establish the concept of price standard, maintain the price in order to promote the sustainable development of the industry.