According to the statistics of China Cement Network and Cement Big Data Research Institute, 8 new clinker production lines were put into operation from January to June 2023, involving Conch, Jidong, Shanshui, Shangfeng, Queshi and other cement enterprises.
In addition, China Cement Network also found that many cement enterprises are planning to build new line projects this year. For example, on July 3, Gansu Provincial Department of Industry and Information Technology issued the Announcement on the Merger and Relocation Plan of the Circular Economy Industrial Construction Project of Longnan Qilianshan Cement Co., Ltd., which mentioned that the construction project is a 5000t/d cement clinker production line.
In the past two years, the downward trend of cement demand has been highlighted, energy prices have been high, costs have been high for a long time, and corporate profits have been compressed. Last year, the profits of the cement industry evaporated seriously, falling by about 60% year on year. According to the statistics of China Cement Net, as of July 14, 2023, among the semi-annual reports of seven listed cement enterprises that have been announced, only the net profit of Tapai Group has increased compared with the same period last year; five enterprises such as China National Building Material Co., Ltd., Tianshan Stock Co., Ltd. and China Resources Cement Co., Ltd. have decreased compared with the same period last year; Fujian Cement has even suffered losses. It can be said that in the past two years, the cement industry has suffered a cold winter in the market, the market continues to be depressed, and the volume and price of the industry have fallen. Under the current situation, why are there still enterprises investing in the relocation of new lines?
Recently, China Cement Network learned from the exchanges with cement enterprises in the market that in the first half of this year, there were not many enterprises that really invested in the construction of new production lines. Most of the projects in the previous two years were completed and put into operation, or made new progress.
"Compared with the ten-year old line, the new cement production line is more competitive." A cement company said. In terms of production costs, the new line has lower costs in coal, electricity use, maintenance and other aspects than old production line. In the cement market before
2022, the relationship of competition and cooperation in the region is relatively good, and the good market environment conveys a message that there is still room for profit in the cement industry in the future, coupled with the reality of hundreds of billions of profits in the cement industry before, many enterprises are flocking to invest in the construction of new lines. Marx once mentioned in Das Kapital that "with 30% profit, people will take risks."
"I didn't expect the market demand to decline like this in the past two years!" A cement enterprise sighed. Over the past two years, the decline in market demand has completely exceeded the expectations of enterprises, and it is not a regional decline, but the national market has been seriously affected, affecting all cement enterprises, the national market has been squeezed, and the profits of enterprises have also declined sharply. Such a sharp decline in the industry situation has caught everyone by surprise. Under the increasingly severe
market situation, what impact will the commissioning of new production lines have on the whole cement industry?
To afore-mentioned problems, one personage inside course of study predicts: "New Old Company contradiction will aggravate, prospective market competition is inevitable." The problem of overcapacity in the
cement industry has always been very serious, and the commissioning of new production lines will undoubtedly aggravate the contradiction between supply and demand. "In the current market situation, new production capacity may accelerate the collapse of the existing market structure." The above industry insiders said that the old enterprises need to stabilize the market. When the market situation is good, the old enterprises can make appropriate concessions and develop together; but when the market situation is declining, the old enterprises can not make endless concessions, and ultimately there is no way to retreat.
For new production enterprises, they are not as affordable as the old enterprises. The construction capital in the early stage of the new line generally comes from the enterprise's self-support + financing, loans, etc. The pressure on all aspects of the enterprise is great, and there is no liquidity without production, which is fatal for the enterprise. In this regard, new enterprises would rather lose money, but also let the cement kiln run.
The industry insiders said that in the downturn of the market, a new round of competition seems inevitable, but this is also a screening, enterprises can only survive to share the final cake.
浙公网安备33010802003254号