In 2022, domestic cement demand fell by 10.5%, and industry profits fell by about 60%.
As one of the core markets in southwest China, where will Sichuan cement market go in 2023? Recently, China Cement Network had a detailed exchange with a regional leading enterprise in Sichuan.
"Market demand still has great potential, but the stability of the market needs the joint efforts of regional enterprises," said the head of the above-mentioned enterprises.
It is understood that although the real estate industry has a greater drag on the demand for cement, with the development of the Chengdu-Chongqing economic belt, the pace of infrastructure construction such as high-speed rail and high-speed rail is accelerating, and the demand for cement in Sichuan is supported in the short term. However, in recent years, cement enterprises in the region have increased production and transformation, resulting in increased pressure on the supply side. With the disappearance of market increments, the problem of overcapacity in the industry has been gradually enlarged.
The above-mentioned enterprises said that from the perspective of the cyclical development of the cement industry, the future decline in cement demand is inevitable. In this context, the cement industry needs to think about the way out from both short-term and long-term perspectives.
In the short term, cement demand will remain stable with a slight decline. Cement industry should establish the mentality of seeking common ground while reserving differences, strictly self-discipline, maintain the relative stability of the market through market competition and cooperation, and avoid the serious impact of disorderly price war on the development of the industry.
In the long run, the downward trend of cement demand is unavoidable. In the face of this reality, on the one hand, the cement industry should strictly limit the launch of new production capacity to curb the momentum of overcapacity; on the other hand, through market-oriented and policy-oriented means, some enterprises with weak market competitiveness that do not meet the requirements of national energy conservation and environmental protection should be forced to withdraw from the market.
The company believes that in the long run, it is unavoidable for cement demand to enter the downward channel, but in the short run, it is equally important to maintain reasonable profits through industry self-discipline, especially under the background of green and low-carbon development, industry enterprises are facing great pressure of industrial upgrading. Reasonable profit is a necessary prerequisite for the development of the industry.
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