From February 26 to 27, China Resources Building Materials Technology Co., Ltd. held the 2024 Working Conference of "Opening a New Start and Opening a New Bureau" in Guangzhou, Guangdong Province. At the meeting, President Jing Shiqing pointed out that in 2024, Huarun Building Material Science and Technology should take the market strategy of " grabbing share, keeping the bottom line, optimizing structure and improving status " as the core to enhance the status of the industry.
Cement market is a cake of limited size, you eat more, I will eat less, so in the case of China Resources Cement to "grab share", which cement enterprises may break out "conflict"? In June
2003, China Resources' first new dry-process clinker production line (Hongshuihe Line 1) was put into operation in China Resources Hongshuihe Company. Since then, China Resources has made great progress in the cement market by relying on the two nodes of Guangdong and Guangxi and laying out along the Xijiang River. According to the third quarter performance announcement of China Resources Cement in 2023, Guangdong, Guangxi and Fujian accounted for 83.4% of the total cement sales of China Resources, including 44.5% in Guangdong, 26.3% in Guangxi and 12.6% in Fujian.
Therefore, Guangdong, Guangxi and Fujian will become the strategic places for China Resources to compete for this share.
According to the list of Top 100 Cement Clinker Producers in China in 2023, the production capacity of Conch Cement accounted for 20.57% and that of China Resources Building Materials Technology accounted for 17.55% in Guangdong market; the production capacity of China Resources Building Materials Technology accounted for 24.95% and that of Conch Cement accounted for 14.99% in Guangxi market; Fujian market, Fujian cement accounted for 16.67%, China Resources Building Materials Technology accounted for 12.5%.
However, although Conch Cement has no production line in Fujian, it has always been the core participant in Fujian market relying on convenient waterway transportation , with more than 10 million tons of cement imported into Fujian market every year. In 2023 alone, Conch Cement imported about 12 million tons of cement to the Fujian market, accounting for about 14.93% of the total cement output of Fujian Province (80.39 million tons).
In addition, Conch Cement took over Fuzhou Taiwan Cement and Yangyu Wharf in August 2023, and added three grinding stations with an annual output of 1 million tons in Fuzhou market. Not only that, Conch Cement will also plan to build two cement clinker production lines with a daily output of 5000 tons in Youxi, Sanming. Youxi County is backed by Sanming and faces Fuzhou, occupying the dominant position of Sanming's important railway station.
Therefore, Fujian market is also the focus area of conch.
If China Resources Cement is "determined" to seize market share in Guangdong, Guangxi and Fujian, Conch Cement will be the number one rival of China Resources. It is worth mentioning that in September 2023, a fierce price war broke out between China Resources Cement and Conch Cement in the Guangdong market, triggering a price melee in the regional market, and the price of cement in the Pearl River Delta once fell below the cost line.
Faced with the severe and complex external environment and unprecedented pressure of production and operation, can China Resources grasp the initiative in the process of striving for a higher market share? Let's wait and see.
Cement industry has serious overcapacity, the impact of peak staggering production on the supply side has declined significantly, the "competition and cooperation relationship" formed over the years has broken down, and the pressure of industry operation has doubled. On March 28-29, China Cement Network will hold the " 13th China Cement Industry Summit and TOP100 Award Ceremony " in Hangzhou, during which awards will be given to top 100 cement and supplier enterprises, and experts and scholars will be invited. China Railway and other construction units jointly discuss the new development trend of the cement industry in the future, and work together to create the future!
