At present, Shanxi cement industry is facing severe challenges. According to the data, Shanxi's cement output in 2023 was 46.6056 million tons, with a year-on-year decline of 2.9%; in terms of price, since the beginning of last year, it has almost been declining all the way, with a cumulative decline of more than 150 yuan/ton by the end of last year, and the living environment of local enterprises is poor.
According to the data of China Cement Network, the total production capacity of cement clinker in Shanxi Province in 2023 was 58.0506 million tons. Among them , Tangshan Jidong Cement Co., Ltd., Shandong Shanshui Cement Group Co., Ltd. and Beijing Jinyu Group Co., Ltd. are the top three in the province, and their total annual clinker production capacity accounts for about 40% of the total in the province.
In the downward period of the market, the trend of regional core cement group enterprises has attracted much attention. On March 5, Shanshui Group Shanxi Operating Zone and Jinyu Jidong Cement Shanxi Region held a symposium on high-quality development of the industry, which may have a positive impact on the Shanxi cement market.
The two sides focused on the current market situation, industry ecological construction, peak staggering production and other topics for in-depth exchanges and reached consensus. Wang Chao, general manager of Shanxi Operating Zone
of Shanshui Group, stressed in the discussion that under the background of serious overcapacity and overall downward demand in the industry, boosting market confidence, strictly implementing peak staggering production and enhancing industry self-discipline are important magic weapons to maintain the healthy development of the industry with high quality.
Jidong Cement Yangquan-Taiyuan Regional Secretary Yan Haifeng highly agreed with Wang Chao's speech. The meeting mentioned that we should normalize peak staggering production, resolve the contradiction of excess capacity, give full play to the leading, coordinating and service role of large enterprises, strengthen self-discipline, increase mutual trust, stabilize ecology, maintain market order and promote the steady development of the industry with high quality.
In the next step, the two sides will take deepening exchanges and seeking common development as the starting point, work together to unify their understanding, work side by side to strengthen their responsibilities, work together to enhance market confidence, stagger peak production and industry ecology, and constantly carry out in-depth, multi-dimensional and wide-ranging exchanges to achieve win-win results. Under
the current situation, the interaction between Shanshui Cement and BBMG Jidong plays an important role in boosting market confidence, stabilizing cement prices and enhancing industry self-discipline in Shanxi Province. It also has a positive significance in resolving the contradiction between supply and demand in Shanxi Province, achieving win-win situation for enterprises and promoting the healthy development of the industry with high quality.
However, what needs to be pointed out is that even if large enterprises play a leading role and actively achieve win-win situation in the industry, the Shanxi market still needs to face many challenges:
First, the total production capacity of other cement enterprises in Shanxi Province accounts for about 60% of the province's total, which should not be underestimated. How to promote these enterprises to unify their understanding, participate in industry self-discipline and maintain a good market order is a major problem.
Secondly, in view of the strong linkage of the cement market, if the cement price in Shanxi stabilizes, will the surrounding market prices have a chain reaction? Impact on Shanxi market? How should cement enterprises in the province deal with it? This is also a problem that needs to be studied urgently.
Thirdly, as the core factor affecting the cement industry, the market demand will become increasingly fragile in the current downward trend of the overall market demand.
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. China Cement Network helps the upstream and downstream enterprises in the cement industry chain to strengthen cooperation and cooperation from the perspectives of supply, demand, macro-economy, technological progress and industrial upgrading, and jointly promote the cement industry to get out of the predicament and face the new cycle.
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!
