Recently, Fujian Building Materials Industry Association issued a notice on the work arrangement of peak staggering in July. The notice requires that all cement clinker production lines in Fujian Province (regardless of the target market) must participate in peak staggering production. On the premise of meeting the market supply, the kiln was shut down for 12 days in July.
The document clearly requires that enterprises should participate in peak staggering production regardless of their target market, which fully reflects Fujian's firm determination to strengthen peak staggering production mechanism and increase kiln shutdown efforts.
However, many people in the industry have expressed their concern: "For those enterprises whose target market is Fujian, but who do not have clinker production lines in the Fujian region, this peak staggering requirement is not binding on them."
It is reported that there are about 15 million tons of foreign cement in Fujian Province every year, of which 12 million tons are conch cement , accounting for about 15% of the province's market share, which has a huge impact on the cement supply market in Fujian Province.
For a long time, Conch Cement, relying on the T-shaped strategy, has absolute advantages in production, transportation and market, and firmly controls the initiative of Fujian cement market. Conch has a cost of about 30 yuan/ton lower than the industry level, including transportation costs, the cement imported into Fujian by Conch is cheaper than that of local enterprises in Fujian, so Conch can quickly occupy the market share of Fujian cement with high-quality and low-cost cement clinker.
In view of the serious impact of foreign cement such as conch, it was mentioned in the work arrangement of peak staggering production issued by Fujian Province in 2024 that during the peak staggering period, the amount of cement clinker entering Fujian outside the province must be controlled by 50% of the normal year, and the amount of each brand entering Fujian should be counted by conch cement. Report to Fujian Building Materials Industry Association before the 10th of each month, and the Secretariat, together with the regional leaders, will find the Maritime Bureau and other departments for verification.
However, after careful study, it is difficult to directly restrict enterprises in other provinces by a single paper document, and how to achieve a clear quantity control of cement enterprises in Fujian? If foreign cement suddenly increases inventory on the eve of peak staggering and releases shocks to the market during peak staggering, will the document not exist in name only?
Back to the initial discussion point of the article, for cement enterprises in Fujian Province, no matter where their products are sold, they need to follow the arrangement of off-peak production. This can not help but make people think that cement enterprises in Fujian Province are suspected of self-destruction, which not only breaks the "spear" of self-attack, but also destroys the "shield" of defending the regional market.
