When it comes to the areas that have shown the greatest determination and action in pushing up cement prices this year, Henan Province is undoubtedly in the forefront.
According to market feedback, the price of cement in Henan is basically at a low level, the pressure of enterprise operation is high, and the willingness to raise prices is strong. Since July 11, some major ex-factory prices in the province have begun to recover and raise the price of high-standard cement by about 30 yuan/ton.
"Falling and rising, rising and falling, falling and rising again, not to mention the results, Henan Province's efforts and courage are still admirable." Industry insiders said that since this year, Henan cement prices have been pushed up in many rounds, but it is always difficult to maintain. At present, Henan cement prices are running at a low ebb, coupled with high hidden costs such as environmental protection management, resulting in serious losses and great operating pressure.
According to the data of China Cement Network, in June 2024, the average kiln opening rate in Henan Province reached 11.62% , which was 51.43 percentage points lower than last month. The average shutdown time of 66 cement kilns in Henan Province was 26.52 days , an increase of 15.07 days compared with the previous month. In June, Henan Province had a monthly clinker production capacity of 11.052 million tons. The total output of clinker was 1,430,600 tons, representing a month-on-month decrease of 80.86%, and the clinker capacity utilization rate was 12.94%. Data source of productivity utilization rate
of clinker in Henan Province in June
2024: cement big data (https://data.ccement.com/)
With the increasing number of shutdown days, the productivity utilization rate of clinker is only 12.94%. Cement prices still fell in June. All kinds of data also show that the cement market in Henan is facing severe challenges and urgent situation.
Local industry veterans have said that Henan cement enterprises should recognize the reality of declining demand and abandon the business strategy of market share first. Under
such circumstances, although Henan Province has tried to raise cement prices again, the actual effect of this measure is still worrying and the implementation is full of uncertainty in view of the weak market situation.
