According to China Cement Network Market Data Center, on March 19-22, major manufacturers in Lhasa, Shannan, Xigaze and other places notified an increase in cement prices by 20-30 yuan/ton.
It is understood that the price rise is mainly due to the gradual and slight recovery of market demand in Tibet, while in the first quarter, Tibet is in the off-peak kiln shutdown, cement clinker inventory is low, coupled with the increase in electricity costs of enterprises.
"Our company has risen by 20 yuan/ton, and the market is gradually recovering, and it is expected that it will not fully recover until the end of April and the beginning of May." A person from a cement enterprise in Lhasa said, however, whether the price can be implemented is still on the sidelines. An industry insider
in Shannan said that in the first quarter of Tibet, except for the co-disposal of cement kilns by individual manufacturers, all of them stopped production at the wrong peak. In the first quarter, all enterprises shut down the kiln, the cement inventory is low, and it is expected that the kiln will be opened in April.
In addition, a few days ago, the People's Government of the Tibet Autonomous Region issued the Notice on Adjusting the Standard of Peak and Valley Electricity Price Difference for Large Industries in Tibet, which adjusted the peak and valley electricity price difference for large industries. According to the latest regulations, the standard of peak-valley electricity price difference in Tibet's large industries has been adjusted to 0.524 yuan/kWh, up from the previous 0.45 yuan/kWh. Cement is a big electricity consumer, and the increase in electricity price means that the production cost of enterprises will also increase.
Talking about the future cement market, some local cement enterprises are cautiously optimistic about the demand for cement in Tibet in the next three years. An industry insider said that fixed assets investment in Tibet is expected to increase by about 13% in 2024 compared with 2023, and the market demand is better. We are confident about 2024. However, this also needs to be based on the strict implementation of peak staggering production by local cement enterprises.
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!
