It has been the most beautiful spring in March and April, but the mood of Zhejiang cement enterprises is still heavy.
"Demand is not good, and cement prices are even worse." When investigating the Zhejiang market, China Cement Network learned that since the beginning of the year, the recovery progress of cement market demand in different regions of Zhejiang Province has been uneven, the overall performance is relatively weak, and the cement price has also shown a continuous downward trend.
A number of cement enterprises reported to China Cement Network that cement sales in the first quarter of this year fell by 20% -30% year-on-year. Even conch can't help feeling the chill of the market. "Although our sales in the first quarter were flat year-on-year, sales in March declined year-on-year." A subsidiary of Conch said.
In addition, although Zhejiang Province has not been affected by the policy of suspending key projects in 12 high-debt provinces, the number of key projects in the province has not increased significantly, which has limited pulling effect on the cement market. Faced with the sluggish market demand, in order to stabilize the market share, cement enterprises have to adjust their strategies and adopt the way of price reduction and promotion to "protect the share", which is also one of the reasons for the further decline of cement prices in the first quarter. In
2023, the best demand performance in the Yangtze River Delta region was Shanghai, while the annual average price of cement was Zhejiang > Shanghai > Anhui > Jiangsu, but both fell to the lowest level in five years. In 2024, if the price of cement in Zhejiang is difficult to stabilize, how can the price of cement in the whole Yangtze River Delta and even in East China be supported? The severe situation in
East China can also be seen in the annual report of Conch Cement. In 2023, among the major regions of Conch Cement, the gross profit margin in the eastern region (from product sales) was the lowest, and the business income declined by a large margin.
Faced with such a situation, "too much volume, money is not easy to earn." Zhejiang's cement enterprises have no choice but to sigh.
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!
