Cement Economy 50 Forum | Ma Weiping: Cement Demand Drops by 1 Billion Tons in 10 Years, Foreign Mergers and Acquisitions Experience Should Be Used for Reference

2024-03-28 16:22:09

The whole industry should have a clear understanding that the demand for cement will certainly decline. Last year's demand is better than this year's, and this year's demand is better than next year's. Ten years later, the demand for cement is about 1/3 of the current level, about 1 billion tons.

On March 28, the "Cement Economy 50 People Forum" hosted by China Cement Network was successfully held in Hangzhou. The theme of the forum was: Understanding the Changing Situation, Solving the Difficult Situation and Seeking Development. Ma Weiping, former chairman and president

of Yaobai Special Cement Group Co., Ltd., put forward three views:

First, the whole industry should have a clear understanding that the demand for cement will certainly decline , last year's demand is better than this year's, this year's demand is better than next year's, and ten years later. Cement demand is about 1/3 of the current level, about 1 billion tons.

Second, on the supply side, production capacity has been increasing. Over the years, cement production capacity has been increasing, many backward production capacity has revived, most enterprises have expanded production capacity through technological transformation, and the imbalance between supply and demand of cement has become more and more serious. It also calls on the whole industry to prohibit new production capacity.

Third, what about the cement industry? One is paid withdrawal, but the specific operation is more difficult. The second is to learn from the experience of foreign countries. For example, the capacity utilization rate of more than 30 cement enterprises in Japan was only about 60%, but through the way of enterprise equity and merger, it eventually became five enterprises. In the context of declining demand, the capacity utilization rate reached 90%, and the industry profits were also increasing.

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Correlation

Near the end of the year, the domestic concrete market demand continued to weaken, the cost support declined compared with the previous period, and the price of concrete in many places declined steadily. From December 19 to December 25, the national concrete price index closed at 111.39 points, down 0.80% annually and 10.97% year-on-year.