Ma Weiping: The "Prisoner's Dilemma" of the Price War of Cement — — Under the Involution, No One Benefits

On November 15, the "2024 China Cement High Quality Development Forum and OCC Second Anti-Involution Forum" was held in Tongcheng, Anhui Province. Ma Weiping, Chairman

of OCC, made a keynote report on the game and cooperation between small and medium-sized enterprises and large enterprises. Ma Weiping introduced the "prisoner's dilemma" of the cement price war-no one benefits from the internal volume. The main causes of "prisoner's dilemma" in

cement price war are as follows:

1. Lack of trust and integrity. The break of long-term trust and cooperation, the price war and the involution of vicious competition;

2, the lack of restraint and incentive mechanism. The off-peak production is not coordinated, the implementation is not unified and discounted, the third-party monitoring, incentive and punishment mechanism is lacking, and the violation cost is low;

3. The enterprise is short-sighted and lacks pattern and foresight. Some enterprises only look at the immediate interests, regardless of the long-term damage to the industry ecology;

how to break this "prisoner's dilemma"?

Ma Weiping said that the demand for cement will continue to decline in the future, the market capacity will continue to compress, and the number of enterprises is bound to decrease. Cement industry must strengthen industry self-discipline, strengthen enterprise cooperation, large enterprises should stress the pattern, small and medium-sized enterprises should stress integrity. At the same time, enterprises should adhere to the blade introversion, constantly reduce costs and increase efficiency, control costs and win strategic initiative. Effectively control the supply, jointly shut down the kiln and limit production, and maintain reasonable profits.