Cement Net Weekly Report: North China Concrete Market Demand Is Weak, Price Is Stable and Weak (7.22-7.26)

2024-07-26 14:32:16

Market demand is weak and prices are stable and weak.

China Cement Net Market Data Center News: The market demand is weak, and the price is stable and weak (more mixed prices in North China)

. This week, the Hebei region encountered the double challenges of heavy rainfall and air pollution, which seriously affected the progress of construction. The overall performance of market demand is weak, although there are key projects in some areas, but it is difficult to change the overall market downturn. In terms of price, although the cost of raw materials has risen, it is difficult to implement the price increase due to insufficient market demand. Concrete prices remained stable in most regions, but the new market demand was limited, some mixing stations were facing a tight supply of stock projects, and the overall price showed a stable and weak trend. Beijing and Tianjin are temporarily stable. The concrete market in

Shanxi has shown a certain weakness. Affected by the high temperature and rainy weather, the construction progress is limited to a certain extent, resulting in the weak growth of concrete demand. At the same time, the continuous adjustment of the real estate market and the decrease in the number of new projects have further aggravated the contradiction between supply and demand in the concrete market. In terms of price, the overall price of concrete in Shanxi remained stable, but there was a slight downward trend. The price fluctuation of raw materials such as cement, sand and gravel and the intensification of market competition have caused certain pressure on the cost of concrete. In order to maintain market share, some concrete enterprises have to adopt price reduction strategies. However, because the industry profit has been at a low level, the price reduction space is limited, so the price drop is not large. While the demand for concrete in

Inner Mongolia is relatively stable, it is also facing multiple challenges such as fierce market competition, fluctuations in raw material prices and environmental pressures.

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On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023.