first half of 2024, affected by the continuous bottoming of real estate investment and the slowdown of infrastructure investment, the demand for cement continued to decline, the contradiction between supply and demand further intensified, coupled with the fierce market competition and the low price of cement, the industry as a whole showed the characteristics of "shrinking demand, fierce competition, low price and operating losses". In the first quarter, the downstream resumption of work was poor, and the price went down all the way. After entering the second quarter, the peak season was not strong, and the demand continued to weaken. However, the industry's awareness of self-help was strengthened, self-discipline and peak staggering were strengthened, and the cement price stabilized and rebounded. In the first half of the year, cement production hit a new low since 2011, and the industry suffered a rare loss when both volume and price fell. Looking forward to the second half of 2024, we believe that the demand for cement will improve compared with the first half of the year, and the price will continue to rebound. However, under the constraints of weak demand and serious overcapacity, the repair of cement price is limited. Throughout the year, cement demand will face greater downward pressure, and the decline in industry efficiency will expand.
