Recently, it was reported that the price of cement in Guanzhong area of Shaanxi Province dropped sharply, from the beginning of July to the end of July, the price dropped by about 100 yuan/ton. China Cement Network contacted some people in the cement industry in Shaanxi and asked them about the situation.
Local cement enterprises reported to China Cement Network that the current ex-factory price of cement in Guanzhong area is indeed quite low, the average ex-factory price in the market is about 185 yuan/ton, and even some of the ex-factory price of cement transported to other places can reach about 170 yuan/ton. There are two main reasons for
such a low price:
First, the market demand is low and the contradiction between supply and demand is aggravated. Since
July, the high temperature and rainy weather in Shaanxi have been frequent, the construction conditions are not good, the real estate market is depressed and the infrastructure investment is difficult to form a strong support for the demand for cement, and the demand for cement is weak; On the supply side, there is no unified implementation of peak staggering production measures in Guanzhong area, enterprises are basically in a state of full storage and kiln shutdown, the shipment volume is about 20% lower than the same period last year, and the contradiction between supply and demand is severe.
Second, some enterprises grab the market and fight for share.
Cement industry feedback: "Guanzhong has two leading enterprises to fight.". Recently, the share war between the two enterprises triggered the follow-up competitive price reduction of enterprises, resulting in the price of cement in Guanzhong area almost "falling day by day". The price of cement has fallen from nearly 300 yuan/ton in mid-July to about 185 yuan/ton.
Guanzhong is the leader of Shaanxi's three major regions, namely, northern Shaanxi, Guanzhong and southern Shaanxi, and the economic center of Shaanxi Province. Most of the cement demand and clinker production capacity in Shaanxi Province are also concentrated in Guanzhong area. According to the statistics of China Cement Network, Shaanxi clinker production lines are mainly built in Tongchuan City, Baoji City, Weinan City and Xianyang City, and the clinker production capacity of the four cities accounts for about 78% of the province's total.