Outage methods include: first, low-price competition forces high-cost enterprises to passively shut down due to losses; second, active shutdown through off-peak production to maintain industry profits.
Zhang Xiaohua predicts that cement demand will drop by about 10% in 2024, and the utilization rate of production capacity will drop to about 50%, and will decline year by year. In response, about half of the cement industry's production capacity needs to be shut down. Outage methods include: first, low-price competition forces high-cost enterprises to passively shut down due to losses; second, active shutdown through off-peak production to maintain industry profits.
CEMPI
115.47
-0.25 -0.22%
CONCPI
113.17
0 0%
CLKPI
116.97
+0.19 +0.16%
SPPI
47.80
-0.13 -0.27%
MORPI
84.00
-0.15 -0.18%
This article is selected from Song Zhiping's book "Reform Heart Road", which describes his motivation and effect of restructuring cement in those years, and has been published by China Cement Network. Recently, there has been a call for restructuring and mergers and acquisitions in the cement industry. Reviewing this old article may have the effect of reviewing the old and learning the new, encouraging the industry to promote a new round of restructuring, and solving the persistent problems of the industry.
