2023 cement profit of 3.8 billion yuan! How can Xinjiang cement achieve adverse growth?

2024-04-08 10:48:21

Why can Xinjiang stabilize the market and achieve counter-trend growth in 2023?

Recently, Lv Zhijian, president of Xinjiang Building Materials Industry Association, said in an exchange with China Cement Network that the cement situation in Xinjiang was good in 2023 , with cement production increasing by more than 20% year on year, and the cement profit in Xinjiang was 3.8 billion yuan, accounting for about 12% of the national cement profit. Speaking of 2024, he is still optimistic about the cement market in 2024.

It is understood that the situation of overcapacity of cement clinker in Xinjiang is the same as that in most parts of the country. Why can Xinjiang stabilize the market and achieve counter-trend growth in 2023?

It is known that the demand for cement in

1、 has increased considerably, and the growth rate of fixed investment in Xinjiang reached 12.4% in 2023, which is faster than that in 2022. Affected by this, Xinjiang's cement output reached 48.1 million tons in 2023, an increase of 25% over the same period last year, making it the second largest province in China's cement output growth in 2023. The main targets for Xinjiang's economic and social development in

2024 are as follows: GDP growth of about 6.5%; industrial added value above designated size growth of about 8%; and fixed asset investment growth of about 10%. "This will greatly drive the demand for cement, so the overall demand in 2024 should be guaranteed." Lv Zhijian said. High

concentration of production capacity of

2、 The concentration of production capacity of the top ten cement enterprises in Xinjiang has reached more than 70%, and the concentration of production capacity of the top three cement enterprises has exceeded 50%. In addition, the wide geographical area and the scattered distribution of enterprises are conducive to the stability of the competition and cooperation relationship. According to the big data of

China Cement Network, Xinjiang currently has an annual cement clinker production capacity of 68.107 million tons and a cement production capacity of about 100 million tons. The concentration of regional production capacity is relatively high, and the production capacity of TOP2 enterprises accounts for nearly 50%, and the distribution of enterprises is relatively uniform. The vast regional area

of

3、 not only limits the flow of cement in the region, but also increases the difficulty of external cement inflow, which makes the regional markets in Xinjiang and Xinjiang relatively closed, which is conducive to the maintenance of prices. It is known that the peak staggering production

of

4、 in Xinjiang cement industry is mainly carried out in different areas, with the shortest stop of 180 days and the usual peak staggering of more than 200 days. Lv Zhijian said that Xinjiang was the first to practice and explore peak staggering production, and has been making unremitting efforts for eight years, gradually and accurately advancing. Up to now, the whole industry has benefited from off-peak production. In the case of serious overcapacity, the whole industry has developed steadily and healthily, without any loss-making enterprises, which ensures that the government has tax revenue, enterprises have profits, employees have stable income and employment is guaranteed. It has made important contributions to the overall goal of social stability and long-term stability in Xinjiang.


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Correlation

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.