Local cement enterprises: It is expected that the cement sales in eastern Guangdong will further decline in 2024

2024-04-08 17:20:15

The person in charge of a core cement enterprise in eastern Guangdong predicts that the annual decline in cement sales in 2024 will be greater than that in the previous year.

According to a survey conducted by China Cement Network, the head of a core cement enterprise in eastern

Guangdong revealed that the number of government infrastructure projects and real estate projects in the market area served by the enterprise has decreased significantly. In the first quarter of 2024, the company's sales fell by about 25% compared with the same period last year, of which the sales of bulk cement fell by about 30%. Packaged cement declined by about 20%.

The person in charge predicted that the annual decline in cement sales in 2024 would be greater than that in the previous year.

He pointed out that the news of the suspension of infrastructure projects in 12 high-risk debt provinces has a deterrent effect on Guangdong Province. Although Guangdong is not among them, local governments and enterprises will be more cautious about investing in projects and focus more on resolving debt risks.

Speaking of cement prices , the person in charge said that although cement prices in eastern Guangdong and the Pearl River Delta region were relatively stable in the first quarter of 2024, this was largely due to the fact that the current Xijiang Lock had not fully restored its normal navigation capacity.

It is understood that the annual volume of foreign cement in Guangdong Province is about 25 million tons, of which Guangxi cement is the majority, and Xijiang is the key channel for Guangxi cement to be transported to the Guangdong market.

It is noteworthy that the person in charge of the enterprise also mentioned that the large increase in production capacity in Guangxi in 2023 had a great impact on the cement market in Guangdong. According to the data of China Cement Network, the new cement production capacity in Guangxi in 2023 was 3.255 million tons, ranking first in all provinces in the country.

In view of the fact that Guangxi is currently in the ranks of 12 provinces with high debt risk and limited infrastructure construction, the probability of cement demand has declined considerably this year, coupled with a large number of new production capacity put into operation in recent years, the problem of overcapacity has been further aggravated, and the probability will increase the export to the Guangdong market. It is expected that the market pressure in Guangdong this year will exceed that of last year.

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