Zhejiang Cement Association on August 1
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2024 and the meeting of the Political Bureau of the Central Committee of the Communist Party of China on July 30 pointed out that "industry self-discipline should be strengthened to prevent vicious competition.". Strengthen the mechanism of survival of the fittest in the market and smooth the exit channels of backward and inefficient production capacity. With the continuous downturn of the market, the cement industry fell into a loss dilemma in the first half of the year, which is not conducive to the high-quality development of the industry. In order to implement the spirit of the Third Plenary Session of the 20th CPC Central Committee and the spirit of the recent meeting of the Political Bureau of the CPC Central Committee, and to prevent "involution" vicious competition, we propose:
First, grasp the general trend and strengthen confidence. At present, the insufficient demand for cement is the general trend of the economic cycle, which is irreversible in the short term. This is determined by the economic development cycle and is a problem in the process of development and transformation. We should not only take the initiative to deal with it, but also maintain strategic strength and firm confidence in development.
Second, control the supply side and determine production by sales. Organize production according to the principle of "meeting demand and balancing supply and demand". Strictly implement the policy of peak staggering production. It is proposed that enterprises should standardize production according to the approved production capacity and achieve "no reduction in quantity and profit" or "increase in quantity and profit" by strengthening supply-side management and control. Pursue quality management and effective development, reduce production and consumption intensity, and reduce ineffective supply.
Third, maintain strategic strength and prevent "involution" vicious competition. In the first half of the year, the price of cement production and sales declined in an all-round way, the market downturn and involution were obvious, the effect of industry self-discipline lasting for many years was weakened, and the market rose and fell sharply. It advocates maintaining strategic strength, purifying industry ecology, continuing to strengthen the effect of industry self-discipline, preventing and resisting "involution" vicious competition, strictly preventing illegal acts such as dumping and selling at low prices to disrupt the market, avoiding market trampling, and jointly creating a fair and stable market environment.
Fourth, leading enterprises should take the lead in setting an example and continue to play a leading role. Leading enterprises should play a leading role in reducing production, capacity, transformation, upgrading, high-quality development and maintaining market order, and continue to play a leading role in reform, innovation and fair competition.
Fifth, strengthen exchanges for mutual benefit and win-win results. The cement market in the Yangtze River Delta and even the whole country is interlaced with each other, and powerful enterprises are gathered, one is prosperous and one is damaged. The more in the market downturn period, the more we need to strengthen communication between leading enterprises, the more we need to strengthen communication with surrounding provinces and cities, constantly innovate cooperation modes, strengthen mutual trust, deepen cooperation, base ourselves on the long-term, face the future, and strive to achieve mutual benefit and win-win situation.
6. Accelerate the application of digital green technology and promote high-quality development. In accordance with the requirements of the Third Plenary Session of the CPC Central Committee on "carbon reduction, pollution reduction, green expansion and growth", we should speed up the application of digital and intelligent green technology, enhance the overall strength of enterprises in energy saving, environmental protection, quality and safety, carry out fair competition in accordance with the principles of "legalization, marketization and internationalization", eliminate the fittest, and enhance the overall level of high-quality development of the industry. To make due contributions to the stable and healthy development of the cement industry.
