On April 11, Shanshui Cement released a number of financial information for the first quarter. The company's operating income was about RMB 1.705 billion (the same below), a decrease of 46.42% compared with the same period last year; The loss attributable to shareholders of the company (net profit loss attributable to the parent company) was about 808 million yuan, an increase of 43.73% over the same period last year.
As one of the leading enterprises in Shandong cement industry, the performance of Shanshui Cement also reflects the "miserable" situation of Shandong cement industry to a large extent.
"The first quarter was very bad." A sales manager of Shanshui Cement told China Cement Network that the demand for cement in Shandong Province in the first quarter was only 6-8% of the same period last year, and that most of the "guaranteed delivery" projects promoted by the real estate industry last year to ensure the timely delivery of buildings had been completed. This year, the amount of new construction has been significantly reduced and the construction progress has been slow, all of which have resulted in the weakening of cement demand in Shandong.
More importantly, the impact of foreign cement is serious. "In 2023, a foreign cement enterprise hit the Shandong market with about 300000 tons of clinker, and in the first quarter of this year, the enterprise entered Shandong with more clinker than last year." With weak demand and external shocks, cement prices in Shandong Province fell by at least 100 yuan/ton in the first quarter compared with the same period last year.
According to China Cement Network, by the end of 2023, the annual production capacity of Shanshui cement clinker was 50.902 million tons, mainly distributed in Shandong, Liaoning, Shanxi, Inner Mongolia, Xinjiang and other places. Although Shanshui Cement can not fully represent the situation of other enterprises in Shandong region, the situation of falling volume and price makes Shandong cement industry face severe challenges in the first quarter of 2024.
