this year, the cement market along the Yangtze River has been in turmoil. In order to seize the share, some cement enterprises have fought a price war, and even the ex-factory price of cement has reached more than 180 yuan/ton. The whole market is in a mess.
However, there is a piece of pure land in the chaos-Jiangxi, whose cement prices have remained relatively stable since the year, why? According to the survey of China Cement Network, there are three main reasons why the cement price in Jiangxi can remain stable:
First, the industry concentration is relatively high.
According to the top 100 list of China's cement clinker production capacity in 2023, the top five cement clinker production capacity in Jiangxi Province, Jiangxi Cement, Jiangxi Evergreen, Conch Cement, Asian Cement and Red Lion Cement , accounted for 87% of the total clinker production capacity in Jiangxi Province, with a high degree of industry concentration. It is conducive to standardizing market competition and stabilizing the industry situation.
Second, industry self-discipline and self-improvement.
It is reported that in the first quarter of 2024, Jiangxi originally planned to stop production for 40 days, which was extended to 50 days in actual operation, significantly reducing the pressure on the supply side of the market.
Under the background of the downward demand for cement, the cement industry in Jiangxi has strengthened self-discipline and resolutely implemented the policy of peak staggering production to promote the smooth operation and orderly development of the market.
Third, the internal market is relatively closed. The terrain of
Jiangxi is similar to a "pocket" opening to the north, with a plain in the middle, surrounded by mountains on three sides and facing the river on one side. In addition to the convenient water transportation, superior traffic conditions and vulnerability to the impact of foreign cement in northern Jiangxi, most areas are affected by the terrain, and the market is relatively "safe", forming a natural market protection mechanism to a certain extent.
However, some people in the cement industry in Jiangxi reported to China Cement Network that although the cement market in Jiangxi is generally stable at present, the pressure is still great. They appealed to colleagues in the industry to be self-disciplined and self-reliant, and jointly safeguard the healthy development of the cement market.
