A few days ago, China Cement Network published a contribution from the industry, "Why can't Conch Cement occupy market share?" 。
This article holds that in the past few years, Conch Cement has not participated too much in new production lines, and those enterprises that have exploited the loopholes of capacity replacement and have a high proportion of new production lines are not qualified to ask Conch Cement to "give up" market share and advance and retreat together. Moreover, it is reasonable and legitimate for enterprises to occupy market share through fair competition, which has the strength and strength to "grab" share, and conforms to the law of market economy. When the industry is in the imminent situation of capacity removal, the market share of Conch Cement is legitimate and reasonable, which is beyond reproach. After the publication of
this article, there was an upsurge of discussion in the industry about whether conch should grab share or not. Those who
support Conch believe that it is necessary to recognize the reality of serious overcapacity in the current cement industry. Staggered peak production is like drinking poison to quench thirst, and its effectiveness is declining. Only market competition can save the cement industry. Pain and elimination are unavoidable. Only by letting the market play a decisive role in the allocation of resources can the cement industry develop steadily. Those who
oppose Conch believe that the downward trend of cement demand cannot be reversed, and it will take a long time to reduce production capacity through price competition. It is difficult to ensure that the speed of capacity reduction is faster than the speed of demand decline, and the situation of overcapacity in the cement industry will continue. Conch cement "grabs" share, causing industry panic and price war, which not only makes the profits of conch and the whole industry shrink dramatically, but also hinders the green, intelligent and low-carbon upgrading of the whole industry.
The neutral view is that conch cement can occupy the market share, but it should be carried out under the same conditions. For example, since the implementation of peak staggering and kiln shutdown in the whole industry, conch has not been implemented in many places (not strictly implemented according to regulations), and it is unreasonable to occupy market share in the case of its own productivity. The market encourages free competition, but it requires all enterprises to stand on the same starting line, instead of taking advantage of not abiding by the rules and holding high the banner to grab share.
Should Conch Cement grab the share? What is your point of view? Feel free to leave a comment.
