Weekly Report of Cement Network: The rainy season in North China affects the construction, the market demand is low, and the price is weak and stable (8.5-8.9)

2024-08-09 16:25:44

The rainy season in North China affects construction, market demand is low and prices are weak and stable.

China Cement Market Data Center News: The rainy season in North China affects construction, the market demand is low, and the price is weak and stable (more mixed prices in North China)

. This week, the rainy season has significantly affected the construction activities in Beijing-Tianjin-Hebei region. Resulting in poor performance in both demand and shipments. Although some cement enterprises in central and southern Hebei have tried to raise prices, the market reaction is cold and the price adjustment has not been realized. The concrete industry is facing the double pressure of declining capacity utilization rate and decreasing shipment volume. In the absence of key project support and scarcity of new projects, the market as a whole presents off-season characteristics. In the coming week, if weather conditions do not improve, the market is expected to continue to face downward pressure. The market demand for concrete in

Shanxi is relatively weak. With some large-scale infrastructure projects gradually entering the final stage, the demand for concrete has decreased significantly, resulting in a tense relationship between supply and demand in the market, and the shipment volume of the whole market is not optimistic enough. The concrete market in Inner Mongolia is also facing similar challenges, the market demand continues to be depressed, although the price has not fluctuated significantly, but the overall activity of the market is not good.

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Correlation

On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023.