Recently, China Communications Construction announced that it had signed a framework agreement with Qilianshan Cement Group to purchase products, establishing an annual trading cap of RMB 400 million.
According to the announcement, the continuing connected transactions between China Communications Construction and Qilianshan Cement Group are based on the business needs of both parties and market conditions. The annual caps for this transaction are determined based on the current market price of cement and cement products (330 yuan/ton ~ 360 yuan/ton) and the construction plan of China Communications Construction in 2024 and the demand for related products.
It is forecast that China Communications Construction will need about 1.1 million tons of cement and cement products during the year, and Qilianshan Cement Group's current production capacity can meet this demand. The annual cap also takes into account the possibility of unexpected demand growth, providing a buffer for both sides.
