Inner Mongolia, Ningxia low price cement impact! How to maintain the stability of Hexi cement market in Gansu?

According to the China Cement Network Market Data Center, in recent days, the demand for cement in Hexi region has declined, the inventory has been running at a high level, and the price of cement in some enterprises has been loosened and declined due to the impact of foreign low-price cement. What is the specific situation? China Cement Network has exchanged with many people in the Hexi area of Gansu Province.

During the exchange, it was learned that the loosening of cement prices in Hexi area of Gansu Province was mainly due to the obvious decline in local cement demand and the impact of foreign cement.

Some major projects have been suspended, and the demand for cement has declined significantly

. It is understood that compared with last year, some major projects in Gansu have been affected because it has become one of the 12 provinces with high debt. This year, the demand for cement has declined significantly, and the market competition has been fierce. Especially in Jiuquan area, there are many grinding stations and production lines, and the competition is relatively fierce. The price of cement in the urban area is dozens of times different from that in the west of Jiuquan. A person in charge of a cement enterprise

in Jiuquan said that due to the suspension of new start-up projects, sales of enterprises this year fell by about 50% compared with the same period last year. A person from a cement enterprise

in Zhangye said, "Affected by the shutdown of major projects, the cement sales of enterprises fell by 20% year on year this year."

"This year's cement demand is worse than last year's, and the sales volume of enterprises in the first quarter is about 20000 tons less.". The main reason is that the nearby high-speed rail project has entered the final stage, and the planned new high-speed rail has been shelved. A person from a cement enterprise in Wuwei revealed that the demand for cement will be worse next. Relevant person in charge of a cement enterprise

in Jinchang said that up to now, cement sales this year have decreased by 120000 tons compared with last year, mainly because the market is not very good and there are few new start-up projects. How to maintain the stability of Hexi cement market under the impact of low price cement

in Inner Mongolia and Ningxia?

For a long time, the distribution of clinker production lines in Hexi area of Gansu Province is less, the demand is acceptable, and the cement price is relatively high. In contrast to Wuhai and Alashan in Inner Mongolia, the contradiction between supply and demand in Ningxia is sharp, and the price of cement is very low. Especially last year, Inner Mongolia was also listed as a high debt province, the demand for cement shrank, and cement enterprises had to export to expand their market share.

According to the big data forecast of China Cement Network, cement production in Ningxia in the first quarter fell by more than 55% year-on-year, cement production in Inner Mongolia in the first quarter fell by 28% year-on-year, and cement production in Gansu in the first quarter fell by 11% year-on-year.

"Compared with Ningxia and Inner Mongolia, the demand for cement in Hexi, Gansu Province is fairly good, and the price here is higher, so it is often impacted by the cement in these two places." An industry insider in Wuwei spoke bluntly. According to the feedback from a cement enterprise

in Jinchang, the price of cement transported from Ningxia is only about 260 yuan/ton, while the freight from Ningxia is about 100 yuan, which is equivalent to the ex-factory price of cement in Ningxia as low as 160 yuan/ton. "The production cost of our enterprises is about 250 yuan per ton, so we can't afford a price war with them." The person said.

In the current situation of shrinking local market demand and the impact of foreign low-price cement, how can local cement enterprises stabilize the market? Many people have said that in the case of declining demand for cement, they hope to stabilize supply and maintain prices and benefits through off-peak production. It is reported that the Gansu region plans to start peak staggering in May, and it is not known when it will be implemented.