Recently, the price of cement in Xingtai and Handan areas of Hebei Province has fallen by about 15 yuan/ton. What is the reason for this price decline? A person from a cement enterprise
in Handan said in a survey conducted by China Cement Network that the current market demand is low, real estate as an important support for cement demand has been very weak this year, and the production and sales of enterprises have declined by at least 20% compared with the same period last year.
"The entry of Henan cement has a great impact on our market." The above-mentioned people also disclosed that foreign cement has increased the sales pressure of cement enterprises in Handan and Xingtai. In order to maintain market share, they were forced to lower cement prices to cope with the impact of foreign cement. A senior cement practitioner in Anyang, Henan, confirmed this statement 
in the survey of China Cement Network. He said that at present, the local market demand in Anyang is weak, and the inventory of local cement enterprises is high, so they are forced to expand their business scope and transport cement and clinker products to Hebei for sale.
According to its feedback, although Henan cement enterprises are in the state of off-peak kiln shutdown recently, the contradiction between supply and demand has eased slightly, and the price has warmed up. But in the first quarter of this year, the production and sales of cement enterprises were only about 40%, far less than the same period in previous years.
At the same time, he also mentioned that as the junction of Henan and Hebei, the cement enterprises in Anyang and Xinghan have always maintained a fierce market competition situation . When the market demand is not good, the two sides often use low-price strategy to dump cement and clinker to each other to compete for market share. 
According to the data, the annual clinker production capacity of Anyang region in Henan Province is about 6 million tons, and the geographical location is superior. It is about 200 kilometers away from Zhengzhou, the capital of Henan Province, and Shijiazhuang, the capital of Hebei Province. Under the background of Zhengzhou as a cement price depression in Henan, transporting cement and clinker to Hebei has become the best choice for Anyang cement enterprises; Xinghan area
in Hebei Province is a big clinker production city in the province, with an annual clinker production capacity of more than 20 million tons, which mainly bears the impact pressure of Henan cement from the north. The imbalance between supply and demand in the local market, the phenomenon of supply exceeding demand is prominent, and the fierce competition among cement enterprises results in the continuous low price of cement. It has become a cement price depression in Hebei Province.
Faced with the current situation of chaotic market competition and the continuing downturn of downstream demand, senior people in Anyang, Henan Province, stressed that cement enterprises should focus on energy saving and emission reduction, cost reduction and efficiency enhancement, and strive to shape a healthy market competition and cooperation relationship, which is the primary task to be solved urgently in the current cement industry.
