to resist "involution" vicious competition Cement enterprises:
The Political Bureau of the Central Committee of the Communist Party of China pointed out at its meeting on July 30 that "industry self-discipline should be strengthened to prevent involution vicious competition. Strengthen the mechanism of survival of the fittest in the market and smooth the exit channels of backward and inefficient production capacity. In recent years, the cement enterprises in Yunnan Province are facing difficulties in operation and the development of the industry is difficult. In order to implement the spirit of the meeting of the Political Bureau of the CPC Central Committee on July 30 and prevent "involution" vicious competition, we propose:
First, oppose unfair competition and resist "involution" vicious competition. Those who sell below the cost price are regarded as "involution" vicious competition in the cement industry. Market stability is the prerequisite for the industry to obtain reasonable profits. Strengthen the self-discipline of the cement industry, prevent and resist "involution" disorderly competition, low-price dumping and other acts harmful to the interests of the industry, promote the smooth operation of the market, orderly development, fair competition, and create a good environment for the development of the industry.
2. Strengthen industry self-discipline and strengthen communication and cooperation. Market disorderly competition damages not only the interests of enterprises, but also the interests of the industry. Enterprises should make full use of the association platform, actively communicate and enhance mutual trust, strengthen the effect of industry self-discipline, oppose unfair competition, safeguard the overall interests of the industry, and jointly create a fair, self-disciplined and healthy market environment.
3. Grasp peak staggering production and regulate the contradiction between supply and demand in the market. All cement enterprises shall comply with the requirements of "off-peak production" in YGX Raw Material (2024) No.20, organize production in strict accordance with the design approval capacity, implement the specific deployment of industry associations, carry out off-peak production, accept industry supervision, maintain the dynamic balance of market supply and demand, and effectively resolve the contradiction of excess capacity.
Fourth, strengthen the main responsibility and give full play to the leading role of the main enterprises. Faced with the changes in the industry situation, cement enterprises should rationally study and judge, strengthen industry communication, actively assume the leading responsibility of industry development, large enterprises should have a pattern, small enterprises should have a bottom line, and jointly maintain the industry ecology.
5. Accelerate the elimination of backward production capacity and promote the high-quality development of the industry. Shut down backward and inefficient production capacity whose energy consumption is higher than the benchmark level, whose emissions fail to meet the environmental protection requirements, and whose quality sampling is not up to standard. We will strictly enforce capacity replacement and prohibit the expansion of production capacity in the name of technological transformation; actively promote the docking of clinker from large and small kilns , and actively resolve the contradiction of regional overcapacity; promote technological upgrading and transformation, reduce carbon emissions, and promote high-quality development of the industry.
Yunnan Cement Association
August 6
, 2024