China Cement Network Market Data Center received feedback from the market that the recent rise in raw material prices in Hunan has led to rising production costs, coupled with the general shutdown of kilns in Hunan Province in August. Affected by this, many enterprises in Hunan have been notified to raise the price of cement by 50 yuan/ton since the 12th.
"Prices are rising, but the situation is different in different regions." Local cement enterprises in Hunan said that the price of cement has been raised in many places in the province, but due to the combined effects of internal and external factors, it remains to be seen how much it will be implemented and how long it will last.
Internal factors mainly lie in the increasing difficulty of collaboration among enterprises. "Some groups actually did not rise in place, they came down first, and then rose together." This misplaced price adjustment has led to a large decline in sales of other enterprises after the price increase, which has affected the stability of the market.
The external competitive pressure mainly comes from the market dynamics of the surrounding provinces. Taking the Hubei market as an example , this year, the synergy effect of Hubei is not good, the price has been raised several times, and the actual implementation is not satisfactory , which has a great impact on the local price situation in Hunan.
Like most provinces in the country, the situation of cement industry in Hunan is extremely grim this year, and some kiln line enterprises have not yet opened kilns , which not only affects the normal operation of enterprises, but also leads to serious losses. In this case, some enterprises have started a series of measures to reduce costs, such as salary cuts and layoffs.
