Ningxia cement production fell 46.9% year-on-year in the first quarter, and will be worse in the future?

2024-04-25 13:47:41

Data show that from January to March 2024, Ningxia's cement output was 1.0661 million tons, a year-on-year decline of 46.9%, making it the province with the largest decline in cement production in China.

In mid-

April, China Cement Network Market Data Center said that cement prices in Yinchuan, Wuzhong and other areas of Ningxia had been raised, but the market demand was not good, and the final implementation was not optimistic.

 

In recent years, the price of cement in Ningxia has been declining all the way, and there is almost no rebound. A local cement enterprise in Ningxia said that the pressure doubled, and its cement ex-factory price remained around 180 yuan/ton for a long time, far below the cost price. Information from an insider of a cement enterprise in Jinchang,

Gansu, further confirmed the difficult situation of the cement market in Ningxia. He disclosed that the price of cement transported from Ningxia to Jinchang is generally around 260 yuan/ton. Based on the calculation of 0.2 yuan/ton per kilometer of cement transported by highway, the ex-factory price of Ningxia cement enterprises is about 180 yuan/ton, or even lower. A local cement enterprise

in Yinchuan said that there is not only price pressure, but also weak market demand in the region, which makes the development of local cement enterprises in trouble.

The company admitted that the overall situation of the national cement market is not good, and the Ningxia region is in a difficult situation. It is understood that since the beginning of 2024, Ningxia's market demand has been weak, and this year it has been listed as one of the 12 high-debt provinces, which has affected some key projects in the region, cement demand has declined again, and enterprise shipments are not good. According to the statistics of

China Cement Network Cement Big Data Research Institute, the cement output of Ningxia from January to March 2024 was 1.0661 million tons, with a year-on-year decline of 46.9%, making it the province with the largest decline in cement output in China.

According to the Notice on Staggered Peak Production in Some Key Industries in Winter and Spring of 2023-2024 issued by Ningxia, Cement clinker production enterprises in Ningxia will carry out peak staggering production from November 1, 2023 to March 31, 2024.

Since the restart of clinker production line in April, the inventory pressure of cement enterprises in Ningxia region has increased sharply. According to the big data of China Cement Network, since April, the ratio of cement storage capacity in Ningxia has continued to rise, rapidly returning to the high level of 75% before the kiln shutdown.

For the development of the market in the latter part of 2024, local enterprises in Ningxia generally believe that "prices and demand are difficult to rise". Facing the dilemma of the continuous decline of market demand and the increasing contradiction between supply and demand, cement enterprises in Ningxia region urgently need to explore a new way out. In the view of local cement enterprises in

Ningxia, the recovery of regional market demand is hopeless in the short term. At this stage, the most feasible plan is to expand the market scope, strictly control the cost of cement, and adopt the strategy of small profits and quick turnover, so as to stick to the end in the market competition.

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Correlation

Recently, the overall domestic demand has declined steadily, coupled with the weakening of local cost support, and the price of concrete has been stable and small. From November 14 to November 20, the national concrete price index closed at 112.35 points, down 0.13% annually and 10.08% year-on-year.