Selected | Cement market price shocks; Zhang Xiaohua: "Rational capacity reduction" is an important strategy for the cement industry to get out of the predicament; the Ministry of Industry and Information Technology released the list of typical application scenarios and cases of industrial green microgrid in 2023

2024-01-04 13:09:03

Cement market price shocks; Zhang Xiaohua: "Rational capacity reduction" is an important strategy for the cement industry to get out of the predicament; the Ministry of Industry and Information Technology released the list of typical application scenarios and cases of industrial green microgrid in 2023.

< Market Overview & gt;

1

. Notice of price increase of bulk cement in the Pearl River Delta region of Guangdong ( click on the title, Leading enterprises

in the province notified Guangzhou, Dongguan, Shenzhen, Foshan, Zhongshan, Zhuhai, Jiangmen, Huizhou, Zhaoqing and other regions to raise the price of bulk cement by 15 yuan/ton. At present, although the short-term sales of some enterprises have increased, the overall decline compared with previous years, the actual implementation of the price increase remains to be observed.

2. The price of cement in central Guizhou has been loosened and declined

. Around New Year's Day, the transaction price of cement in some enterprises in Guiyang, Qiannan, Anshun and other regions has been loosened and declined by about 20-30 yuan/ton, while the rest of the industry has been on the sidelines for the time being, or is expected to follow up the downward adjustment.

3. December: The market fluctuates in a narrow range as demand draws to a close!

The national cement market will face a situation of weak supply and demand in January 2024. With the approaching of the Spring Festival, the demand for engineering projects has decreased, workers have holidays, and the downstream market demand is expected to further weaken. At the same time, the northern region is still in the process of peak staggering and kiln shutdown, and the southern region has also reduced the operation time of kiln grinding, resulting in the overall supply contraction. On the whole, the market will be mainly stable, and cement prices are expected to show a slightly weaker trend of shocks.

<; Today's Focus >;

1. Zhang Xiaohua: "Rational capacity reduction" is an important strategy for the cement industry to get out of the predicament (click the title to see the full text)

Zhang Xiaohua said that in the face of the aggravation of overcapacity, the cement industry should shift from "capacity reduction" to "capacity reduction". There are two ways to

cut overcapacity: one is to cut overcapacity competitively, that is, to eliminate part of the overcapacity through market competition when the demand is down, but this way of cutting overcapacity will damage the efficiency of the industry; the other is to cut overcapacity rationally, that is, to unify the understanding and make those who withdraw from overcapacity withdraw in return, which can not only improve the concentration, but also make the industry achieve good efficiency.

2. Ministry of Industry and Information Technology: Jining Conch and Gezhouba Yicheng Cement were selected into the list of typical application scenarios and cases of industrial green microgrid in 2023!

On January 2, the Ministry of Industry and Information Technology issued a notice on the list of typical application scenarios and cases of industrial green microgrid in 2023. In the building materials industry, the smart microgrid of Jining Conch Cement Co., Ltd. with zero external power purchase and the industrial green microgrid of Gezhouba Yicheng Cement Co., Ltd. were selected into the list of typical application scenarios and cases of industrial green microgrid in 2023.

3. The development

of CNBM's aggregate business The development of CNBM in the aggregate field was once rapid, but it has stagnated in recent years. The reasons include market saturation and fierce competition. Faced with such an environment, China's building materials choose to slow down the pace of capacity expansion, and carry out regional integration, optimize the allocation of resources and enhance competitiveness, in order to better respond to market changes. CNBM has always maintained a wise strategic vision and flexibility in developing its aggregates business.

4. Building materials industry in 2024, turning point or trouble? Nearly half of the 41 industrial sectors in

China declined in revenue in 2023, with building materials industry revenue falling by 7.4% and profits falling by 26%. The Work Program for Steady Growth of Building Materials Industry proposes that the growth target of industrial added value in 2024 is 4%. The cement industry is affected by the real estate adjustment, the demand is declining and the price is going down. The concrete market is easy to fall and difficult to rise, and the overall price of sand and gravel is weak. Looking forward to 2024, the building materials industry needs to seek a turning point, and cement, concrete and sand enterprises need to adjust their strategies according to market changes in order to seek development. Sharing Exchange and Building Materials Observation will analyze and interpret these issues in detail.

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Correlation

On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023.