Recently, the "Henan Building Materials Industry High Quality Development Conference and the Third Council of the Fifth Session of the Association" was successfully held, at which it was pointed out that the disparity in the time of off-peak kiln shutdown was the main reason for the instability of the market and the decline of cement prices .
The data show that the average shutdown days of 35 production lines of the two major cement groups in Henan Province are 249 days; the average shutdown days of the other 27 production lines are 205 days, which is 44 days less. Meanwhile, 11 production lines in the whole province are shut down for less than 200 days.
It is said that one of the main reasons for the instability of the market and the decline of cement prices is the large difference in kiln shutdown time, the imbalance of production capacity, the change of market share and the imbalance of business mentality among enterprises. China Cement Network data show that the price trend of Henan in 2024 is consistent with the national trend, but from the performance point of view, it is always lower than national level in the same period.
Industry insiders pointed out that the demand for cement in Henan will continue to run at a low level in 2025 , and it is predicted that the demand will decline by about 8%.
However, driven by the central economic policy, there are also some positive factors in the demand for cement in 2025.
1. Stabilize the property market. To stabilize the property market is to stabilize the cement market. The stabilization or even recovery of the real estate industry will have a positive impact on the cement building materials industry by continuing to push the real estate market to stop falling and stabilize, strengthening the implementation of urban villages and dilapidated housing renovation, and fully releasing the potential of rigid and improved housing demand.
2. Moderately loose monetary policy will bring great benefits to real estate, small and medium-sized financial institutions and local debt. The construction of government infrastructure projects, the construction of people's livelihood infrastructure, the transformation of villages in cities, and the promotion of urbanization will continue to benefit the demand for cement.
3. Promoting new urbanization and rural revitalization as a whole, Henan, as a province of population and agriculture, will certainly stimulate the demand for cement building materials.
At the same time, the meeting also proposed that the fundamental benefit to the country and the people is to stop kilns at the wrong peak and maintain the efficiency of the industry. It is hoped that we will unify our thinking, will and action, grasp the general situation and strengthen our confidence, strive to make substantial progress in the comprehensive regulation of the "involution" competition in the industry next year, and strive to achieve healthy, stable and high-quality development of the industry.
