Cement Net Weekly Report: Concrete Market Demand Is Sluggish, Local Prices Fall Under Pressure (8.26-8.30)

2024-08-30 17:31:27

Most regions in China are affected by capital factors, lack of construction increment downstream, no improvement in concrete market demand, and downward pressure on local quotations. From August 22 to August 28, the national concrete price index closed at 113.68 points, down 0.42% annually and 11.12% year-on-year.

From August 22 to August 28, the national concrete price index closed at 113.68 points, down 0.42% annually and 11.12% year-on-year. From the perspective of different regions, the price of concrete in Beijing and Tianjin has been reduced by 20 yuan/m3; the price of concrete in Hainan, Guangdong and Hubei has been reduced by 5-20 yuan/m3; the price of concrete in other provinces and cities in China has remained stable.

Figure 1: Trend

of Concrete Price Index in the Past Year Data Source: Cement Big Data (https://data.ccement.com/)

1. From the perspective of regional market conditions

, from August 22 to August 28, The concrete price index in North China fell by 2.48% on a month-on-month basis; the concrete price index in central and southern China continued to fall, with a slight decrease of 0.72% on a month-on-month basis; the concrete price index in other regions in China remained stable.

Table 1: Comparison

of Concrete Price Indices in Six Regions Data Source: Cement Big Data (https://data.ccement.com/)

The concrete market in different regions is as follows:

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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.