8.31 Cement Morning Post: Huge Losses of Cement Enterprises; "Interesting Talk on Supplementing Production Capacity"; Conch Cement Share Increases and Profit Decreases

2024-08-31 07:01:24

What is happening in the cement industry?

1、 Cement Network Video: The situation is grim! Many cement enterprises have huge losses!

In the first half of this year, the cement industry was affected by multiple factors, with an overall loss of about 1.2 billion yuan and an 11% decline in sales. Many cement enterprises suffered serious losses, of which Tianshan shares had a net loss of 3.414 billion yuan and Shanshui Cement had a loss of 531 million yuan. Even the industry leader Conch Cement, net profit fell 48.56% year on year. Industry development needs to strengthen self-discipline, avoid vicious competition, eliminate backward production capacity, and promote high-quality mergers and acquisitions.

2、 Cement Net Exclusive: Interesting Talk on Completing Production Capacity

This paper discusses some practical operation problems in the process of capacity replacement in cement clinker industry. The key contents mentioned include: according to the Measures for the Implementation of Capacity Replacement in the Cement and Glass Industry, the production capacity shall be accurately calculated to avoid waste of production capacity; the actual production capacity shall be compared with the registered production capacity, and the smaller one shall be taken as the basis for replacement; the production capacity of some production lines exceeds the design value due to technical improvement, and the difference shall be made up; There are some complex requirements and restrictions in the process of replacement, such as the restrictions on the transfer of production capacity, the requirements on the closure and demolition, etc. Finally, it is pointed out that excessive replacement may lead to the loss of future production capacity indicators.

3、 Comments of Cement Net: The market share of Conch Cement has increased steadily, and the profit attributable to the parent company has continued to decline!

In the first half of 2024, the operating income of Conch Cement decreased by 30.44% to 45.566 billion yuan, and the net profit of Conch Cement decreased by 48.56% to 3.326 billion yuan. Faced with the decline in cement demand caused by the real estate downturn and the reduction of infrastructure investment, the company's market share has steadily increased to about 12.5%, and its profitability is under pressure but leading in the industry. The company actively expands the industrial chain, aggregate and commercial mixing business to achieve revenue growth, overseas business revenue has also increased. The financial situation remains stable, the market shows signs of warming up in the second half of the year, and the business performance is expected to improve on a month-on-month basis.

4、 Cement enterprises in Fujian Province staggered the peak for 15 days in September

Fujian Building Materials Industry Association issued a notice on August 29, requiring cement enterprises in the province to stagger peak production for 15 days in September in view of the current market situation. At the same time, it is expected that the peak will be staggered for 15 days every month from October to December, and the specific arrangements will be notified separately. The original operating rules are still valid and will not be repeated.

5、 Cement Net News: The price of cement in Henan has recovered.

The weather in Henan has improved recently, the market demand has rebounded, and a 20-day plan to stop kilns at the wrong peak is about to be implemented. In order to increase profits, since the 29th, some major manufacturers announced a 50 yuan/ton increase in cement prices, the actual implementation of the increase in about 20-30 yuan/ton. However, due to the low delivery rate of the terminal market, it remains to be seen whether the price increase can actually be implemented.

6、 Cement Weekly: Cement prices in the Pearl River Delta market in central and southern China continue to decline (8.26-8.30)

The price of cement in the Pearl River Delta in central and southern China continued to decline, and the market demand in Guangdong recovered, but due to the impact of low-price cement in the periphery, the sales pressure of local enterprises increased and the inventory was high. The market demand in Guangxi is weak, and the cement price is stable and weak. The price in Hubei remained low and the market was weak and stable; the price in Hunan remained stable after rising, and the market demand recovered and improved; the market demand in Henan improved, and some manufacturers raised the cement price. At the same time, it reported the industrial aid activities to Xizang, the digital transformation of cement enterprises, the ultra-low emission transformation plan of cement enterprises in Guangdong Province, the friendly exchanges between Yufeng Group and Suriname, and the management measures of major projects in Hainan Province.

7、 Weekly Report of Cement Net: Chongqing in Southwest China Notified to Raise Cement Price by 40-50 yuan/ton (8.26-8.30)

The cement market price in southwest China has been adjusted. The price of cement in Chongqing has been raised by 40-50 yuan/ton since the 30th, but the implementation still needs to be observed. Cement prices in many places in Yunnan began to fall. The price of cement has been raised by 20 yuan/ton since the 26th Xizang, and the specific implementation remains to be observed. Due to the high temperature weather, the market demand in Sichuan has declined, and the price of cement in some areas has dropped slightly. In addition, Taiwan Cement Chongqing Plant held family day activities, Red Lion Cement announced a clinker project, Chengdu Bureau of Economy and Information Technology carried out cement enterprise inspection, cement industry performance in the first half of the year was under pressure, Yunnan Far East Party Branch used Party building to drive enterprise development.

8、 Cement Net Weekly Report: The demand for concrete in East China has not improved significantly, and the price of concrete is mainly stable (8.26-8.30)

The demand for concrete in East China has not improved significantly, and the price has remained stable. The market activity in Jiangsu, Zhejiang and Shanghai is low, the shipment volume is slightly reduced, the price of raw materials rises slightly, but the overall price tends to be stable. Anhui's concrete market is weak and stable, with a slight increase in shipments but fierce competition, while Shandong's new projects are few and demand is weak. The market demand for concrete in Fujian is weak and the price has not changed much. The price of raw material cement in Jiangxi is rising, but the price of concrete is stable, and the price of C30 non-pumping tax is 300-360 yuan per square meter.

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Correlation

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This transaction will help the Group to lay the foundation and seize the opportunities in the cement industry in DRC.