Everyone Talks About the Cold and Warm of Cement | Xu Mingxia: The Production Capacity of the Industry Is Getting Bigger and Bigger

2024-01-15 11:05:10

Although the industry has created brilliance during the ten years of capacity removal, it has not really solved the problem of overcapacity in the end.

In

2023, the contradiction between supply and demand in the cement industry was further intensified, the market competition was fierce, and the industry efficiency declined sharply. According to the Cement Big Data Research Institute of China Cement Network, the annual profit of the cement industry in 2023 is estimated to be around 31 billion yuan. How should cement enterprises deal with this industry situation or continue to continue in 2024?   Xu Mingxia, vice president of

Anhui Cement Association, said that the development trend of the cement industry in 2024 is still not optimistic.

Xu Mingxia pointed out that the problem of overcapacity in the cement industry is becoming more and more prominent. Although the industry has created brilliance during the period of overcapacity removal for more than ten years, it has not really solved the problem of overcapacity, so that the cement industry is facing more difficulties in the face of the decline in market demand.

"On the one hand, cement enterprises are reducing production capacity, on the other hand, they are transforming." Xu Mingxia said, "It is energy saving and carbon reduction, but the total amount is still increasing.". After so many years of capacity removal, the industry's capacity is getting bigger and bigger. One of the results

of overproduction is that the effect of peak staggering is weakening day by day.

According to China Cement Network, due to the continuing downturn in the market in 2023, in order to stabilize the market, some provinces have arranged in advance to plan the peak staggering plan for 2024. Among them, from the perspective of industry self-help, Hebei specially held the cement industry 2023-2024 annual peak-staggering production special deployment meeting, requiring: from November 1, 2023 to October 31, 2024, 200 days of peak-staggering production for self-discipline self-help of the industry in Northeast Hebei; 190 days of peak-staggering production for self-discipline self-help of the industry in Central and South Hebei.

Xu Mingxia pointed out that the normalization of off-peak production is indeed one of the effective measures to alleviate the current industry dilemma, but the continuous extension of off-peak production days may lead to waste of resources and other issues. Xu Mingxia appealed that large enterprises should play a leading role, actively eliminate backward production capacity, and truly implement the resolution of serious overcapacity.

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