"In the first quarter of this year, the demand for cement was the worst season in my career except for the year of epidemic prevention and control," said the sales director of a cement enterprise in western Henan.
According to its introduction, the demand for cement in Henan fell by about 25% in the first quarter, and the market demand in western Henan is basically consistent with the overall situation in Henan. A local core cement enterprise, most of the time in the first quarter, shipped less than 1000 tons per day, and even only 300-400 tons in many cases. There are three main reasons for the decline in
demand: 1. The civil construction market is almost stagnant; 2. Many real estate projects started last year have not been started this year, and only a small number of development projects started this year are in demand; 3. The pace of infrastructure projects is slow, including key projects such as the Yellow River Bridge on National Highway 209 and the Sanluo Expressway.
The above-mentioned professionals said that the downturn in the real estate industry had a very serious impact on the cement market in Henan, including western Henan. Taking Zhengzhou as an example, more than 90% of the local concrete enterprises lost money last year. At present, the daily shipment volume of a large number of mixing stations is only 300-400 square meters.
On the one hand, demand has declined seriously, on the other hand, production capacity has remained high. Local industry insiders pointed out that the current Henan cement production capacity is seriously excessive, and the majority of large lines, even if half of the shutdown, the other half of the production capacity is still excessive, and the important reason for this situation is that the production line overproduction problem is more common, coupled with low demand, making the contradiction between supply and demand intensified.
For this year's market trend, the company is quite pessimistic.
"At least from the demand side, there will not be much improvement, but last year Henan cement enterprises suffered serious losses, this year in the price competition, we may be slightly restrained," the industry believes that in the short term, the stability of the industry situation still depends on peak production, and the key to peak production is the implementation of all enterprises in place.
According to its introduction, the two leading enterprises in Henan, Zhonglian Tongli and Tianrui Cement , can often play the responsibility of large enterprises and take the lead in peak staggering production, but some private enterprises have poor implementation, which weakens the effect of peak staggering production. In the
long run, the trend of declining demand is inevitable, and Henan cement industry will inevitably eliminate part of its production capacity. In this regard, the industry believes that the closure and integration is the inevitable result of the development of the cement industry, and the kiln line enterprises without supporting mine resources will have a relatively worse living environment.
The industry also pointed out that the current demand for cement has declined seriously, but there is still a certain overall demand. In the long run, the population problem is the key, especially in Sanmenxia and other places, which belong to the net outflow of population.
Cement demand needs to be based on economic development, and population is the core element of economic development. In view of the outflow of population and the decline in birth rate, the future market prospects are not optimistic, which is the biggest potential crisis in the regional market.
