According to China Cement Market Data Center, some major manufacturers in Jinan recently decided to reduce the actual transaction price by about 20 yuan/ton on the original basis in order to increase sales.
The decline has become the main tone of cement prices in Shandong in the past year. China Cement Network cement big data market monitoring information shows that the current average price of cement in Shandong is more than 100 yuan/ton lower than the same period last year. A person in charge of a cement enterprise in the western inland of
Shandong Province said that in 2023, the cement production and sales of the enterprise fell by more than 20% year on year, and the price also fell by about 100 yuan/ton year on year. Shrinking real estate has led to a decline in demand, while the recovery of infrastructure is also very limited, resulting in a decline in both volume and price, which is also a common situation in Shandong Province. According to the feedback from a cement enterprise in the eastern coastal area of
Shandong Province, the decline in local cement prices was slightly weaker, with a year-on-year decline of about 70 yuan/ton in 2023 and 2022, and the output also declined to a certain extent. Due to the development of cement export business, the company's sales volume increased slightly in 2023.
The company said that the price of cement in the eastern coastal areas remained relatively high in the province, mainly due to the higher production and operation costs of local cement enterprises, in addition to the high level of development and slightly strong demand in the eastern coastal areas.
Firstly, the eastern coastal area is located at the end of the land transportation line, so the transportation cost is relatively high; secondly, the quality of local limestone is general, and the cost of raw materials for cement clinker production is also high. In order not to lose money, the price of cement enterprises in the eastern region is often higher than that in the western region, but the high cost also leads to lower profit margins.
In addition, the person in charge of the above-mentioned cement enterprises pointed out that because the price of cement is too low, many cement enterprises are on the edge of loss or even running at a loss. Even if individual enterprises lose money, they must resolutely implement the strategy of seizing the market at a low price, which makes the cement market worse.
Looking forward to 2024, many cement enterprises have no expectation of this, the only certainty is that the probability of loss in 2024 is still high. A cement enterprise said that at present, Shandong is in the period of off-peak kiln shutdown. In previous years, enterprises may start full horsepower production ahead of schedule and pile up inventory to ensure the supply of shutdown and construction tide after spring, but this year, everyone basically maintains low inventory, only to ensure continuous supply before kiln opening.
