Recently, the price of cement in Guangdong continues to pick up, and the Guangdong and Guangxi markets are interlinked. Can the rising market in Guangdong bring a little warmth to the calm cement market in Guangxi? China Cement Network has investigated some cement enterprises in Guangxi.
"The market is still very difficult." A cement company in Nanning said. Near the end of the year, some provincial and highway construction sites in Guangxi were gradually shut down, and the local cement demand continued to decline due to the frequent rain weather in recent years. In terms of outward delivery, since October 2023, the Xijiang River has entered the dry season, the shipping pressure is high, and the outward delivery of cement in Guangxi is limited. As the Spring Festival is approaching, some enterprises have given feedback that they have suspended the delivery of cement. The severe situation faced by the cement market
in Guangxi can be seen from the sharp drop in cement prices. Cement data from
China Cement Network show that in early November 2023, cement prices were raised in some parts of Guangxi due to factors such as rising prices of raw materials such as coal. Since then, the price of cement in Guangxi has been running smoothly. However, overall, the average price of cement in Guangxi declined seriously in 2023, with a decline of about 100 yuan/ton compared with 2022. Behind the price
drop is the bleak situation of real estate construction falling sharply, key projects landing slowly and cement demand shrinking. At the same time, new production capacity in Guangxi is still being released. According to the data of China Cement Network, another 3.255 million tons of clinker production capacity will be put into operation in Guangxi in 2023, and the total clinker production capacity will reach 0.12 million tons 10649, ranking third in the country, second only to Anhui and Guangdong.
Many new capacity investors originally positioned the main market in the Guangdong-Hong Kong-Macao Greater Bay Area at the other end of the Xijiang River, but this year Guangdong is also facing a sharp decline in demand, and the capacity of the Xijiang River is greatly affected by seasonal factors, which adds uncertainty to the export of cement from Guangxi.
Looking ahead to 2024, some manufacturers in Guangxi expressed optimism. An enterprise told China Cement Net: "Next year may be better, at least some infrastructure projects can be landed." However, some enterprises said that in 2024, the competition in the cement market in Guangxi will be further intensified, and the market situation will remain difficult.
