9.15 Cement Morning Post: Cement output decreased by 11.25% from January to August; production capacity of Bohai Cement increased; Conch Cement Three-year Plan

2024-09-15 07:02:03

What is happening in the cement industry?

1、 Cement Net Video: From January to August this year, the cement output was 1.159 billion tons, with an absolute decrease of 11.25%!

Cement output from January to August this year was 1.159 billion tons, down about 150 million tons, or 11.25%, from 1.306 billion tons in the same period last year. Especially in August, cement production was 158 million tons, down 11.9% from the same period last year. This figure reflects a significant reduction in the current cement industry output.

2、 Bohai Cement 5000t/d Production Line Completes 500t/d Capacity

The capacity of 5000t/d clinker production line of Xinjiang Bohai Cement Co., Ltd. has been supplemented, and the actual capacity has reached 5500 t/d. The capacity replacement plan has been publicized by the Department of Industry and Information Technology of Xinjiang Uygur Autonomous Region, and there is no objection during the publicity period, which is now announced. According to the relevant policy requirements, the announcement can be supervised by the public.

3、 Cement Net Video: Conch Cement's Plan for the Next 3 Years

Conch Cement's plan for the next three years includes five major directions: 1) taking advantage of the opportunity of reshaping the domestic market to promote high-quality mergers and acquisitions; 2) steadily expanding the international market and exploring diversified development models; 3) strengthening and expanding the upstream and downstream industrial chain; 4) cultivating new productivity through digital transformation; 5) developing new energy and environmental protection industries.

4、 Weekly Report of Cement Net: The price of raw materials has been pushed up one after another, and the price of concrete in Zhongnan market may rise slightly (9.9-9.14)

According to the data of China Cement Network, the price of raw material cement has risen in the central and southern markets, which may lead to a slight increase in the price of concrete. Due to the typhoon weather in Guangdong and Guangxi, some projects were shut down, the demand was slow, the price of cement dropped slightly, and the price of concrete remained stable. The rising price of raw material cement in Hunan may lead to a slight rise in concrete prices, but the lack of market demand makes the price rise cautious. Demand in Hubei has improved and cement prices have risen, but concrete prices are temporarily stable. The weather in Henan is good, the price of cement is rising, and the concrete market is temporarily on the sidelines. Overall, the price of concrete has a slight upward trend, but the market reaction is mixed.

5、 Weekly Report of Cement Net: Market Demand in East China Continues to Be Low, Concrete Price Is Weak and Stable (9.9-9.14)

The market demand in East China continued to be depressed, and the price of concrete remained weak and stable. Due to the impact of rain weather, the demand in Jiangsu market is weak but stable, and the shipment volume is 50 to 70%. Zhejiang and Anhui are affected by rainy and seasonal factors, with flat demand and stable market prices. Shandong market demand is stable but not ideal, and some enterprises adjust prices slightly. Fujian plans to push up the price of cement, but the terminal demand is weak and the price of concrete is stable. The price of concrete in Jiangxi has not changed much, the demand is about 4-6%, and the price of cement is stable.

6、 Weekly Report of Cement Net: The demand is still not ideal, and the price of concrete in southwest China is mainly weak and stable (9.9-9.14)

Data from China Cement Network show that the overall price of concrete in southwest China is weak and stable. The price of cement in Chongqing rises slightly, but the terminal demand is stable, and the impact of high temperature on the market is limited. The price of C30 commercial mixing in the main urban area of Chongqing is about 260 yuan per square meter, and the price trend remains weak and stable. Due to the rising price of cement in Sichuan, the price of concrete is expected to rise slightly, and the price of C30 in Chengdu is about 300 yuan/m3. Prices in Yunnan are stable this week due to weak demand caused by rainfall, a slight decline in cement prices and a downturn in the concrete market.

7、 Cement Net Weekly Report: No Significant Change in Commercial Mixing Market in Northwest China (9.9-9.14)

The commercial mixed market in Northwest China is stable and there is no significant change. With the improvement of weather and the acceleration of infrastructure projects, the concrete market in Shaanxi is expected to recover, but the overall demand is weak and the activity is low. Due to the decrease of rain in Gansu, the civil market demand is weak, the shipment has not improved, and the price of commercial mixing is stable. The quotation of concrete in Xinjiang and Qinghai has not changed.

8、 Shangfeng Cement intends to increase the capital of its wholly-owned subsidiary by 400 million yuan.

Shangfeng Cement announced that it would use its own funds to increase the registered capital of its wholly-owned subsidiary Shangrong Logistics by 400 million yuan to 430 million yuan. The purpose of this capital increase is to improve the financial structure of Shangrong Logistics and promote its sustainable development, and will not have a negative impact on the finance and operation of Shangfeng Cement, nor will it harm the interests of the company and its shareholders.

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Correlation

On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023.