Hubei Province, which thrives on water and rivers, is adjacent to Anhui in the east, Chongqing in the west, Jiangxi and Hunan in the south, and Henan in the north. It has a unique geographical location and can be called the hinterland of central China. On such a fertile soil, the Yangtze River Golden Waterway passes through the province, which provides natural convenience for the transportation of bulk materials such as cement, reduces logistics costs, and promotes the prosperity of the industry. The development of the cement industry in the region has a far-reaching impact on the whole Yangtze River Basin. Since
2024, affected by the continuous bottoming of real estate investment and insufficient start-up of infrastructure projects, downstream demand has recovered slowly, cement production has continued to decline, the contradiction between supply and demand has further intensified, and the market competition is still fierce. < a href = "How is the cement industry in Hubei https://price.ccement.
?"? Faced with the current situation, what are the views of cement enterprises in the region? The
cement industry in Hubei is not optimistic about the future, and the data from
China Cement Network show that by the end of 2023, the annual production capacity of cement clinker in Hubei is 64.3498 million tons . The top five clinker producers are Huaxin Cement , Gezhouba Cement, Asian Cement, Jinglan Cement and Queshi Cement . The clinker production capacity of the top five enterprises accounted for 79% of the total in the whole province.
Since the beginning of this year, the cement industry in Hubei has been facing the situation of falling volume and price and intensified market competition, which has caused great pressure on the operation of most enterprises. On the
demand side, Hubei produced 17.596 million tons of cement in the first quarter of this year, with a year-on-year decline of 26.11%, and 25.5636 million tons of cement in January-April, with a year-on-year decline of 19.
In the areas along the Yangtze River, especially in the Yangtze River Delta, the price of cement has been raised by 30 yuan/ton in a large area, and the price of clinker has been raised by 30 yuan/ton synchronously. As of mid-May, the large-scale increase in Hubei still retains an increase of 10-15 yuan/ton, which is better than that in the Yangtze River Delta. But how long it will last is uncertain.
On May 23, enterprises in Wuhan, Huangshi, Ezhou and other places in eastern Hubei notified an increase in cement prices by 30 yuan/ton. At present, the market demand and sales are weak, the inventory of enterprises is running at a high level, and the implementation after the rise is difficult, and the specific implementation remains to be observed. Data tracked by
China Cement Network also show that cement prices in Hubei have been declining all the way this year, and did not rise until mid-April. Compared with the surrounding provinces, cement prices in Hubei are currently at a lower level. This is closely related to the special geographical location of Hubei.
The analysis of the survey data of several cement enterprises shows that the main reasons for the poor situation of the cement industry in Hubei are as follows:
First, the impact of foreign cement is serious. In the past few years, cement along the Yangtze River in Chongqing, Hubei, Anhui and other provinces has become normal, but with the increasingly severe market situation. < a href = "The second https://price.ccement.com/pricenewslist-1-500000-0.
is that there are differences in the concept of enterprises in the region. Enterprises have different opinions on coordination, self-discipline and compliance with the production requirements of approved production capacity, which makes it difficult to reach a consensus as a whole and to effectively integrate resources to form a unified direction of action.
It calls on large enterprises to take the lead in overcoming the difficulties
. In view of the current challenges in Hubei cement industry, local enterprises have actively responded and put forward multi-faceted coping strategies. The core measures include but are not limited to the following:
First, to maintain a reasonable price level and industrial profits , the current reduction in cement demand is not commensurate with the reduction in industrial profits. It is very important for the cement industry to maintain a reasonable price level and industrial profit. Only when the industry has a reasonable profit, can it continuously drive technological innovation, upgrade environmental protection and fulfill social responsibility, and contribute to supporting the steady growth of macro-economy. But now there is low-price dumping in the industry, which is actually in a state of non-benign and ineffective competition. The cement industry should resolutely curb the occurrence of low-price dumping and other acts to prevent market disorder.
The second is to form a cross-regional unified peak-staggering production policy , for example, for the Yangtze River Basin, we can unify the peak-staggering production policy to improve the environment of the Yangtze River Basin and alleviate the overcapacity of the common market.
Third, it calls for stopping capacity replacement . In the current grim situation, it is suggested that the policy of stopping capacity replacement should be introduced to fundamentally block the disorderly expansion of new capacity and prevent the further aggravation of the imbalance between supply and demand in the market, thus providing an opportunity for the industry to breathe and adjust.
Fourthly, large enterprises should play a leading role , and leading enterprises should face the industry situation rationally, play a leading role, and actively guide the industry to develop positively in strict implementation of peak staggering production, creating a fair competitive environment, maintai Ning reasonable prices, and promoting environmental protection upgrading and transformation.
Fifth, continuously reduce costs and enhance the core competitiveness of enterprises. No matter how the industry situation changes, enterprises should always focus on their own core, through green transformation, environmental upgrading, intelligent layout and other means, constantly reduce the cost of enterprises, so that enterprises in the fierce market competition in an "invincible position".
