2024, Zhuge Wenda, chief scientist of Century Xinfeng Group, delivered a keynote speech entitled "Anti-Involution, Creating a New Era of Cement" at the Yangtze River Basin Cement Anti-Involution Forum held in Wuhu Conch Hotel, Anhui Province.
Zhuge Wenda was awarded the vice chairman
of the Yangtze River Cement Enterprise Alliance. Zhuge Wenda pointed out that after 45 years of rapid development of China's economy, all traditional industries have serious overcapacity, and the development thinking of the industry needs to shift from continuous development to the direction of output contraction, quality improvement and stable enterprise value.
Zhuge Wenda delivered a keynote speech
entitled "Anti-Involution, Creating a New Era of Cement". Zhuge Wenda said that the price of cement in China is only 15-30% of that in developed and backward countries in the world, and the price level per ton of cement is even lower than profit level per ton of cement in developed countries. This is a disgrace to China's cement industry and many traditional industries in China.
Traditional industries, including cement and steel industries, have made great contributions to the construction of the socialist market economy with Chinese characteristics. At the turning point of China's economic transformation and development, they should not become abandoned industries, but should become industries with a smooth landing. Only when traditional industries land smoothly can they stabilize employment, tax revenue and the value of stock assets, and provide a good foundation for scientific and technological innovation. The experience of foreign developed countries has proved that traditional industries can achieve the above goals; the historical lessons of more foreign countries caught in the middle-income trap have also proved that if we do not attach importance to the smooth landing of traditional industries, we will fall into the middle-income trap and fail to enter the ranks of developed countries. Comparison Chart
of Cement Prices
in China, Europe and the United States Zhuge Wenda believes that only by realizing the inverse ratio between output and price can we maintain the stability of industry value and make greater contributions to employees, society and the country. The number of
production days is inversely proportional to the price of cement
. Zhuge Wenda believes that from Yunnan, Guizhou and Sichuan to Hunan, Hubei and Jiangxi, and then to Jiangsu, Zhejiang and Anhui, the Yangtze River shipping is very developed. It is a unified market. It needs to work together to reverse the involution in order to create a new era of cement. Sketch Map of
the Yangtze River Cement Market Zhuge Wenda believes that all regions of China's cement industry will enter the new normal in which the number of production days is less than number of kiln shutdown days. The industry should assess the market demand, reasonably determine the production time, and achieve a balance between production and marketing. It is suggested that the relevant departments of the state implement the anti-involution measures to the production days of the traditional industries in different regions, and adjust the production days according to the real market price, that is, when the market price breaks through the price ceiling, the production days should be increased appropriately, and when the market price breaks through the price floor, the production days should be reduced appropriately, so as to achieve the relative stability of the market price. The price of an enterprise in a specific market is decided by the enterprise itself, resolutely opposing price monopoly, and the competition among enterprises is mainly reflected in the quality, service, brand and the extension of the industrial chain. Suggested Table
of Monthly Start-up Days by Province in
the Yangtze River Basin
