beginning of the year, the cement market has been fighting fiercely, the price of cement has been declining, and the price of cement in some areas has even fallen below the cost line. Cement manufacturers are facing the embarrassing situation of "opening one day, losing one day". The more they
sell, the more they lose. Why don't the cement plants close down temporarily? Why do they continue to open?
First, the
cement market is seriously oversupplied and the demand is gradually decreasing. Once the enterprise stops production, the original market will be gradually divided up by other enterprises, and it will be more difficult to restore the market share. If we stick to the end, we may be able to "kill" a group of competitors and eat a bigger cake in the upward cycle.
Second, cash flow
cash is the blood of the company, for cement enterprises, not to start means no income, there may be problems such as employees'wages can not be paid, bank loans can not be repaid, collapse may only be between the first line.
3. Production cost
The longer the shutdown time, the higher the comprehensive cost of cement. Long-term shutdown and shutdown of cement plants will cause waste of equipment, manpower and other resources, push up costs, and is not conducive to market competition.
Of course, in addition to the above mentioned, the shutdown may also damage the brand image of the enterprise, cause panic in the upstream and downstream of the supply chain, and so on.
At the same time, it should be pointed out that some cement enterprises have made a lot of money in the past few years when the cement market was booming. Even if they are losing money now, they still have enough "ammunition" to maintain "firepower output". It is far from giving up market share and stopping production. Instead, they want to take advantage of others to stop production and expand market share.
For many cement enterprises, in the face of the current market situation, there is no way to lose money, but the loss of shutdown is greater, even if it will bleed, but also to ensure the stability of market share and the normal operation of enterprises.
As the saying goes, "If one's head is further broken and bleeding, one step back will be beyond redemption.".
Actively promoting the upgrading of large-scale production equipment and actively promoting the energy-saving technological innovation and environmental protection upgrading and transformation of the cement industry have immeasurable strategic significance and practical effectiveness for enhancing the core competitiveness of cement enterprises and realizing the grand blueprint of sustainable development of the cement industry.
To this end, China Cement Network will hold the 11th China Cement Energy Conservation and Environmental Protection Technology Exchange Conference-Equipment Renewal Forum in Nanjing, Jiangsu Province on June 13-14 . This forum will gather government leaders, industry technical specialist, scientific research institutions, universities, cement enterprises and equipment suppliers to discuss and analyze the practical path of equipment renewal and green upgrading in the cement industry, so as to promote the industry to move towards a more energy-efficient, greener and environmentally friendly future.
