The Meiyu in the Yangtze River Delta Is Coming, and the Cement Industry May Be Under Pressure

2024-06-03 10:41:06

After the Meiyu season, the middle and lower reaches of the Yangtze River immediately enter the high temperature season from July to August, which is also not conducive to outdoor construction. Therefore, the arrival of the Meiyu season every year basically means that the cement off-season begins, and the market needs to wait until September to start again.

According to the latest forecast of Zhejiang Climate Center, it is more likely to enter Meiyu in mid-June this year. The precipitation process in mid-late June has increased significantly. Meiyu rainfall is close to perennial or more. Most of the province is 250-450 mm, and some are more than 450 mm.

Meiyu period refers to a period of continuous rainy weather in the middle and lower reaches of the Yangtze River in China from mid-June to early and mid-July every year. At this time, the utensils are easy to mildew, so it is also called "mildew rain", and when the plum in the south of the Yangtze River is yellow and ripe, it is also called "plum rain" or "yellow plum rain". The stay time of the rain belt is called "Meiyu season", the beginning day of the Meiyu season is called "Meiyu", and the end day is called "Meiyu".

Because the plum rain season is not conducive to the construction of the project, coupled with the wet and slippery roads caused by precipitation, which affects transportation, the plum rain season is the core factor affecting the demand for cement in the middle and lower reaches of the Yangtze River.

In addition, after the Meiyu season, the middle and lower reaches of the Yangtze River immediately enter the high temperature season from July to August, which is also not conducive to outdoor construction. Therefore, the arrival of the Meiyu season every year basically means that the cement off-season begins, and the market needs to wait until September to start again.

According to the statistics of Zhejiang Meteorological Bureau, the rainy season in the past four years has lasted for 25-30 days, which means that the middle and lower reaches of the Yangtze River will enter a three-month off-season from mid-June. Since the beginning of

this year, the cement market in the Yangtze River Delta has been in the doldrums, and the cement price has been pushed up several times, but the implementation effect is not good. The ex-factory price of P.O42.5 cement once dropped to about 200 yuan/ton.

Recently, the price of cement in the Yangtze River Delta has risen again by 30-50 yuan/ton, and the current implementation is better than the previous round, but the overall price is still lower than the same period in previous years. In view of the coming off-season market, after the current round of price push, if there is no further push in the later period, the cement market situation in the first half of the Yangtze River Delta will be basically "finalized".

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Recently, due to the persistent cost pressure in the south, the price of concrete has risen slightly with the raw materials, but the growth of market demand is limited, and the overall quotation is still stable. From October 31 to November 6, the national concrete price index closed at 112.47 points, up 0.31% annually and down 10.11% year-on-year.