Demand declined, the contradiction between supply and demand intensified, and the domestic cement market as a whole was depressed in the first half of the year. However, from a regional perspective, the price situation in the northern region is relatively good, especially in Xinjiang, the three eastern provinces, eastern Mongolia and Hebei , where cement prices are at a relatively high level.
Taking Hebei as an example, the big data of China Cement Network show that the overall cement market in Hebei has shown a steady upward trend since this year, and the development trend of the industry is relatively stable. Local cement enterprises said that at present, the bulk ex-factory price of Hebei P.O42.5 cement is basically maintained at 310-330 yuan/ton. "Although it can not be compared with the peak period, it is already a relatively ideal result in the current industry environment.".
Rational view of the decline
in demand "This year, the demand for cement in the whole country is declining. In terms of the decline alone, the demand for cement in the north has fallen more than that in the south, but in terms of market performance, the demand in the south is much more severe than that in the north, mainly because it is not rational enough," said the market manager of a leading cement enterprise in Hebei.
In terms of time, due to the relatively weaker economic vitality in the north than in the south, coupled with population outflow and other factors, the cement market demand in the north entered the downward cycle earlier than in the south, especially in the northeast, which is more serious. At that time, facing the decline in demand, the northern cement enterprises also broke out a serious price war.
"Cement enterprises in the north realized earlier that under the situation of declining demand, price war will only bring fearless internal friction, on the contrary, some cement enterprises in the south lack expectations for the sharp decline in demand, but also want to eliminate competitors through market competition, leading to more chaos in the market," said the person in charge.
In Hebei, the local cement enterprises have formed a good relationship of competition and cooperation in the face of the downward trend of the industry. Most enterprises can realize that ensuring the basic benefits of the industry is the key to maintain the development trend of the industry, and actively avoid the vicious competition of involution. Enterprises in the implementation of peak staggering production are in place, and it is expected that the number of days of kiln shutdown will be close to 200 days this year.
Local enterprises said that "price war, low price will only lose more money, the current other are unreliable, can only rely on themselves, change their thinking, adhere to the price and profit", rational view of the current industry supply and demand situation, is the first prerequisite to get out of the predicament.
At present, the domestic economy is facing many challenges, and maintaining survival and basic profits is an important way for cement enterprises to fulfill their social responsibilities.
"After decades of development in the domestic cement industry, the production technology of each enterprise is at a high level, the cost difference between enterprises is narrowing, coupled with the accumulation of funds in the past few years and the" short-leg "characteristics of cement, it is more and more difficult to eliminate competitors through market competition, and the final result is a long-term large-scale loss in the industry." A cement enterprise in central Hebei said. The
loss of enterprises not only limits the pace of technological upgrading, but also is not conducive to the high-quality development of the industry, not to mention the travel of corporate social responsibility.
Local enterprises pointed out that cement enterprises are mostly large local taxpayers and employment households, which play an important role in local economic development and social stability. Serious losses or even bankruptcy of enterprises may lead to the decline of government tax revenue, asset shrinkage, bad debts of banks and unemployment of employees.
In the current economic environment, enterprises should not only pay attention to economic benefits, but also have the feelings of home and country, and have a sense of social responsibility. Only when enterprises make profits can they maintain long-term, ensure employment, bring income to employees and create value for society. Li Wenxiu, chairman of Tangshan Shenglong Cement, believes that in the face of difficulties, enterprises must have a sense of responsibility and their own feelings.
Hebei cement enterprises are conducive to economic recovery and development by strictly implementing peak staggering production, rejecting vicious competition in the market, gradually promoting industry capacity reduction, maintaining stable development of the industry, and ensuring employment and employee income. Since
this year,
large enterprises in Hebei have taken the lead in strictly implementing peak staggering production, resisting vicious competition in the market, injecting a stable force into the market, playing an important role in promoting industry self-discipline and maintaining market order, and demonstrating the spirit of large enterprises in the turbulent period of the industry.
"After the stability of the northeast market, Tangshan prices are relatively high, local enterprises are also willing to maintain a reasonable profit margin. At present, the main pressure on the Hebei market comes from Henan in the south and Shandong in the east, among which Henan is the most important. While stabilizing the internal market, large enterprises in the region actively respond to external shocks." "It has created conditions for the stability of the industry," local enterprises said.
At the critical moment when the industry as a whole is facing adjustment, large enterprises have created a valuable window of transformation time for the industry by maintaining market stability. During this period, enterprises can better adjust their business strategies, accelerate the pace of technological innovation, and enhance product competitiveness. At the same time, it also provides favorable conditions for relevant government departments to formulate and implement more scientific and rational industrial policies, and helps to promote the overall development of the industry towards a more green, intelligent and sustainable direction.
On July 30, the Political Bureau of the CPC Central Committee held a meeting to analyze the current economic situation and deploy economic work in the second half of the year. The meeting stressed the need to strengthen industry self-discipline and prevent "involution" vicious competition.
At present, the cement industry is experiencing unprecedented market challenges and structural transformation. Insufficient demand for cement is the general trend of the economic cycle, which is irreversible in the short term. This is determined by the economic development cycle and is a problem in the process of development and transformation. The disorderly competition and mutual involution among enterprises will lead to the loss of the whole industry, which is not conducive to the sustainable and healthy development of the industry. To achieve the healthy development of the industry, we need to advocate the concept of fair competition and win-win cooperation, not only to actively respond, but also to maintain strategic strength and firm confidence in development.
