In 2024, 15 cities will receive financial support from the central government, many of which are related to cement demand!

2024-06-04 16:54:19

However, it should be noted that under the background of serious overcapacity of cement production, the demand increment generated by urban renewal is not enough to alleviate the contradiction between supply and demand.

On May 31, the Ministry of Finance announced the results of the evaluation of urban renewal action in 2024.

The announcement shows that from 2024, the central government will support some cities to implement urban renewal actions. Recently, the Ministry of Finance and the Ministry of Housing and Urban-Rural Development organized experts to conduct a competitive review. The first batch of 15 cities to be supported are (in order of administrative divisions): Shijiazhuang, Taiyuan, Shenyang, Shanghai, Nanjing, Hangzhou, Hefei, Fuzhou, Nanchang, Qingdao, Wuhan, Dongguan, Chongqing, Chengdu and Xi'an. The Circular on Developing Demonstration Work of Urban Renewal jointly issued by the

Ministry of Finance and the Ministry of Housing and Urban-Rural Development clearly States that the central government will grant quota subsidies to demonstration cities according to regions, of which the total amount of subsidies for each city in the eastern region will not exceed 800 million yuan, and the total amount of subsidies for each city in the central region will not exceed 1 billion yuan. The total amount of subsidies for each city in the western region shall not exceed 1.2 billion yuan, and the total amount of subsidies for each city in municipalities directly under the Central Government shall not exceed 1.2 billion yuan. The funds are allocated annually according to the progress of the work. The direction of

financial support includes:

1. Renovation of urban underground pipeline network. Renovation of urban underground pipeline networks such as gas, heat, water supply and drainage, and electricity will be carried out, and the construction of urban underground comprehensive pipeline corridors will be promoted according to local conditions, so as to improve the overall level of urban underground pipeline networks.

2. Construction of full coverage model area of urban sewage pipe network. The sewage treatment pipeline network is renovated according to the mode of "integration of plant and network" to improve the efficiency of sewage collection and treatment.

3. Make up for shortcomings in municipal infrastructure. Municipal infrastructure such as domestic waste classification, integrated pole boxes and logistics facilities will be upgraded and transformed to make up for the shortcomings of urban infrastructure; the service function of urban green space will be improved, and the construction of pocket parks and the open sharing of green space will be promoted.

4. Renovation of old areas. The historical and cultural blocks, existing public buildings and public spaces will be upgraded to save energy and reduce carbon, so as to continuously improve the building functions and improve the quality of the living environment. We will implement projects to improve urban functions, promote aging and child-friendly transformation, and accelerate the construction and transformation of barrier-free environments in public places.

To sum up, the above 15 cities plan to carry out urban renewal actions, which will have a series of positive and far-reaching impacts on the development of the cement industry in the region:

on the one hand, urban renewal actions such as underground pipeline network renewal, old area transformation, municipal facilities upgrading, green space construction, etc. Will directly stimulate the demand for cement and other building materials. Therefore, the cement industry is expected to usher in a certain market increment, especially in the initial and peak period of renewal action, the demand growth will be more obvious.

On the other hand, with the promotion of urban renewal projects, it may also drive the surrounding supporting construction, further expand the demand for cement, and provide stable and sustained market support for the cement industry.

However, it should be noted that under the background of serious overcapacity of cement production, the demand increment generated by urban renewal is not enough to alleviate the contradiction between supply and demand. In the future, the overall cement consumption generated by the renovation of old underground pipelines and the construction of comprehensive pipe galleries will be about 10-20 million tons per year, which is equivalent to 0.5% -1.0% of the national cement output in 2023. Underground pipeline network transformation can effectively reduce the probability of disaster events and improve the quality of life of residents, which is an important part of future urban renewal action. However, due to the limited proportion of cement products in the pipe industry and the slowdown in the construction of underground pipe galleries, the actual pulling effect on cement demand is relatively limited, and it is difficult to change the downward trend of national cement demand.

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