2024, the cement industry suffered a "cold winter once in 30 years". Some cement enterprises face the decline in demand, lack of determination and thinking, blindly implement radical market strategies, and fight a price war. Including the Yangtze River Delta, Pearl River Delta and other domestic hot markets, there have been cement prices below 200 yuan/ton. The result
of disorderly competition is that the overall interests of the industry are damaged, with a loss of about 1.2 billion yuan in the first half of the year. Faced with this situation, how can we change? The Politburo of the Central Committee of the Communist Party of China has given the answer: anti-involution! Strengthen industry self-discipline and prevent "involution" vicious competition.
On September 9, the "Yangtze River Basin Cement Anti-Involution Forum" sponsored by OCC (Yangtze River Cement Enterprise Alliance) was successfully held in Wuhu Conch, and all the cement enterprises along the Yangtze River attended the meeting.
This conference is the first anti-involution conference in the cement industry, which took the lead in putting forward the concept of "anti-involution, anti-dumping, compliance and peak staggering production", advocating the prevention of involution through orderly industry ecology, and promoting the industry to cope with the serious mismatch between supply and demand and the continuous downward demand by actively improving the supply-side structure.
The "Cement Anti-involution Forum in the Yangtze River Basin" also put forward three major proposals:
1. Understand the market situation rationally and build the cornerstone for the healthy and orderly development of the industry;
2. Adjust the balance between production and sales;
3. Firmly implement the on-demand production mechanism.
In order to implement the spirit of the Third Plenary Session of the Twentieth Central Committee of the Communist Party of China and the spirit of the recent meeting of the Political Bureau of the Central Committee, prevent "involution" vicious competition, restore the fragile situation of ecological construction in the cement industry, promote cement enterprises to regain confidence, overcome difficulties and challenges, and regain confidence in steady growth, explore the direction.
Anti-involution is not only a countermeasure to the current predicament, but also the only way for the long-term development of the cement industry. It means that the industry should withdraw from the quagmire of disorderly competition and move towards an orderly, healthy and sustainable development path. Cement enterprises are required to strengthen industry self-discipline, advocate the concept of fair competition and win-win cooperation, actively respond, maintain strategic strength and firm confidence in development. The significance
of anti-involution lies not only in promoting the healthy development of the industry, but also in its far-reaching impact on the economy of the whole country. As the basic industry of the national economy, the healthy development of the cement industry plays an irreplaceable role in the national infrastructure construction, the process of urbanization, and even the stable growth of the whole economy.
In this anti-involution journey, every cement enterprise is a participant, and every cement industry practitioner is a soldier. We need to take practical actions to practice the concept of anti-involution, put an end to vicious competition, truly stand in the position of the industry decision-making action, adhere to innovation-driven, adhere to long-term doctrine, and jointly build a healthy, orderly and sustainable industry development environment.
