After the festival ushered in a "good start" Guangdong cement price increase

2024-02-22 14:58:38

The important locks on the Xijiang River were suspended for maintenance, the waterway transportation was not smooth, and the entry of foreign cement in Guangdong was reduced.

Leading enterprises in the Pearl River Delta region of Guangdong raised the price of bulk cement by 30 yuan/ton on February 21,

according to the China Cement Market Data Center. According to the survey of China Cement Network, there are three main reasons for this round of price increase.

First, the important locks on the Xijiang River were suspended for maintenance, the waterway transportation was not smooth, and the entry of foreign cement in Guangdong was reduced.

According to the Notice of Wuzhou Waterway Maintenance Center on Adjusting the Suspension and Maintenance of the Second Line Lock of Changzhou Water Conservancy Project, the suspension and maintenance of the Second Line Lock of Changzhou Water Conservancy Project is planned from February 19 to February 25, 2024. The suspension time is from 8:30 to 17:30 every day, and the normal operation is carried out under the seaworthy state at other times. The annual amount of imported cement

in Guangdong Province is about 25 million tons, most of which are Guangxi cement , and Xijiang is the key channel for Guangxi cement to export to Guangdong market. With lock maintenance and limited shipping, the impact of Guangxi cement on the Guangdong market has declined, and the Guangdong market has recovered.

Second, the kiln was shut down during the Spring Festival, the supply of cement declined and the inventory was low.

According to the notice of relevant documents issued by Guangdong Cement Association, from January 1 to April 30, 2024, all clinker production lines will regularly stop kilns for 40 days per kiln. During

the Spring Festival, most manufacturers in Guangdong carried out production line maintenance, cement supply declined, and the current inventory is low.

Third, driven by the rising prices in the surrounding markets, cement enterprises in Guangdong have a strong willingness to raise prices. According to

China Cement Market Data Center, since February 17, most leading enterprises in Guangxi have notified an increase in the price of bagged cement by 20 yuan/ton, and some enterprises have simultaneously increased the price of clinker by about 20-30 yuan/ton.

Guangdong and Guangxi markets are closely linked, and the rise in cement prices in Guangxi has brought price expectations to Guangdong cement enterprises.

But overall, since the beginning of this year, although the market has a strong atmosphere of price increases, most projects have not yet started after the festival, and the market demand is still weak. The trend of Guangdong cement market in 2024 is still unknown.

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