"This year, basically only half of the production capacity can be opened, and by September, the sales volume of our factory has dropped by 20% to 30%," said a local cement factory in Chongqing.
It is understood that due to the limited investment in infrastructure and the continued sharp decline in real estate investment, the demand for cement in Chongqing has declined significantly since this year, and the production and sales of most enterprises have declined by more than 20%.
Data show that from January to August, the investment in fixed assets in Chongqing increased by 1.3% year-on-year, down 1.9 percentage points from the same period last year, down 3.1 and 1.3 percentage points from the first quarter and the first half of the year respectively, and the investment in real estate development decreased by 9.9%. In terms of cement output, Chongqing's cement output from January to August was 30.0315 million tons, down 15.04% from last year, nearly 5 percentage points higher than that of the whole country.
The above-mentioned cement enterprises pointed out that under the current supply and demand situation of the industry, strict implementation of off-peak production is still the key to maintain the stable development of the industry. According to its introduction, the number of off-peak production days in Chongqing this year may reach nearly 200 days, about 20 days more than last year. However, from the implementation of this year, two key problems need to be solved to promote off-peak production.
1. Some small enterprises are not enthusiastic about participating. According to its introduction, large enterprises and some small enterprises in the region can strictly implement the peak-staggering production plan, but some small-scale cement enterprises, especially single-line enterprises, have poor enthusiasm for the implementation of peak-staggering production, which makes it difficult to implement the regional peak-staggering production as a whole.
2. The cement market in the Yangtze River Basin has become an indivisible whole due to the serious decline in demand and the reduction of shipping freight rates, and the off-peak production in a single province is difficult to play a sufficient supporting role in stabilizing the local market. From the perspective of the whole Yangtze River Basin, there are still differences in the number of days, time periods and enforcement of peak-shifting production among provinces. If the peak-shifting production plans of provinces in the Yangtze River Basin can not be effectively coordinated, the cement market will be difficult to stabilize.
The company also said that after the cement industry is incorporated into the national carbon emission market, it may restrict the overproduction and other issues, thus tightening the market supply to a certain extent, but how much effect it can achieve depends on the carbon quota of enterprises after the landing of carbon emission trading.
