At present, the cement industry in Fujian Province is facing a serious contradiction between supply and demand, which is undoubtedly highlighted by the sharp decline in cement production in 2023. According to the data of China Cement Network, in 2023, the cement output of Fujian Province was 81.2 million tons, down 17% from the same period last year, which indicates that the cement industry in Fujian Province is in a difficult situation of weak demand and overcapacity.
In response to this situation, a senior person in the cement industry in Fujian Province pointed out that the industry should not continue to rely on peak staggering production as a shelter, but should take the initiative to adopt market-oriented means to eliminate backward production capacity with high energy consumption and low efficiency through market competition, so as to fundamentally solve the persistent problem of overcapacity.
He expressed his support for the promotion of industry reshuffle through price war: "Only by fighting can we be healthier." He believed that although moderate market competition would bring "labor pains" to enterprises in the short term, in the long run, short-term and intense market competition would help the industry to quickly eliminate backward production capacity and leave more competitive advanced production capacity.
Especially when referring to the foreign cement giant Conch Cement , which occupies about 15% of the market share in Fujian Province, the person said that although Conch Cement imports about 12 million tons of cement into Fujian market every year, which puts pressure on local enterprises in Fujian, it is a benign stimulus. It can not only promote the transformation, upgrading and technological innovation of cement enterprises in Fujian Province, accelerate the withdrawal of backward production capacity from the market, but also help to reduce the total carbon emissions of Fujian cement industry as a whole in view of the advanced production and environmental protection level of Conch Cement.
For the future outlook, the senior person is not optimistic, he said that "more difficulties than opportunities", and said that the price war in Fujian cement industry will continue to deepen, now is not the bottom of the industry, enterprises need to be prepared to meet greater challenges.
He stressed that in such an environment, only by establishing their own unique advantages, that is, having their own "fist" products or technologies, can enterprises gain a firm foothold and find a way out in the fierce market competition. This means that Fujian cement enterprises not only need to reduce the cost of cement, but also need to strengthen technological innovation, improve energy efficiency, expand the industrial chain and other dimensions of transformation and upgrading, and ultimately jointly achieve high-quality and sustainable development of Fujian cement industry.
Cement industry has serious overcapacity, the impact of peak staggering production on the supply side has declined significantly, the "competition and cooperation relationship" formed over the years has broken down, and the pressure of industry operation has doubled. How should the cement industry get out of the predicament and face the new cycle?
On March 28-29, China Cement Network will hold the " 13th China Cement Industry Summit and TOP100 Award Ceremony " in Hangzhou, during which awards will be given to top 100 cement and supplier enterprises, and experts and scholars will be invited. China Railway and other construction units jointly discuss the new development trend of the cement industry in the future, and work together to create the future!
