China Cement Network show that since 2022, cement market prices in Fujian Province have continued to decline, and by 2023, this trend has not been reversed. Last year, Fujian's cement production and sales fell by 17%, reaching only 81.2 million tons, far below the average level of about 100 million tons in recent years. Fujian cement industry as a whole showed a clear trend of falling volume and price, and most cement enterprises fell into a loss state.
Generally speaking, the main reason for the decline in volume and price in Fujian Province in 2023 is the sharp contradiction between supply and demand.
On the demand side, the person in charge of a cement enterprise in Longyan admitted that the terminal market demand for cement in Fujian was weak last year. In order to seize market share among enterprises, the competition in the cement market in Fujian was white-hot, and the price war was everywhere. On
the supply side, a senior industry insider in Fujian pointed out that the effect of peak staggering production policy has been significantly weakened in the current environment, the problem of overcapacity has become increasingly serious, and the contradiction between supply and demand has become more acute, which has intensified the overall operational pressure of the industry.
At the same time, the impact of foreign cement also makes Fujian cement market worse. According to local cement enterprises, Conch Cement imported about 12 million tons of cement to Fujian Province in 2023, accounting for about 15% of the market share in Fujian Province. And with its cost advantage of forty or fifty yuan per ton, it has caused great pressure on local cement enterprises.
Of course, there are also individual enterprises in such a severe situation, relying on their own unique business strategy in Fujian cement market "unique". A private enterprise in Fujian revealed that after a rebound in sales in August and September 2023, production and sales increased at the beginning of this year, thanks to the continued promotion of some key projects.
When it comes to this year's market situation, enterprises in Fujian Province are generally pessimistic. A person in charge of a
private enterprise said: "Fish and bear's paw can not be both", in the environment of shrinking market demand, sales and profits are difficult to maximize at the same time. Another cement enterprise is worried that most of the projects this year will be slowed down due to the shortage of capital flow. According to its disclosure, the phenomenon of project projects in the province is rampant, and the debt situation is serious. This Spring Festival, the enterprise's accounts receivable recovery is less than 20%. A senior person in
Fujian cement industry said that "there are more difficulties than opportunities" in 2024, and said frankly that the price war in Fujian cement industry may intensify, and now it has not touched the bottom of the industry, enterprises need to be prepared to meet greater challenges.
So how can Fujian cement enterprises meet the difficult 2024? The person in charge of a cement enterprise in Longyan said that in the case of limited "bread", it is more necessary for enterprises to establish the concept of giving priority to the interests of the industry to ensure their sustainable operation and reasonable profit margin. The above-mentioned senior personages also pointed out that enterprises should recognize the current situation, market competition is inevitable, and in the future, they should stick to the blade inward, prepare for hard work, and fight against future market competition by enhancing core competitiveness and differentiated development strategies.
It is understood that in 2023, the output of the cement industry dropped by 5%, the revenue dropped by 21.5%, and the total profit was only 30 billion yuan, a year-on-year decline of more than 53%.
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. China Cement Network helps the upstream and downstream enterprises in the cement industry chain to strengthen cooperation and cooperation from the perspectives of supply, demand, macro-economy, technological progress and industrial upgrading, and jointly promote the cement industry to 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!
