According to China Cement Market Data Center, some major enterprises in Guanzhong area of Shaanxi Province have recently notified an increase in cement prices by 30 yuan/ton. China Cement Network investigated some enterprises in Guanzhong and verified the price increase information with them.
"The price increase has basically been implemented." A cement company in Xianyang told China Cement Network, "The reason is that there are both supply and demand factors." On
the supply side, the kiln was shut down at the wrong peak, and the inventory pressure of enterprises slowed down.
According to the Notice of Shaanxi Province on Staggered Production of Cement Industry in 2023-2024, all cement clinker production lines in Shaanxi Province will carry out staggered production in winter from 0:00 on December 1, 2023 to 24:00 on March 10, 2024. Staggered peak shutdown brought about supply reduction, and the inventory pressure of cement enterprises slowed down. On the
demand side, the project is advancing, and the two carriages of real estate and infrastructure construction work together. In terms of
real estate, Shaanxi Province actively implements the coordination mechanism of real estate financing, which is conducive to supporting the reasonable financing needs of real estate projects and promoting the steady and healthy development of the real estate market. In terms of infrastructure construction, there will be 1282 provincial key "four in one batch" projects in 2024, including 247 infrastructure projects with a total investment of 1.38 trillion yuan. Xi'an Xianyang International Airport Phase III expansion (total investment of 47.6 billion yuan), Yan'an-Yulin High-speed Railway (total investment of 47.2 billion yuan), Hanjiwei Phase II (total investment of 19.9 billion yuan), Xi'an East Railway Station (total investment of 16.4 billion yuan) and other projects continue to advance. The two carriages of real estate and infrastructure construction work together to drive the demand for cement to pick up.
Guanzhong is the leader of Shaanxi's three major regions, namely, northern Shaanxi, Guanzhong and southern Shaanxi, and the economic center of Shaanxi Province. Most of the cement demand and clinker production capacity in Shaanxi Province are also concentrated in Guanzhong area. According to the statistics of China Cement Network, Shaanxi clinker production lines are mainly built in Tongchuan City, Baoji City, Weinan City and Xianyang City, and the clinker production capacity of the four cities accounts for about 78% of the province's total.
Talking about the view of Shaanxi cement market in 2024, a cement enterprise expects that the market situation will improve in the second half of this year with the landing of the project. However, some enterprises said that 2024 will continue the downturn in 2023, the overall demand will still be insufficient , and the industrial structure will be further adjusted.
At present, the national market demand is shrinking and the profitability is weakening. How should cement enterprises spend their time? What challenges and opportunities will we face in the future?
On March 28-29, China Cement Network will hold the " 13th China Cement Industry Summit and TOP100 Award Ceremony " in Hangzhou, which will invite experts and scholars, China Railway and other construction units to discuss the new trend of future cement industry development and cohesion. Create the future together! At the meeting, Li Kunming of Cement Big Data Research Institute will give a brilliant speech on the development trend of the cement industry. Sign up quickly!
