China Cement Network Market Data Center monitoring shows that since June, the cement market in Ningxia has been in a deep downturn, and the industry competition has become white-hot. In order to stabilize the market share, some enterprises continue to reduce the quotation by reducing the production cost, and the price of P.O42.5 bulk cement of some manufacturers is the historical bottom of 150 yuan/ton.
In this vicious circle of "unsalable price increase, price reduction and fall", the price adjustment space of enterprises has been severely compressed, and the operating pressure is increasing day by day. What is more noteworthy is that the large outflow of low-priced cement in Ningxia, like a huge stone thrown into a calm lake, has caused ripples in the surrounding regional market, further intensifying the tense atmosphere of industry competition and making the future market trend full of unknowns.
Ningxia's predicament is not an example. From the end of April to the beginning of May this year, price wars broke out one after another in many cement markets across the country. Data show that at the end of May, compared with the beginning of January, cement prices in only four of the 31 provinces in China rose against the trend, and prices in many regions fell below the 200 yuan/ton mark , and the downward trend of prices has become a prairie fire. Under the background of serious overcapacity in the
current cement industry, price war has become an inevitable choice for enterprises to participate in market competition. When market supply far exceeds demand, in order to compete for limited market share, price reduction competition is the most direct and effective means in the short term, and it is also an unavoidable reality in the current and future development of the industry.
However, the more fierce the price war is, the more important it is to build a strong quality defense line. As an important basic building material, the quality of cement is directly related to the safety and life of construction projects, and can not tolerate any carelessness.
For enterprises, price war is a necessary means of survival and breakthrough, but quality is the fundamental of long-term development, we must strictly implement the national quality standards, must not sacrifice quality for the pursuit of short-term interests, otherwise it is tantamount to drinking poison to quench thirst.
Market supervision departments need to take the initiative to increase supervision and punishment, crack down on jerry-building, sub-optimal and other irregularities, and create a good environment for fair competition in the industry. Users should also enhance quality awareness, do a good job in cement quality inspection and sample retention, find problems and safeguard rights in time, and force enterprises to attach importance to quality through practical actions.
Only by sticking to the bottom line of quality in the price war and realizing the dual-track parallel of price competition and quality improvement, can cement enterprises break through the predicament and usher in a new life in the fierce market competition!