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
cement industry, the rise and fall of price war has become a thing that enterprises have to face when they 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 in the price war, the more sober we should not be at the expense of quality, even if only a little bit. 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. As far as
enterprises are concerned, they should adhere to the red line of not dumping at a price below cost, disrupting the normal order of production and operation, harming the interests of the state or the legitimate rights and interests of other operators in order to exclude competitors or monopolize the market, and participate in market competition under compliance. Keep in mind that quality is the foundation of sustainable development of enterprises. We must strictly enforce the compulsory national quality standards and never pursue short-term market share at the cost of lowering quality requirements, which is tantamount to drinking poison to quench thirst and completely destroying ourselves.
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 insisting on quality first in the market competition, can cement enterprises stand firm and survive in the fierce market competition!
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