In February, the domestic concrete market was in the recovery stage after the festival. Affected by the low rate of funds in place, the return of downstream workers and the start-up time of construction sites are generally delayed compared with the same period in previous years, the growth of concrete shipments is slow, and the market off-season atmosphere is strong. In terms of cost, the confidence of upstream raw material enterprises is weak, the price trend is disorderly at the beginning of the year, and the actual support for concrete prices has weakened. Overall, the supply and demand of the domestic concrete market was relatively flat in February, and the price focus declined further.
By the end of February, the national concrete price index had closed at 314.46 points, down 4.46% from the end of January and 19.13% from the same period last year.
In February, from the average price of concrete in 30 provinces and cities, prices fell in 26; prices rose in 2.
Table: Average Price and Change of C30 Ready-mixed Concrete in 30 Provinces and Cities in China in February (yuan/m3,%)
Data Source: Cement Big Data (https://data.ccement.com/)
In March, the northern market will gradually start from the off-season. Demand has increased slightly compared with the previous period. The increase in precipitation in the southern region is not conducive to the development of construction activities, coupled with the limited feedback from enterprises on new orders, it is expected that the recovery of market demand is still relatively slow, and it is difficult to return to normal levels in the short term. In terms of cost, the inventory of upstream raw materials is at a low level over the years, and the willingness of enterprises to stand up is increasing, which is expected to bring some pressure to concrete enterprises. Overall, the contradiction between supply and demand in the domestic concrete market is still prominent in March, but with the strengthening of cost support, it is expected that the actual transaction focus will gradually stabilize.
