On March 25, Shao Jun, Chairman of China Cement Network, and his delegation visited Jiangxi Cement and were warmly received by Li Hechong, Secretary of the Party Committee, Director and President of Jiangxi Cement. The two sides had in-depth exchanges on enterprise development, market situation and development prospects of the cement industry.
Li Hechong first introduced part of the cement industry in Jiangxi Province. In 2024, the cement market sales in Jiangxi Province dropped by 25%. In the first quarter of 2025, Jiangxi Province plans to stop production for 50 days. Jiangxi's cement production capacity accounts for 25% of the Jiangxi market, and sales account for more than 10%. At present, the cement industry in Jiangxi Province is highly concentrated, with the top five enterprises accounting for 91% of the total market share.
Li Hechong said that the concentration of Jiangxi cement market is already high, but it is difficult for all parties in the market to reach an agreement. Given the downward trend of demand, how to promote consensus has become the biggest problem in the situation of imbalance between supply and demand. In the short term, the industry will go through a difficult process from production to capacity. However, Jiangxi Province has unique advantages, high industry concentration, and the top three enterprises in production capacity have a very high degree of cooperation. From a policy point of view, it is quite beneficial for enterprises to supplement their production capacity to the industry. If the policy is strictly implemented, the effective production capacity of Jiangxi Province will be reduced by nearly 10 million tons. In the implementation of off-peak production, it is necessary to accurately predict the market demand, comprehensively consider the inventory situation of enterprises, and then determine a reasonable off-peak time, the inventory level should not be higher than 50%.
Shao Jun pointed out that it is a good time for AI technology to promote innovation in various industries, and the emergence of Deepseek and ChatGPT also brings us new thinking. In the future, China Cement Network will continue to give full play to its professional advantages in the field of industry digitalization and provide all kinds of data for the industry. Recently, China Cement Network has grandly launched chatCEM, an exclusive artificial intelligence platform for the cement industry, to play a good role as an industry think tank and provide data support for the industry. Li Kunming, an analyst at the Cement Big Data Research Institute of
China Cement Network, made the latest cement research report. Li Kunming predicts that the national cement demand will be 1.7-1.73 billion tons in 2025, down by 5% -8%. Industry self-help has more advantages than disadvantages for leading enterprises. From the enterprise level, there are several points worthy of attention in 2025. 1. When the price continues to fall, it will generally have a negative impact on profits. 2. Some state-owned enterprises and central enterprises with higher costs will be the first to face major losses. 3. Some private enterprises will be in trouble, but more private enterprises can adopt a more flexible survival mechanism. 4. Cash flow is more important than profits. During the
exchange, the two sides agreed that they would further communicate closely in the future, actively explore the path of coordinated development in relevant business areas, and work together to achieve win-win cooperation. Hu Yanbo, Vice President of Jiangxi Cement, and Liu Bing, General Manager of Marketing Department of Jiangxi Cement also
participated in the exchange.
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