On March 25, OCC Chairman Ma Weiping and his delegation visited Jiangxi Cement and were warmly received by Li Hechong, Party Secretary, Director and President of Jiangxi Cement. The two sides had in-depth exchanges on the 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%.
Ma Weiping suggested that in areas with high concentration, some small kilns should be shut down and clinker should be supplied by large cement groups. Conch, Huaxin and CNBM have occupied more than 40% of the market share in the Yangtze River Basin. OCC aims to unite small and medium-sized enterprises in the Yangtze River Basin and unite all parties to achieve market synergy. The purpose of OCC is to prevent involution, adhere to peak-shifting production and capacity reduction on demand, maintain the prosperity and stability of the Yangtze River cement industry, and achieve high-quality development. At present, the biggest problem is how to make small and medium-sized enterprises cooperate.
In the future, OCC will play a role in deepening industry self-discipline and cooperation, establishing and improving industry supervision mechanism, promoting industry mergers and acquisitions, and helping the healthy development of the industry. 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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