China Cement Network, since April this year, especially after the end of May, the price of cement in Sichuan has fallen sharply. By mid-July, the price of cement in Sichuan has fallen by about 70 yuan/ton compared with the beginning of April.
Recently, when communicating with China Cement Network, local professionals said that the downward trend of cement prices in Sichuan is mainly due to three factors:
1. Under the background of declining demand in some areas of Sichuan, there are still enterprises demanding quantity and fierce market competition, which affect market stability.
2. The surrounding cement market has a greater impact on Sichuan, especially the low-price cement in Chongqing has a greater impact on the East Sichuan market. According to the industry, the ex-factory price of P.O42.5 cement from Chongqing to Sichuan was once reduced to 170-180 yuan/ton.
3. Staggered production. First, the cement industry in Sichuan Province has different opinions on how to implement peak-shifting production after supplementing production capacity; second, there are many peak-shifting production reduction and exemption policies in Chongqing.
However, the above-mentioned industry insiders said that although the downward pressure on cement prices in Sichuan in the past two months or so was greater and the industry faced more challenges, the overall price level was better than last year, thanks to the anti-involution results in the fourth quarter of last year. In addition, after this wave of price decline, the competition in the industry is gradually returning to rationality. At present, the off-season market will fluctuate. It is expected that the cement market in Sichuan will return around September.
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