On April 9, China Resources Building Materials Technology issued a quarterly performance forecast, predicting a profit of about 100 million to 120 million yuan, compared with a loss of 28.9 million yuan in the same period last year.
China Resources Building Materials Technology attributed the performance turnaround mainly to two aspects, one is the increase in cement sales price compared with the same period in 2024, the other is the decrease in sales cost compared with the same period in 2024.
Earlier, Conch Cement also issued a first quarter performance forecast. It is estimated that the net profit attributable to the owner of the parent company in the first quarter of 2025 will be about 1.808 billion yuan, an increase of about 20% over the same period last year. It is estimated that the net profit attributable to the owner of the parent company after deducting non-recurring gains and losses will be about 1.650 billion yuan, an increase of about 20% over the same period last year.
Conch Cement attributed the sharp increase in performance to the decrease in product costs and the increase in sales volume. The
cost has dropped significantly and the price is higher than cost of the same period
. According to the big data of China Cement Network, since this year, the liquidation price of Qinhuangdao Power Coal (Q5500) has shown a downward trend. From 775 yuan/ton at the beginning of the year to 677 yuan/ton at the end of March, the decline was nearly 100 yuan/ton, and the average price in the first quarter was 728.11 yuan/ton . At the beginning of 2024, the price of Qinhuangdao steam coal (Q5500) was 933 yuan/ton including tax, 840 yuan/ton at the end of March, and 913.07 yuan/ton in the first quarter of 2024. Coal prices in the first quarter of
this year were about 185 yuan/ton lower than same period last year. Coal consumption per ton of clinker is 125 kg of physical coal. Based on the average price of coal in the first quarter, the reduction of coal will reduce the production cost of clinker by about 23 yuan/ton and the cost of cement by about 15 yuan/ton. In terms of
price, big data from China Cement Network show that cement prices have a relatively high starting point this year , thanks to the "tail-warping" market at the end of 2024. At the beginning of January, the national cement price index was 396.18 points, 51.99 points higher than same period last year. By the end of March, the national cement price index was 385.81 points, 64.48 points higher than same period last year.
Specifically, the average price of cement in the first quarter of 2025 is about 46 yuan/ton higher than that in 2024.
From the perspective of the national cement industry, in the first half of last year, domestic cement enterprises faced a sharp decline in demand, lacked sufficient psychological preparation, and had a strong sense of panic, which led to frequent price wars. In addition, in the second half of 2023, the price of cement "dived", the "tail-warping market" failed at the end of the year, and the price of cement started at a low level. In the first half of last year, the price of cement was depressed as a whole, resulting in a loss of the whole industry. In the second half of
2024, after fighting in the first half of the year, enterprises in the industry began to re-examine the market situation, and the competition tended to be rational. At the same time, thanks to the proposal and promotion of "anti-involution", the cement market gradually stabilized and rebounded. Especially in the fourth quarter, domestic cement prices have recovered significantly, laying a solid foundation for the start of this year.
From the perspective of enterprise strategy, at the beginning of last year, in the face of declining demand, domestic cement enterprises, including some leading enterprises, put stability and market share in a prominent position in their work reports at the beginning of the year. The industry is full of "gunpowder". In contrast, at the beginning of this year, the work reports of major enterprises at the beginning of this year did not focus on market competition and share promotion, but more on stabilizing the situation, anti-involution and increasing efficiency , and the mentality of enterprises in the industry has changed significantly.
Overall, domestic cement demand will continue to decline this year, but thanks to "anti-involution" and changes in industry mentality, coupled with cost reduction, the profitability of the cement industry may improve .
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