Cement Net Exclusive: Ideological Confusion Leads to the Loss of Synergy Foundation in the Cement Industry, Cement Prices Are Likely to Be Low Early Next Year

At present, the domestic demand for cement has entered a downward cycle, and the demand for cement will decline rapidly in the next few years. At this stage, it is particularly necessary for the industry to unify its thinking and jointly respond. However, some current phenomena and practices may bring serious consequences to many enterprises, thereby affecting the future pattern of the cement industry:

First, ideological confusion leads to the internal division of large enterprises in the cement industry and the loss of the basis for synergy, which is the main factor for the sharp decline in the efficiency of the cement industry in the second half of this year;

2. Due to the lack of synergy foundation next year, it is expected that the price of cement industry will be low from the beginning of the year, and the competition will be more intense;

3. Even if the production according to the approved capacity can be implemented, the excess of cement will still be more than 30%, and there will be no synergy, and the competition in the industry will be fierce;

Fourth, some enterprises in the industry want to change the pattern of the cement industry by amending the rules, which has angered the enterprises with strong competitiveness such as conch, and will inevitably make the enterprises with strong competitiveness give up synergy and adopt complete competition to eliminate production capacity.

Therefore, this rule adjustment may develop in the opposite direction of the main promoters, but accelerate the withdrawal of enterprises with weak competitiveness, and also make the industry really accelerate integration and achieve high-quality development. Since September

this year, C8, leaders of large enterprises and sales managers have reached a consensus on peak staggering and price recovery at least ten times, basically because Hubei failed to reach a consensus and failed, wasting valuable opportunities to improve the efficiency of the national cement industry. For example, the consensus reached at the C8 Nanning Conference on peak staggering and price recovery in December has not been implemented in Hubei so far, making the national cement benefits in the fourth quarter of this year possibly the worst over the years.