China Cement Network Market Data Center News, April 24, the Henan region again notified an increase in cement prices of about 20 yuan/ton. However, the current sales volume is 4-5% of the normal, and the demand is still low. After the opening of the kiln in early April, the cement clinker inventory of the enterprise has increased, and the implementation of the price increase remains to be observed. Henan cement prices have risen and fallen five times in
a month, as
interesting as "playing" is that, taking into account the current round of price increases, Henan cement prices have risen and fallen five times in a month.
On March 25, after the "rise and fall" on March 17, the price of Henan cement increased by 50 yuan/ton for high-standard cement in the region, and 30 yuan/ton for Zhoukou, Shangqiu and Anhui.
On April 7, as cement enterprises opened kilns one after another and supply recovered, but demand was weak, it was difficult for cement prices to rise, and cement prices in the whole province fell back to the level before the last round of price increases.
On April 11, Henan continued to raise the price of high-standard cement by about 50 yuan/ton, and some of the cross-regional notifications with Anhui raised the price by about 20 yuan/ton. The low-standard cement was adjusted by the factories themselves according to their own conditions, and the increase was not uniformly stipulated.
On April 18, after the opening of the kiln, the supply recovered, the market demand was poor, and the prices of individual enterprises did not rise, so the last round of push up has basically been withdrawn, and the prices have fallen back to the level before the rise.
On April 24, the Henan region again notified an increase in cement prices by about 20 yuan/ton. The problems faced by
Henan cement industry are quite complex, and one or two sentences are not clear. Simply speaking, the contradiction between supply and demand is sharp and the difficulty of coordination is great.
1. The supply and demand structure is seriously unbalanced. According to the big data of
China Cement Network, as of 2024, the clinker production capacity of Henan Province is 93.5456 million tons (only the design capacity, without considering the overproduction situation), the actual demand for clinker is only 50.38 million tons, and the utilization rate of clinker production capacity is only 53.86%. If overproduction is included, the actual capacity utilization rate may be only about 40%. How much excess cement production capacity is there
in Henan? Local practitioners have a saying that "Henan Tianshan Cement, ranked first, and Tianrui Cement, ranked second , do not produce throughout the year, and the remaining enterprises can meet the needs of the whole province". According to the statistics of China Cement Network, the total production capacity of Zhonglian Tongli and Tianrui Cement accounts for 55.18% of Henan Province.
From the demand point of view, Henan cement market relies heavily on real estate support, local enterprises said that about 50% of Henan cement market demand comes from the real estate market, and in Zhengzhou and other places, the pulling role of real estate accounts for nearly 60% of local cement demand. Nowadays, the house is not sold well and the funds can not be returned, which further limits the demand.
Henan is a province with a large population, and the peak period of real estate development has brought a large demand for cement, but with the decline of real estate heat, its "counter-attack" on the cement industry is also quite fierce.
From the specific data, Henan cement demand has been declining for many years, with a decrease of 31.42 million tons in 2024 compared with 2022, a decline of 27.46%.
2. Synergy is extremely
difficult. If we only look at the decline in cement demand, it is not the most "fatal". After all, there are many provinces with a larger decline in domestic cement demand, but Henan is still facing the problem of synergy.
On the one hand, Henan cement market structure is chaotic, "Big Brother" Henan Tianshan, "Second Brother" Tianrui Cement, although the total production capacity accounts for more than 56%, but after the ranking of medium-sized enterprises, the production capacity is not small, and the competitiveness is strong, and has a strong voice in the regional market.
Taking a local cement enterprise as an example, the clinker production capacity is 4.805 million tons, including two 5500t/d production lines (put into operation in 2017) and one 4500t/d production line (put into operation in 2011), relying on the advantages of mines, technology, resources and other aspects, with low cost and good quality. It is not only highly competitive in Zhengzhou and other core markets, but also can still occupy the market initiative when sold to Shandong market.
On the other hand, in the past few years, supported by the demand for cement in the high platform period, Henan Cement has achieved better industry profits by relying on effective coordinated kiln shutdown. Nowadays, in the face of the downward trend of market demand, some enterprises have not recognized the reality, and still adopt the previous set (let large enterprises rush ahead to raise prices, and pick up leaks in the back). The result is that large enterprises can not retreat, small and medium-sized enterprises are constantly moving, and the market is becoming more and more chaotic.
In the words of a local industry figure: "In the past few years, when demand was at a high plateau, large enterprises made some concessions, small and medium-sized enterprises took advantage of the market, and everyone turned a blind eye, but now the decline in demand is too serious, large enterprises have no market to make concessions, small and medium-sized enterprises still adhere to the original routine." How can market be stable?
In the final analysis, Henan cement prices fluctuate, the core is the lack of support, perhaps the appropriate "fight" industry can be more sober.
In the current uncertain, complex and severe cement market, "carbon emissions" is just like a key key, which is likely to become an important breakthrough to help the cement industry move forward steadily and achieve high-quality development. In order to accelerate the realization of the "double carbon target" and actively promote the green and high-quality development of the industry, China Cement Network will hold the "2025 China Cement Double Carbon Conference and the 13th Energy Conservation and Environmental Protection Technology Exchange Conference" on May 27-28, 2025. At the same time, the release ceremony of "2025 ESG Ranking List of Cement Industry" was held . This conference will bring together industry elites and multi-resources to provide all-round support for the industry in terms of technology, policy landing and resource docking.
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