Shangfeng Cement: The Trend of Optimizing the Structure of Supply Management and Control Becomes Clear in the Second Half of the Year

Recently, Shangfeng Cement released a record of investor relations activities, regarding the recent restrictions on overproduction in the cement industry issued by some provinces, the impact of supply-side control on the industry, and the industry trend in the second half of the year.

Shangfeng Cement said that the sustained development of supply-side policies is conducive to eliminating backward production capacity, optimizing production capacity structure and promoting the healthy development of the cement industry. Although the overall demand of the industry is declining, it shows a gradual narrowing trend. From the data of the first quarter of this year, the general loss of the industry in the first quarter of last year has been greatly improved. Recently, the policy level requires the investment side to exert its strength, and the issuance of ultra-long-term treasury bonds and local bonds has guaranteed the capital demand of infrastructure projects. The self-discipline consciousness of the industry against involution has been gradually improved and implemented; On the cost side, the gradual decline in the prices of coal and raw and auxiliary materials is conducive to the continuous optimization of costs. In addition, the resources, manufacturing and consumption terminals of the cement industry are mainly in the domestic market, basically not affected by the tariff trade war, so the overall development trend of the industry in the second half of the year is confident.