The total profit of 2024 cement may be around 16 billion yuan (excluding non-cement business such as aggregates and overseas profits).

2024, affected by the continuous bottoming of real estate investment, the decline of infrastructure highway and municipal investment, the demand for cement continued to decline last year, the output of cement hit a new low since 2010, the contradiction between supply and demand continued to intensify, and the focus of cement price continued to move down. In terms of

price, in 2024, the national cement price trend showed the characteristics of "first decline, then rise, low rise". Although the second half of the year turned positive and maintained the rising trend, the overall focus was still downward. By the end of December, the average price of P.O42.5 bulk cement was 395.23 yuan/ton, up 14.89% from the beginning of the year. Up 14.83% year on year. In terms of

cost, in 2024, the overall price of thermal coal fluctuated downward, the average price was lower than same period, and the production cost pressure of cement enterprises eased. The annual average spot price of thermal coal was 865.44 yuan/ton, down 10.96% from the same period last year.

Overall, the demand for cement declined significantly in 2024. Although the overall decline in coal prices reduced the pressure on production costs, the average price of cement declined and the profits of the cement industry continued to shrink. Cement Big Data Research Institute estimates that the total profit of the cement industry in 2024 will be around 16 billion yuan (excluding non-cement business such as aggregates and overseas cement profits).

Figure: The total profit of the cement industry is expected to drop by nearly half

in 2024 Data source: Cement Big Data (https://data.ccement.com/)