Henan Cement Industry: Cost Decline Improves Profit, Market Is Expected to Rise in the Fourth Quarter

first half of this year, the profitability of Henan cement industry has improved significantly, and the core driving force comes from the significant decline in coal prices. A

local cement enterprise disclosed that due to the dual effects of coal price decline and internal energy-saving and cost-reducing measures, the current cement production cost has dropped by about 30-40 yuan/ton compared with the same period last year, which effectively alleviated the previous profit pressure of the industry and injected positive momentum into the enterprise operation.

However, the industry is still facing severe challenges on the demand side. The company said that since this year, Henan cement demand has continued to show a downward trend, the overall market activity is insufficient, the contradiction between supply and demand has not been fundamentally alleviated, and the industry still needs to cope with the test of weak market demand in the short term.

For the fourth quarter of this year, the company said that the market is expected to gradually improve.

With the approaching of the traditional peak season of cement consumption and the upcoming launch of the peak-staggering production policy in Henan, the market supply will be reasonably regulated. It is expected that the cement market in Henan will gradually rise, and the industry is expected to enter the stage of improving the supply-demand relationship and further restoring the profitability level.