Yangtze River Delta Cement Price Rise Causes Controversy, Contradiction between Supply and Demand Becomes the Focus of Attention!

Market news shows that major clinker line enterprises in the Yangtze River Delta region plan to shut down kilns for about 12 days in June, while clinker prices announced an increase of 30 yuan/ton. Affected by this, many places in the Yangtze River Delta set off a wave of high standard bulk cement prices .

Since June 5, some leading enterprises in Shanghai have issued a notice to increase the price of high-standard bulk cement by about 30 yuan/ton; on the same day, Nanjing, Yangzhou, Taizhou, Nantong, Suzhou, Wuxi, Changzhou and other regions in Jiangsu have followed up, trying to promote the price increase of high-standard bulk cement by 30 yuan/ton, and the surrounding markets are expected to join the ranks of price increases; Some leading enterprises in Zhejiang also tried to push up the price of high-standard bulk cement by 30 yuan/ton on June 5.

However, the rise in cement prices has caused many doubts in the market. In June, the Yangtze River Delta region not only ushered in the special period of high school entrance examination, but also encountered continuous rainy weather. Many insiders believe that it is unreasonable to raise the price of cement in this context.

From the perspective of supply and demand, the rise in cement prices is mainly due to the tightening of supply caused by the shutdown of kilns, but the demand side is facing heavy pressure. Continuous rain weather brought inconvenience to the construction, during the entrance examination, some construction sites in order to avoid noise affecting candidates, the construction progress slowed down significantly, the market demand performance is relatively weak, it is difficult to support the increase in cement prices. As an industry insider said: "Whether the price increase can be implemented depends on whether the kiln shutdown plan can be effectively implemented.". If the kiln is stopped and discounted, the price increase is just a flash in the pan.

Face this to rise in price disturbance, industry expert also expressed to be anxious: "Pure for rise in price and rise in price, to industry long-term development is harmful." At a time when the development of the industry is facing difficulties, enterprises and industries should focus on the core issues, take decisive measures to promote capacity optimization, and promote the industry out of the predicament through real capacity removal actions.