Huaxin Building Materials: Under the guidance of the policy, it is expected that the industry will be further integrated and centralized in the future.

Recently, Huaxin Building Materials said in an investor survey that the current domestic supply-side reform is entering the stage of deepening implementation. In 2024, the state has explicitly required enterprises to produce in strict accordance with the approved and filed production capacity.

Despite the pressure on the industry and the weak market price at this stage, this trend may continue, but under the guidance of the policy, it is expected that the industry will be further integrated and centralized in the future.

The state has planned the control path as a whole and delineated the red line of law and capacity control. In order to ensure the implementation of the norms, the follow-up is expected to promote enterprises to install capacity and emission monitoring equipment, which will promote the whole market operation mechanism to become more standardized and transparent.