Duan Zhenhong, Chairman of Shanghai Cement Industry Association, Secretary of the Party Committee, President and Director of Southern Cement: Continue to deepen the industry coordination and self-disc

Recently, the chairman of Shanghai Cement Industry Association,

The following is the original text of the speech:

Dear leaders, directors, and member representatives:

Hello!

First of all, on behalf of the Shanghai Cement Industry Association, I would like to extend a warm welcome to the leaders of the Political Research Office of the Municipal Housing and Construction Commission, the Building Materials Department and the Community Department of the Civil Affairs Bureau who have come to this conference to guide the work! I would like to extend my sincere greetings to the leaders of the brotherly trade associations present at the meeting! Ccement. Com/file/news/20260629/6a41c621dc4486615180. Faced with the complex and severe industry situation, the association has always adhered to the purpose of "service, coordination, guidance and self-discipline", focusing on the main line of industry development, cultivating the main responsibility, and firmly promoting the key work. The phased results are mainly reflected in five aspects: First, we should strengthen the leadership of Party building and consolidate the foundation of the association's compliance operation. In strict accordance with the Regulations of Shanghai Trade Associations and Chambers of Commerce, 20 internal management systems have been systematically revised and improved, and a standardized and standardized system management system has been established to ensure that the work of the association is carried out in a legal, efficient and orderly manner. Second, deepen industry self-discipline and standardize market operation order. In view of the disorder of disorderly competition in the industry, a proposal to resist disorderly low-price competition was issued for the whole industry. Regularly carry out market visits and research,

The above achievements can not be separated from the careful guidance of the competent government departments at all levels and the strong support of all sectors of society, the active participation and full cooperation of all directors and member units, and the diligence, pragmatism and due diligence of the full-time and part-time staff of the Secretariat of the Association. Here, on behalf of the Council of the Association, I would like to express my heartfelt thanks to all the leaders, colleagues and member representatives who have long cared about and supported the construction of the Association and the development of the industry! The Secretariat of the Association is streamlined and efficient, and has completed the work of membership management, conference activities preparation and daily service of enterprises. The board of supervisors shall perform its supervisory functions in accordance with the law and regulations, strictly carry out decision-making supervision, compliance review and financial supervision, and ensure the standardized and healthy operation of the association in an all-round way. At the same time, the industry team continued to grow, with 18 new member units added this year, and the industry cohesion, influence and credibility of the association steadily improved.

Just now, the General Assembly deliberated and adopted the work report of the Council, which clearly defined the four core tasks of this year: first, improve the mechanism of collaborative governance and improve the long-term system of self-discipline; second, deepen the traceability management of product quality and comprehensively standardize the order of cement transfer and circulation; third, rely on the construction of standard system to accelerate the green high-end transformation of the industry; Fourth, optimize the precise membership service and consolidate the support of high-quality development of the industry. I fully agree that the overall work deployment is clear in thinking, precise in targeting, in line with the actual situation of the industry, and highly in line with the development demands of the majority of member enterprises. Subsequently, the Council will coordinate and refine the annual work arrangements, and the tasks will be handed over to the Secretariat and the special committees one by one.

Based on the current macroeconomic situation, industry operation situation and future development trend, I would like to add five suggestions to discuss and exchange with you:

First, recognize the grim situation of industry development, enhance the sense of urgency

of green low-carbon transformation, and the downward pressure of the industry continues to overlap. The characteristics of market pressure are very obvious. From January to May 2026, the total consumption of cement in Shanghai was 6.2463 million tons, down 8.3% from the same period last year; From the perspective of upstream and downstream industrial chain, the new construction area of real estate in China decreased by 22% from January to April compared with the same period last year, the output of commercial concrete in Shanghai decreased by 14% compared with the same period last year, and the downstream demand for infrastructure and real estate continued to shrink. At the same time, the cost of core raw materials such as coal has risen sharply, the average price of coal has risen to 840 yuan/ton, up 35% year-on-year, the production cost of enterprises has continued to rise, and the profit margin has been compressed. Under the two-way squeeze of shrinking demand and rising costs, the pressure of industry development continues to increase, and it is an urgent and inevitable choice to comprehensively promote energy conservation, carbon reduction, green transformation and upgrading. Member enterprises should raise their ideological awareness, take the initiative to seize the window period of transformation, speed up structural adjustment and kinetic energy conversion, and consolidate the foundation for long-term development.

2. Continuously deepening the industry's collaborative self-discipline and resolutely curbing the vicious competition

of low-price involution and disorderly low-price competition are the core pain points and the biggest obstacles restricting the healthy development of the industry. Blind price reduction among enterprises not only reduces their own survival profits, but also disrupts the overall industrial ecology and lowers the bottom line of product quality. Next, the association will take the initiative to dock with the competent authorities, strictly implement the relevant work requirements for the regulation of market order in the industry, and continue to deepen the construction of industry self-discipline. Here, I propose that all member enterprises strictly abide by the industry self-discipline convention, adhere to the bottom line of product quality, practice the management concept of high quality and high price, and work together to maintain a fair and orderly market environment. Subsequently, the association will jointly study and formulate a legalized, landing and enforceable industry co-governance and enterprise self-discipline mechanism, curb vicious competition from the source of the system, and jointly safeguard a fair, just, standardized and orderly industry market environment.

3. Fully implement product quality traceability management and strictly adhere to the bottom line

of engineering building materials safety. The cement product quality service system independently built by the Association has been officially put into operation, providing digital support for industry quality control and traceability supervision. Member units and upstream and downstream cooperative enterprises in the industrial chain should pay more attention to and actively dock with each other, speed up the progress of system access, actively complete data docking, realize the interconnection with the traceability platform of municipal engineering materials, and achieve the authenticity and integrity of transaction data, the standardization of circulation links, the real-time traceability of product flow, and the clarity of quality responsibility. Build the red line of quality and safety of construction materials by digital means, and fully guarantee the quality of urban construction projects.

4. Grasp the policy dividend window period and accelerate the pace of

green low-carbon innovation and upgrading. During the "15th Five-Year Plan" period, the core direction of cement industry development will focus on the four areas of "energy saving and carbon reduction, intelligent manufacturing, urban renewal and green building materials". As the first year of the plan, the state and Shanghai have issued a number of supporting policies for the green transformation of the industry. Shanghai issued the Action Plan for Accelerating the Creation of an International First-class Business Environment in the Field of Engineering Construction, which clearly put forward such key measures as rectifying the low-price volume of the industry, establishing an abnormal low-price identification and disposal mechanism, promoting AI digital engineering services, and promoting the construction of intelligent construction sites. The Shanghai Cement and Cement Products Industry Development Report (2025) compiled by the Association also makes it clear that the green low-carbon building materials and industrial solid waste comprehensive resource utilization track contain broad development space. It is hoped that member enterprises will take the initiative to guide the benchmarking policy, increase investment in green technological transformation and low-carbon technology research and development, rely on technological innovation to seize the opportunities for transformation and development, and foster new growth momentum.

Fifth, consolidate the functions of the association as a bridge and link, and comprehensively improve the level

of professional services. The association will continue to optimize the ability of government-enterprise docking, industrial chain coordination, and precise service for enterprises, and give full play to the advantages of professional resources of various professional committees. Build a platform for consultation and cooperation of the whole industrial chain, such as cement, commercial concrete, prefabricated components and engineering construction, to promote the integration of upstream and downstream resources, complementary advantages and coordinated development, and enhance the overall value of the industrial chain. Regularly collect common problems and development demands of enterprises, timely feedback and coordination with competent departments, accurately relieve difficulties for enterprises, and earnestly act as "waiters" for enterprise development, "liaison officers" for government-enterprise communication, and "navigators" for industry development.

Dear colleagues, Shanghai Cement Industry Association is an industry platform for all members to build and share. Here, I would like to raise two hopes: First, I hope that the directors will play a leading role in demonstration, try first and set a benchmark in the key work of industry self-discipline and coordination, quality traceability and green low-carbon transformation, so as to drive all member units to develop in groups and move forward together, and jointly promote the high-quality development of the industry; Secondly, we hope that all member units will continue to care about and actively participate in the work of the association, actively participate in the activities of exchange and discussion, policy announcement and industry research organized by the association, actively make suggestions and suggestions, feedback market facts, reflect development demands, and work together to build a high-quality industry service platform with temperature, strength and responsibility.

At present, the cement industry in Shanghai is at a critical stage of structural optimization, transformation and upgrading, with both opportunities and challenges.