Rising costs and long-term market downturn push up cement prices in Hunan, Shaanxi and Guizhou

Recently, affected by the rising prices of raw materials such as coal, the pressure of production cost of cement enterprises has been accumulating, coupled with the low price of cement, the pressure of enterprise operation has intensified, and enterprises in Hunan, Shaanxi and Guizhou have launched a new round of price increase. The range is concentrated in the range of 30 to 60 yuan/ton, but the demand side is in a weak position, and the actual implementation is generally uncertain. Cement prices

in Hunan Province fell back to the bottom after a round of push up, and the profit margin of enterprises was continuously squeezed. With the dual impact of the implementation of peak-staggering production plans and the rising prices of raw materials and fuels in some enterprises, the operating pressure has further increased. In order to improve the level of profitability, enterprises in the province try to push up the price of cement substantially, the increase is expected to range from 30 to 60 yuan/ton, and there are some differences among enterprises. The cement market in Yulin area of

Shaanxi Province has been weak for a long time, the price has been at a relatively low level, and enterprises are generally under pressure. Leading enterprises in the region notified that the price of various types of cement would be raised by 30 yuan/ton from August 1. However, at present, the market demand in Yulin is not good, the acceptance of price increase by downstream purchasers is not high, and the actual landing situation of this round of price adjustment remains to be further observed. The price of cement

in Guizhou has been running at a low level for a long time, and the cost of raw materials has risen, and the pressure on enterprises has continued to increase. Since August 1, Guizhou medium-sized regional enterprises have notified an increase of 40 yuan/ton in cement prices. Affected by the differences in the market transaction environment, there are some differences in the actual implementation of the increase rate among enterprises, and some enterprises may adjust the implementation rhythm according to their own sales situation. At present, the terminal demand in the province is still in the traditional off-season, the downstream undertaking capacity is limited, whether this round of price increases can be fully implemented, the follow-up remains to be observed. The reasons for the price increase in the

three places are concentrated in the two aspects of low cost and low price, but the restriction of insufficient support from the market demand side is obvious, which means that the current round of price increase is difficult to fully land.