Tapai Group: The industry generally lost money in the first quarter

Recently, Tapai Group answered investors'questions about cement market demand and price.

Tapai Group said that data from the National Bureau of Statistics showed that from January to April, the cumulative cement output in China was 443 million tons, down 8.6% from the same period last year, an increase of 1.5 percentage points from January to March and an increase of 5.8 percentage points from the same period last year. In April, China's monthly cement output was 146 million tons, up 18.4% from the previous month and down 10.8% from the previous year.

The main reasons include: the growth rate of national fixed asset investment has turned from positive to negative, the growth rate of infrastructure investment has dropped rapidly, the pulling effect of infrastructure investment on cement demand has weakened, and the new construction of real estate is still in double-digit decline. The market generally underestimates the decline in demand, resulting in more intense competition. First-line real estate transactions recovered

in April, but it still takes time to transmit to cement demand. On the cost side, coal prices have risen recently, and the rise in oil prices has pushed up the cost of land transportation, which is under pressure as a whole. Despite the implementation of coordinated kiln shutdown in the industry, the decline in demand was even greater, resulting in a general loss in the industry in the first quarter. 25% of the

Company's production capacity is concentrated in Longmen, Huizhou, and the market covers Huizhou, Dongguan, Shenzhen and other Pearl River Delta regions; 75% of the Company's production capacity is concentrated in eastern Guangdong and Longyan, Fujian, and the market covers Shantou, Chaozhou, Jieyang, Shanwei, Meizhou, Heyuan, western Fujian and southern Jiangxi. The price of the market in eastern Guangdong is relatively stable, and the company has a high market share in eastern Guangdong. The price of cement in the Pearl River Delta market has a certain callback after the Spring Festival, and the follow-up depends on the rebound of demand, so as to have a basis for stabilizing the price.