[Weekly Review] North China: Kilns in Inner Mongolia will be shut down for no less than 20 days in July except in the eastern part of Inner Mongolia

2017-07-03 11:20:16

According to the China Cement Network Market Data Center, kilns in central and southern Hebei and Shanxi in North China began to be shut down in summer last week, and more than 70% of enterprises are expected to stop production as planned. Affected by this, cement prices in the North China market remained stable. Recently, the market demand in Beijing, Tianjin and Hebei has weakened, and the cement price has not fluctuated significantly.   

   Last week, kilns in central and southern Hebei and Shanxi in North China began to be shut down in summer, and more than 70% of enterprises are expected to stop production as planned. Affected by this, cement prices in the North China market remained stable. Recently, the market demand in Beijing, Tianjin and Hebei has weakened, and the cement price has not fluctuated significantly.   

K-line Chart of Cement Price Index in North China (May-July 2017)

   Beijing and Tianjin: The market sales pressure is still high. Although the price of clinker in Tangshan is slightly lower, the production cost of cement is still high, which has no impact on the price of cement.

   Hebei: Cement clinker enterprises in Handan, Xingtai, Shijiazhuang and Baoding in central and southern Hebei stopped production for 10 days from June 26 to July 5. Due to the impact of the tourism development conference in Qinhuangdao area of northern Hebei, the shutdown time was delayed from July 15 to July 24, totaling 10 days. Cement clinker enterprises in surrounding areas such as Zhangjiakou, Chengde, Tangshan and Langfang will normally shut down kilns for 10 days from July 1 to July 10 as originally planned. Cement prices, the recent rainfall in northern Hebei, the overall demand for sales decline, cement prices are mainly stable. Now Qinhuangdao area large factory P.O42.5 bulk mainstream factory about 320-340 yuan/ton. At the same time, leading enterprises in Chengde intend to push up the price of cement during the shutdown period in early July, with a range of about 20 yuan/ton.

   Shanxi: cement clinker production enterprises shut down kilns for 10 days from June 26 to July 5; shut down kilns for 10 days from July 26 to August 4, and shut down kilns for 20 days in total for two times of peak-shifting production in summer. During the week, major enterprises in Shanxi began to shut down kilns one after another, while the market was dominated by stable prices.

   Inner Mongolia: The Cement Association of Inner Mongolia Autonomous Region issued the Notice on Issuing the Plan for Staggered Production and Kiln Shutdown in Summer 2017. All clinker production lines (except carbide slag enterprises) in the autonomous region are required to carry out off-peak production and kiln shutdown arrangement from July 1 to August 31, and the kiln shutdown time is required to be more than 40 days (if the kiln is shut down in advance in June, the days of kiln shutdown can be included in 40 days.) At the same time, it is divided into six areas of Mengdong, Ximeng, Hohhot, Wulanchabu, Baotou and Wuhai, and the four areas of Hohhot, Wulanchabu, Baotou and Wuhai require the same starting and ending time of kiln shutdown. If there are special circumstances, the starting time of kiln shutdown of the relevant enterprises in the four regions shall not be greater than difference of 10 days. Except for Mengdong area, other areas are required to carry out peak-shifting production and kiln shutdown for no less than 20 days in July.

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   Shanxi Starts Cement Peak-Staggered Production for 20 Days This Summer

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   Kiln Shutdown Plan for Summer Peak-Staggered Production in Inner Mongolia in 2017

   According to market feedback, the Cement Association of Inner Mongolia Autonomous Region issued the Notice on the Plan of Staggered Production and Kiln Shutdown in Summer 2017.

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According to the China Cement Network Market Data Center, kilns in central and southern Hebei and Shanxi in North China began to be shut down in summer last week, and more than 70% of enterprises are expected to stop production as planned. Affected by this, cement prices in the North China market remained stable. Recently, the market demand in Beijing, Tianjin and Hebei has weakened, and the cement price has not fluctuated significantly.   

2017-07-03 11:20:16