Demand pressure over the price of cement prices down
2018-07-27 22:01:27
Since late July, with the exception of Guiyang and Guangxi, where limited electricity has affected cement prices in some regions, prices in different regions have dropped by around RMB 20-40/ton, mainly due to the weak market demand and the production line in the original area in East China. Post-production inventory is relatively high, and the entry of low-priced cement in the foreign market has a negative impact on the local cement price. Jiangsu and Zhejiang cement companies started a new round of limited production and guaranteed prices in late August.
It is reported that from January to July this year, the country’s total cement production increased by 19.2% year-on-year, and the production in the southwest and northwest regions grew rapidly, with a cumulative increase of 25.3% and 20.3% year-on-year, which was mainly due to the impact of faster production capacity, and accumulative production in the east and south central regions. The growth rate was 5.9% and 8.7%, which was related to the policy that the region's new production capacity was relatively small and the large-scale enterprises adopted the policy of limiting production and insuring prices.
In terms of cement demand, the national fixed asset investment growth rate reached 25.4% in January-July, and the total fixed asset investment in the East China region grew at a high rate, reaching 37.0%. The growth rate in North China and Northeast China was relatively low. In terms of total investment, the growth rate in East China is also at a high level, and southwest and south-central China are weak. In the second half of the year, under the conditions of financial constraints, there is a risk that downstream demand will fall too quickly.
This year, the proportion of new production capacity in East China and South Central China accounts for 2% of the total output of the local area last year, and the supply of new products is limited. The ratio in the southwest and northwest regions is 11% and 14%. Newly-started cement production capacity in the northwest region is higher.
It is reported that from January to July this year, the country’s total cement production increased by 19.2% year-on-year, and the production in the southwest and northwest regions grew rapidly, with a cumulative increase of 25.3% and 20.3% year-on-year, which was mainly due to the impact of faster production capacity, and accumulative production in the east and south central regions. The growth rate was 5.9% and 8.7%, which was related to the policy that the region's new production capacity was relatively small and the large-scale enterprises adopted the policy of limiting production and insuring prices.
In terms of cement demand, the national fixed asset investment growth rate reached 25.4% in January-July, and the total fixed asset investment in the East China region grew at a high rate, reaching 37.0%. The growth rate in North China and Northeast China was relatively low. In terms of total investment, the growth rate in East China is also at a high level, and southwest and south-central China are weak. In the second half of the year, under the conditions of financial constraints, there is a risk that downstream demand will fall too quickly.
This year, the proportion of new production capacity in East China and South Central China accounts for 2% of the total output of the local area last year, and the supply of new products is limited. The ratio in the southwest and northwest regions is 11% and 14%. Newly-started cement production capacity in the northwest region is higher.
Color Coated,Ppgi 0.14-1.2Mm,Roof Material
Prepainted Coil Co., Ltd. , http://www.sdhfgroup.com