East China Cement prices led some companies across the country plan to stop production "protection prices"

The reporter learned from the Digital Cement Network on the 25th that the national cement price fell by 0.7% from the previous week in the previous week. The price of cement in East China led the decline, which was a drop of RMB 10-30/ton. As the downstream demand is still weak, some companies in Hebei Shijiazhuang and other places are planning to take the initiative to stop production and maintenance in order to maintain market supply and demand balance.

Industry sources pointed out that the market season is approaching, but the drop in cement prices has cast a shadow on the market. However, some companies have plans to stop production of "surcharge." Cement giants such as China Building Materials believe that there is a rigid demand for cement, and it remains optimistic about the cement market later this year.

The price of cement unexpectedly fell. Before the peak season, the sudden drop in the price of cement in East China did make people feel a bit sudden. An industry source told reporters that this year's drastic changes in the cement market are somewhat confusing.

In fact, after entering the month of August, the national cement price fell for five consecutive weeks and ushered in a slight increase for two consecutive weeks. “Although it is not large, it can make people feel the taste before the peak season.” said the industry insiders.

However, the situation has changed. Last week, the price of cement in East China not only did not rise as expected, but instead it suddenly dropped. The prices of cement, including Jiangsu and Zhejiang, have been lowered by 20-40 yuan/ton again.

Another person in the industry told reporters that last week, not only the price of cement in Jiangsu and Zhejiang was lowered, but also in cement markets such as Shanghai and Fujian. The prices in the cement market have also dropped significantly, and they have been lowered by RMB 10-30 per ton in different regions. “This has cast a shadow on the market, and everyone is paying close attention to whether the demand for cement in the later period is strong,” the source said.

The reporter learned that, in the current situation of weak demand and excess production capacity, some cement companies in Jiangsu and Zhejiang have already planned to stop producing “protected prices”. It is reported that due to power shortages, some cement companies in Zhejiang plan to suspend production for 10 days. Jiangsu cement companies plan to stop production from this week.

“From late August to the end of August, the downstream construction projects are still weak on the demand for cement, and prices in this region have been relatively low since the previous period. In order to curb prices from continuing to decline under weak demand, companies will actively stop production and maintenance. "Digital cement network analyst Wang Xiaoliang said.

The reporter learned from the digital cement network that in addition to Jiangsu and Zhejiang, some enterprises in Shijiazhuang, Hebei, and Xingtai, Hebei Province, plan to stop production from the 25th and are expected to stop production for about 10 days.

There are still favorable factors for the development of the industry. It needs to be pointed out that what the industry people are worried about is not the fine-tuning of prices. They are worried that the price cut for cement during the peak season may indicate a slowdown in investment demand. In this regard, cement giants such as China Building Materials believe that there is a rigid demand for cement, and the cement market remains optimistic in the latter part of this year. According to the digital cement network survey, major companies’ determination to maintain the market is still in place. “Otherwise, price adjustment will not be reduced by only 20 yuan/ton.”