Recently, cement prices in some parts of China have continued to rise. According to chinacement.com, at present, some enterprises along the Yangtze River in Anhui are still stopping kilns for maintenance, and the clinker inventory is running at a low level. At the same time, it is driven by the increase of raw material prices. Since March 9, some major enterprises along the river have been notified to increase the clinker price by about 30 yuan / ton in the fourth round. In addition, the market demand in Wuhan, Hubei Province has been recovering recently, and the delivery of some enterprises can reach about 70-80%. In order to improve profits, major manufacturers in the region plan to raise the cement price by about 20-30 yuan / ton on the 10th.
China Merchants Securities Co.Ltd(600999) pointed out that the national cement price index rose, and the cement price index rose in most regions such as the Yangtze River, North China, East China and southwest China. The rise of coal and clinker prices has driven the recent rise of cement prices to a certain extent. At the same time, the peak production or kiln shutdown for maintenance has led to the low clinker inventory. From the perspective of industry fundamentals, the performance forecast profit of sector enterprises in 2021 is mostly negative growth, which makes the cement at the bottom of the cycle and the valuation is low. In March, with the arrival of the peak construction season, the cement price is expected to enter the upward channel. It is recommended to pay attention to the sector opportunities.
Sealand Securities Co.Ltd(000750) believes that in the short term, despite the slow recovery of downstream demand at the beginning of the market, driven by the rise of the cost side, the upward trend of cement prices in various regions is obvious. It is expected that in March, with the continuous increase of downstream demand, cement prices in most regions will begin to rebound. At present, it is recommended to take the lead in the cement area Anhui Conch Cement Company Limited(600585) , Gansu Shangfeng Cement Co.Ltd(000672) , focusing on Huaxin Cement Co.Ltd(600801) , Xinjiang Tianshan Cement Co.Ltd(000877) .
