The reporter learned that from April 5 to 6, some major manufacturers in Chongqing raised the cement price by 100 yuan / ton in the main city and northwest Chongqing market. Affected by this, the A-share cement sector rose sharply in the morning trading on April 7. As of the press release of the reporter, Sichuan Shuangma Cement Co.Ltd(000935) , Yunnan Bowin Technology Industry Co.Ltd(600883) , Jinyuan Ep Co.Ltd(000546) successively rose the limit, Xinjiang Qingsong Building Materials And Chemicals(Group)Co.Ltd(600425) , Gansu Shangfeng Cement Co.Ltd(000672) , Xinjiang Tianshan Cement Co.Ltd(000877) , Huaxin Cement Co.Ltd(600801) .
In this regard, industry insiders said that the main reason for the price increase of Chongqing cement is that the early cement price fell to a low level and the cost increased significantly. From the perspective of actual demand, the current peak season of the cement market has not yet arrived, but it has benefited from increased investment in various places this year. After the impact of the epidemic is alleviated, the cement market is expected to usher in a real rebound.
soared by 100 yuan / ton! This is why
“The leading enterprises in Chongqing have greatly pushed up the price of 100 yuan / ton. The main reason is that the cement price has fallen to a low level in the early stage and the cost has increased significantly. In order to improve profits, enterprises have actively promoted the price increase. At present, the market demand is average, the inventory is running at a high level, and the price implementation range needs to be tracked.” Chen Bolin, Deputy Secretary General of China Cement Association and President of digital cement network, told Shanghai Securities News.
It is reported that a number of cement enterprises in Chongqing recently said that due to the continuous high price of coal and the rising price of oil, the freight of raw materials has a great impact on the cost of cement production, so they raised the price. At the same time, cement enterprises in Guang’an, Sichuan, near Chongqing, also issued a price increase notice, saying that due to the rise in the price of raw materials, the cost of cement increased, and the price of cement increased by 100 yuan / ton from April 6. At present, although some enterprises have issued the notice of price increase, there is no transaction, and the specific implementation remains to be seen.
Liu Zuoyi, a senior cement expert, told reporters that since March, the cement price in Chongqing has continued to fall, the overall cement price is low, the enterprise profit is reduced and the pressure is increased, which is also one of the reasons for the price rise.
Data show that in mid February, after the main manufacturers in Chongqing notified to increase the cement price by 40-50 yuan / ton, some manufacturers failed to implement it in place. Affected by this, since March, manufacturers in the main city and Western Chongqing have continuously reduced the cement price, with a cumulative decline of about 40-50 yuan / ton, and the price has basically returned to the level before the rise.
are falling?! The market in most regions is not booming
In fact, “the epidemic has a great impact. At present, the cement delivery rate is generally poor, and the prices in most areas are falling.” Chen Bailin told reporters that the national cement production and sales volume is expected to decline by 15% year-on-year in the first quarter of this year.
It is reported that recently, the cement price in Nanchang, Jiangxi Province has been reduced by 15-20 yuan / ton. The market is short of funds, the construction of engineering projects and mixing plants is poor, the demand for cement is low, and the delivery of enterprises is only 5-60%. Some enterprises secretly reduce the price of cement in order to deliver goods, and other enterprises follow up one after another.
The price of cement in Henan continues to decrease by 30-40 yuan / ton. Affected by the epidemic control and shortage of funds, the downstream demand is weak, and the shipment of enterprises is only about 60%. Under the pressure of inventory, enterprises have successively reduced prices.
The cement price in Jingzhou, Hubei Province was reduced by 20 yuan / ton, mainly due to the general recovery of downstream demand, about 70% of enterprise shipments, and the reduction of cement price in peripheral areas. At the same time, the price of cement in Zhang Jia Jie Tourism Group Co.Ltd(000430) area of Hunan was reduced by 20 yuan / ton. After the rain weather reduced, the market demand still performed poorly. The delivery of enterprises was only about 60%, and the inventory pressure was high. In order to stimulate the downstream to take goods, enterprises reduced the price.
not pessimistic! Market rebound is expected
“Although the cement price fell much in the early stage, we believe in the cement market.” Chen Bailin told reporters that when the epidemic situation improves, there should be a concentrated outbreak period in the cement market.
In fact, the projects started intensively in the first quarter, and the investment harvest in many places “made a good start”, which indicates that the demand for cement will gradually appear in the future.
On March 29, the national Standing Committee requested to make good use of government bonds to expand effective investment, and decided to start a number of new water conservancy projects with mature conditions, with an annual water conservancy investment of about 800 billion yuan. On March 31, the national development and Reform Commission held an inter ministerial joint meeting on the implementation of 102 major projects in the 14th five year plan, which required to ensure that each task of 102 major projects was implemented and effective. In addition to infrastructure, the real estate market also shows signs of recovery.
“For cement, infrastructure is the support and real estate is the key variable. Now the cement price is mainly cost support. In the later stage, as long as the demand is in place, the price will rebound sooner or later.” Chen Bailin said.
