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SunSirs: The Peak season is Coming, Cement Price Rising in East China
September 06 2019 14:28:28SunSirs(Selena)
  1. Price Trend

According to SunSirs, after entering September, the peak season is coming; rainy weather reduced, and cement prices in East China rose. The price of cement in East China was 465.60 RMB/ton on the 1st day and 471.60 RMB/ton on the 5th day, an increase of 1.29%.

  1. Market analysis

Products:

Cement prices in East China have risen since August 20 due to the reduction of rainy weather. After September, the peak season has come, demands and prices have risen.

Regionally speaking, in Jiangsu province, in order to improve profitability, some enterprises in Yangzhou, Nantong, Taizhou, Suzhou, Wuxi and Changzhou increased their high-standard cement prices 20-30RMB/ton on August 26-29, and the peak production in Nanjing began to stagger in September, with a production limit of more than 50%.

In Shandong Province, due to the impact of staggered peak production, cement inventory declined. Recently, cement prices increase of major manufacturers in Liaocheng, Jining and other areas of Shandong Province was 10-20RMB/ton. On August 17, Shandong cement clinker production line began to peak staggering for a period of 20 days.

In Shanghai, due to the rising price of surrounding cement, the cement prices increase of major manufacturers in Shanghai was 30RMB/ton from August 29 to 30.

In Fujian province, demands rebounded, and cement prices increase of major manufacturers in Fujian was 20 RMB/ton on August 27.

In Anhui province, due to the rising price in Nanjing, the cement prices increase of major manufacturers in Chuzhou, Anhui was 20RMB/ton on September 2.

In Zhejiang province, rainy weather is decreasing and demand is rising. On September 1, cement prices increase of major manufacturers in Lishui, Jinhua, Jiande, Quzhou and coastal Ningbo, Taizhou and Wenzhou was 20RMB/ton. Summer peak staggering time was 20 days, and the hot rainy season was from June 1 to August 31.

The reason for this round of price increase is that affected by sunny weather in various regions, the construction market has been restored, sunny weather is conducive to cement transportation, market demand has risen, and then the peak season comes, demand and sales have risen. Cement stocks are at a low level since kiln stops and peak staggering everywhere. In order to increase profits, cement manufacturers intend to increase prices, and cement prices in eastern China are rising.

Industry chain:

Upstream: At present, the domestic coke market has completed the first round of increase and decrease, the decline is around 100RMB/ton, and the current market is weak. After the restriction of output by the Second Youth League, the supply in Shanxi has gradually increased, the terminal market demand is not good, the order of coke enterprises is small, and the recovery of demand in the industry still needs time. Because of the two successive rounds of increase before, the profit of coke enterprises is still acceptable, and there is no obvious resistance to the reduction of coke price; on the downstream side, the profit of steel factories is still low. In addition, coke inventory increased slightly, resulting in steel factories on-demand pick-up or even suspension of purchasing. As the National Day is approaching, Hebei region is expected to be more affected by environmental protection, and intentions to suppress coke prices are strong. Downstream: From January to June, the construction area of real estate development enterprises was 7,722.92 million square meters, an increase of 8.8% over the same period last year, and the growth rate was the same as that in January to May. Among them, the residential construction area was 538.284 million square meters, an increase of 10.3%. The new housing construction area was 105.59 million square meters, up 10.1%, and the growth rate dropped 0.4%. Among them, new residential construction area of 779.98 million square meters, an increase of 10.5%. The completed area of houses was 324.26 million square meters, down 12.7%, and the decline was 0.3%. Among them, the completed area of residential buildings was 229.29 million square meters, down 11.7%.

  1. Market forecast

According to SunSirs, after September, the typhoon and rainy weather decreased, the cement market demand increased, coupled with staggered peak production, inventory decreased, and the traditional peak season came. In order to increase profits, the manufacturers supported the rising price of cement in East China.

 

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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