Price trend

According to the Commodity Market Analysis System of SunSirs, cement in East China recently experienced a weak decline. The price for this week was 404.00 RMB/ton, while the price at the weekend was 395.00 RMB/ton, a decrease of 2.23% and a month on month decrease of 6.40%. The price decreased by 17.71% compared to last year.

Analysis review

Recently, cement prices declined in some parts of East China. From the data of SunSirs, it can be seen that the cement market was mainly declining in the past two months, and the price continued to decline this week. Around May 13th, cement prices in Nanjing, Yangzhou, Zhenjiang, and Taizhou in Jiangsu Province decreased by 15-20 RMB/ton. On May 14th, the prices of cement in Ningbo, Zhoushan, and Taizhou in Zhejiang decreased by 20-30 RMB/ton. Recently, the demand in East China was poor, and market competition had intensified. The shipment volume of enterprises was about 60-70%, and the market continued to decline. As of the 17th, cement prices in many parts of East China had basically fallen below the pre February level.

Recently, the seventh round of reduction in the coke market was implemented, with a cumulative decrease of 600-700 RMB/ton. After the seven rounds of reduction, the profits of coking enterprises were relatively low. However, due to the continuous downward of raw material prices, the operating rate of coke enterprises was still at a high level, and they were actively shipping, with overall supply still relatively loose. In terms of downstream demand, steel mills' recent profits were still low, and the finished product market was operating weakly. The operating rate of steel mills had declined to a certain extent, and some enterprises were undergoing maintenance, maintained on-demand procurement for coke, and some manufacturers controlled the arrival volume of goods. In the future, SunSirs believes that the supply of coke was relatively loose, and downstream demand was weak. It is expected that the coke market will continue to operate to be weaker.

Downstream funding issues were still ongoing, and demand recovery was poor. Specifically, the marginal investment in real estate had weakened again and was still bottoming out in the short term, with weak support for the cement market.

Market outlook

According to the prediction of SunSirs, the cement market demand in East China was lukewarm and tepid recently, with significant inventory pressure on enterprises and a greater impact from external low-priced cement. Therefore, cement product analysts from SunSirs believe that in the short term, the cement market will mainly decline.

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