Price trend

According to the Commodity Market Analysis System of SunSirs, cement in East China had recently undergone a weak consolidation. This week's price was 323.00 RMB/ton, a decrease of 3.00% compared to the previous week, and the price decreased by 17.16% compared to last year.

Analysis review

Recently, some areas in East China saw weak consolidation of cement. From the data of SunSirs, it can be seen that the cement market was mainly declining in the past three months, and prices was weak and consolidating this week. In the traditional high temperature off-season in August, market demand experienced a seasonal decline, and enterprise shipments continued to decline. In addition, the prices of raw materials such as coal had decreased, leading to fierce competition. The rise in East China was weak, and the market was consolidating at a low level.

Recently, the price of thermal coal was weaker. In terms of origin, coal mines maintained normal production, and the market mainly focused on shipping long-term coal. In terms of downstream ports, due to recent weather conditions, the daily consumption of power plants had decreased. Downstream procurement was mainly based on demand, with average market transactions. The peak season was approaching its end, and the demand for non electric enterprises was limited. It is expected that the weak and stable operation of thermal coal prices will be the main focus in the later stage, depending on the downstream market demand.

The sales area of commercial housing from January to July was 665.63 million square meters, a year-on-year decrease of 6.5%, an increase of 1.2 percentage points compared to January June. The cumulative growth rate was declining for three consecutive months, with a slight slowdown in the rate of decline. The sales revenue of commercial housing was 7,045 billion RMB, with a cumulative negative rate of -1.5% for the first time since March, a decrease of 2.6 percentage points compared to January June. Only residential sales maintained a positive growth, with a cumulative increase of 0.7% in the first seven months. The sluggish real estate industry had limited support for the cement market.

Market outlook

According to the prediction of SunSirs, recently, some regions started to try to push up due to staggered peak kiln shutdowns and low prices. However, there had been no significant increase in market demand, and cement inventory was still at a high level. Therefore, cement product analysts from SunSirs believe that in the short term, the cement market will mainly decline.

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