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SunSirs: Cement Prices in East China have slightly Increased
September 21 2023 13:58:05SunSirs(Selena)

According to the Commodity Market Analysis System of SunSirs, the cement market in East China has recently slightly increased. The price at the beginning of this week was 319.00 RMB/ton, and the weekend price was 323.00 RMB/ton, an increase of 1.24%, which is unchanged compared to the previous month. The current price has decreased by 18.02% compared to last year.

Recently, some areas in East China have seen a slight increase in cement exploration. From the above chart, it can be seen that the cement market has been mainly declining in the past three months, with prices rebounding slightly this week. In mid September, the weather was sunny and demand in the construction market improved. In addition, the rising prices of raw materials such as coal and clinker led to a rise in the cement market in East China. On September 18th, several places in Jiangsu, including Suzhou, Wuxi, Nanjing, Nantong, Yancheng, and Huai'an, announced an increase of 20 RMB/ton in the price of high standard cement.

Recently, the price of steam coal has been relatively strong. In terms of origin, coal mines maintain normal production, and the market mainly focuses on shipping long-term coal. In terms of downstream ports, prices have slightly increased recently, but due to the cooling weather in the later stage, the daily consumption of power plants has decreased. Downstream procurement is still mainly based on demand, with limited demand from non electric enterprises. It is expected that the main focus will be on consolidation and operation after the rise of steam coal prices in the later stage, depending on the downstream market demand.

According to data from the National Bureau of Statistics, from January to August, the investment in real estate development in China reached 7,690 billion RMB, a year-on-year decrease of 8.8% (calculated according to comparable standards); Among them, residential investment reached 5,842.5 billion RMB, a decrease of 8.0%. The cement industry is most concerned about new construction, with a new construction area of 638.91 million square meters, a decrease of 24.4%. Among them, the newly constructed residential area was 466.36 million square meters, a decrease of 24.7%. Since the beginning of this year, due to the decline in real estate investment growth rate, domestic cement demand has been average.

According to the prediction of SunSirs, cement demand has improved in the near future, and some regions are starting to try to push up due to the impact of staggered peak kiln shutdowns. Therefore, cement product analysts from SunSirs believe that in the short term, the cement market will mainly experience a slight increase.


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