SunSirs: Building Material, Cement Price Consolidation in East China after Cold Weather

1  Price Trend

According to the monitoring of SunSirs, after January, the weather turned cold. In early January, the cement price in East China was consolidated. Recently, the cement market demand fell and the cement price tended to be stable. On January 1, the price of cement in East China was 548.2 RMB/ ton, and on January 7, the price was 547.80 RMB/ ton, a decrease of 0.07%. The current price is 0.7% higher than that of last year.

2  Market Analysis

Products:

Since January, the cement market has ushered in the off-season, the cement demand has declined, and the price has continued to consolidate.

In terms of regions, Jiangsu Province has been affected by environmental protection regulations and has been shut down for many times. the price of bulk cement Po42.5 is 540 RMB/ ton.

In Zhejiang Province, the price is stable and still at a high level. The price of bulk cement Po42.5 is 591 RMB/ ton.

In Anhui Province, the price of bulk cement Po42.5 is 495 RMB/ ton.

In Shandong Province, many cement enterprises stop or limit production. The price of bulk cement Po42.5 is 534 RMB/ ton.

In Fujian Province, the demand and sales are good and the price is high. The price of bulk cement Po42.5 is 598 RMB/ ton.

In Shanghai, the demand is still good. The price remains high and the price of bulk cement Po42.5 is 581 RMB/ ton.

Previously, the cement market price in most areas of East China has been shaken and consolidated. The Spring Festival is coming, some construction sites are rushing to work. The demand for cement is good, and the price remains at a high level. On the other hand, some areas in Shandong and Jiangsu are affected by the shutdown order. The cement production is stopped or limited, and the inventory is reduced. The manufacturers in various places offer high prices to maintain stable operation.

Industry chain: upstream: after winter, affected by heating season, air pollution warning and other factors, many places in North China began to implement production restriction measures. In addition, the recent security inspection caused by safety accidents led to a certain decline in the supply of coke spot. The confidence in the industry recovered, and the coke price intention was strong. However, the procurement of downstream steel plants showed no obvious signs of increase, most of which were just needed and the coke inventory was high. Affected by the rise in steel profits, the steel plant's efforts to suppress coke prices slowed down. Downstream: from January to November 2019, China's real estate development investment reached 12,126.5 billion yuan, up 10.2% year on year, 0.1 percentage point lower than that from January to October.

3  Market Forecast

According to SunSirs, the Spring Festival is coming, and the cement price in East China has been at a high level after continuous promotion. However, under the pressure of environmental protection and production restriction, the cement stock keeps at a low level, and the cement market tends to be stable. With the approaching of the Spring Festival holiday, the demand of the cement market may decline. The cement product analysts of SunSirs believe that in a short time, the cement market will be mainly in shock consolidation.

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