SunSirs: Demand Rebounds and Cement Prices Rise in East China

1. Price Trend

According to the monitoring of SunSirs, the sales peak season comes after September, the rainy weather decreases, the temperature is suitable, the demand for cement has risen sharply, and the price of cement in East China has risen. The price of cement in East China was 465.60 RMB/ton on the 1st day and 475.00 RMB/ton on September 18th, an increase of 2.02%.

2. 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, cement demand has been rising and prices have risen further.

Regionally speaking, in order to improve profitability, some enterprises in Yangzhou, Nantong, Taizhou and Suzhou-Xichang regions increased their high-standard cement prices by 20-30 RMB/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 Zhejiang, the rainy weather is decreasing and the demand is rising. On September 15, the cement prices of major manufacturers in Lishui, Jinhua, Jiande, Quzhou, Hangzhou and Hubei increased 20-30 RMB/ton.

Driven by the rising cement prices in Nanjing, the cement prices of major manufacturers in Chuzhou, Anhui Province, increased 20 RMB/ton on September 2, and the cement prices of major manufacturers in Wuhu, Tongling, Luan and Xuancheng, Anhui Province, increased 10-20 RMB/ton on September 10. On September 15, cement prices of major manufacturers in Huangshan, Anhui Province and other regions increased 10-20 RMB/ton.

In Shandong Province, due to the staggered peak production, the cement inventory declined. On September 1, the cement prices of major manufacturers in Liaocheng, Jining, Zibo and Linyi of Shandong Province increased 10-20 RMB/ton. On August 17, Shandong cement clinker production line began to peak staggering for 20 days.

In Shanghai, driven by the increase of surrounding cement, the cement prices of major manufacturers in Shanghai increased 30 RMB/ton from August 29 to 30.

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

Driven by the traditional peak season, the demand of cement market has risen. Influenced by the fine weather, the construction market has been restored. Good weather is conducive to cement transportation. Demand and sales rose, and kiln stoppage and peak staggering began everywhere. Cement inventory declined rapidly. Cement manufacturers intend to increase their profit and price obviously. Cement market in East China maintained an upward trend.

Industry chain: upstream: At present, the domestic coke market has been running steadily after two successive rounds of rise and fall, with a cumulative reduction of about 200 RMB/ton. The overall start-up rate of coke enterprises is relatively stable, and coke supply is relatively sufficient, but the overall market trading situation is normal, leading to some coke enterprises inventory increase. Although there is no obvious sales pressure for coke enterprises at present, the market pessimism is still continuing. The downstream steel plant is still limited by environmental factors. The coke stock of the steel plant remains high and the purchase of coke is just needed. On the port side, the trading situation is still weak, and traders mostly hold a wait-and-see attitude towards coke purchase. Downstream: From January to August, housing construction in real estate development enterprises increased by 8.8% year on year, and the growth rate dropped by 0.2% compared with January to July. Among them, residential construction increased by 10.1%. New housing construction grew by 8.9% and the growth rate fell by 0.6%. Housing completion fell by 10.0% and the decline narrowed by 1.3%. Housing completion fell by 9.6%.

3.  Market Forecast

According to SunSirs, after late September, driven by the traditional peak season, cement market demand and sales have improved, cement inventory has decreased rapidly, and prices still have room to rise. In order to enhance profits, cement manufacturers have increased prices, and cement prices in East China have risen.

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