SunSirs: Building Material, Slow Recovery of Demand, Cement Prices Fell in East China

According to the monitoring of SunSirs, in March, most construction sites and mixing plants in East China have been resumed in succession, but due to the heavy rain weather, the construction progress of the construction site was slow, the demand recovery was slow, and the cement price continued to decline. On March 1, the price of cement in East China was 504.20 RMB/ ton, and on March 30, the price was 472.80 RMB/ ton, down 6.23%. The current price is 2.78% higher than last year.

Market Aanalysis

Products:

From March, the demand for cement improves little and the price slowly declines.

In March, the cement market price in most parts of East China fell, the cement enterprises had basically resumed work, and the resumption of work at the construction site and mixing plant was also relatively ideal. In the middle and upper part, due to the increase of rainy weather, the cement demand continued to be at a low level, and the actual transaction was light. In order to seize the market share, cement manufacturers had reduced the cement price one after another. At the end of the month, the cement demand had increased. However, due to the large amount of overstocked inventory in the early stage, the supply and demand were stable temporarily, and the cement price slowly fell.

Industry chain: upstream: in the near future, the price of domestic coke market is stable, the downstream steel plants are gradually back to work, and the demand for coke has picked up to a certain extent. Most steel plants mainly purchase on demand. In terms of supply, coking enterprises started to reduce this week, with stable supply. Up to now, the main quotation of quasi first grade CDQ in Shanxi Province is between 1,550-1,650 RMB/ ton. Recently, the stock of the port has increased, and the trading is relatively cold. At present, the quotation of quasi first grade metallurgical coke in the port area is kept at 1,750 RMB/ ton. Downstream: from January to February, the national real estate development investment was 1,011.5 billion RMB, down 16.3% year on year.

Market Forecast

According to the prediction of SunSis, the cement demand in East China is acceptable in the near future, but the cement price is still in a downward trend due to the large amount of inventory in the early stage. With the further increase of demand in the later stage, the price is likely to increase after the inventory is digested. Therefore, the cement product analysts of the business society believe that in a short period of time, the cement market is dominated by concussion and consolidation.

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