SunSirs: Weak Demand; Cement Price Declines in East China

According to the monitoring of SunSirs, in the near future, with the arrival of Meiyu and busy farming season, the cement market demand has weakened, and the cement price has generally declined. On June 1, the cement price in East China was 480.80 RMB/ ton, and June 9, it was 478.60 RMB/ ton, down 0.46%. The current price rose 1.10% month on month, and the current price fell 1.44% year on year.

Market Analysis

Products:

Since June, the cement demand was poor, the inventory was generally high, and the cement price was generally in the downward channel.

In Jiangsu Province, there are many rainy days. On June 5, the main enterprises in Yancheng District of Jiangsu Province notified the price of high-grade cement to be lowered, with a drop of 20-30 RMB/ ton. On June 8, major enterprises in Nantong, Jiangsu Province, notified the price of 42.5-grade and 52.5-grade bags of bulk cement in high standard to be lowered, with a drop of 20 RMB/ ton.

In Zhejiang Province, it was dominated by rainy weather. On June 1-2, the actual transaction price of cement from the main manufacturers in Hangzhou, Zhejiang Province fell by 20 RMB/ ton.

In Anhui Province, the market demand declined. On June 5, major enterprises in Anqing region of Anhui Province notified the cement price to be lowered, with a drop of 20 RMB/ ton.

In Fujian, there are many rainy days and poor market demand. On June 1-3, major enterprises in Fuzhou, Fujian Province, notified the cement price to be lowered, with a drop of 15 RMB/ ton.

In June, Meiyu season, coupled with busy farming season, the construction site construction is affected, the market demand and sales are weak, and the cement inventory has increased. Recently, the sales volume in some areas is not good. In order to improve the sales volume, the manufacturers take the initiative to reduce the cement price, and the cement market has declined.

Upstream: perviously, the coke price is temporarily stable, so it is difficult to support the cement cost, and the cement price has declined slightly. Downstream: from January to April, the national real estate development investment was 3,310.3 billion RMB, down 3.3% year on year, 4.4% lower than that from January to March. Among them, the residential investment is 2,423.8 billion RMB, down 2.8%, down 4.4%. From January to April, the housing construction area of real estate development enterprises was 7,405.68 million ㎡, up 2.5% year on year, 0.1% lower than that from January to March.

Market Forecast

According to the prediction of SunSirs, the cement market is gradually entering the traditional off-season in the near future in Meiyu season, and the demand may further weaken. Therefore, the cement product analysts of SunSirs believe that in a short period of time, the cement market tends to weaken.

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