SunSirs: Cement Market in East China Fell in the Off-season

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 on June 18, it was 459.80 RMB/ ton, down 4.37%. The current price has dropped 3.16% month on month, and the current price has dropped 4.25% year on year.

Since June, the Meiyu season came, the cement market demand declined significantly, the inventory was generally at a high level, generally speaking, the cement price was in a downward trend.

By region, in Jiangsu Province, there are many rainy days, which are affected by the decline of cement prices in surrounding areas. Around June 11, major enterprises in Wuxi, Changzhou, Suzhou, Zhenjiang and other regions in Jiangsu Province notified the price of various kinds of cement to be lowered, with a drop of 30 RMB/ ton. On June 13, major enterprises in Huai'an, Jiangsu Province, announced that the price of high-grade cement would be lowered, with a drop of 20 RMB/ ton.

In Zhejiang Province, due to the majority of rainy weather, the overall inventory rose to 70-80%. On June 11, the prices of various kinds of cement from major manufacturers in Hangzhou, Shaoxing, Lishui and other regions in Zhejiang Province fell, down 30-40 RMB/ ton. On June 14, the price of main brands of cement in Zhoushan District, Zhejiang Province was lowered, with a drop of 30-40 RMB/ ton.

In Anhui Province, the market demand declined. On June 12, major enterprises in Ma'anshan region in Anhui Province notified the cement price to be lowered, with a drop of 30 RMB/ ton. On June 15-16, major enterprises in Chuzhou, 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 Shanghai, due to the influence of weather conditions, the market demand fell by 10-20%. On June 12, major enterprises in Shanghai notified the price of low standard bulk cement to be reduced by 25 RMB/ ton, and that of high standard bulk cement to be reduced by 25 RMB/ ton. The bagging was temporarily stable.

Recently, affected by the busy farming and heavy rainfall in June, the market demand is obviously weakened, the market has entered into the off-season, the cement inventory has increased, the manufacturer's shipment has declined, the recent sales of many places is not good, in order to take the initiative to reduce the cement price, the cement market has declined, especially in the Yangtze River Delta region. In order to resist the surrounding low-cost cement clinker, the price has dropped by 30 RMB/ ton, the largest drop of 60 RMB/ ton in Wenzhou.

Upstream: the overall delivery of geo refining petroleum coke is average, the operating rate of geo refining is increased, the inventory pressure of refineries is large and the downstream operating rate is limited, the demand is average, the downstream takes a wait-and-see attitude, and the price of geo refining petroleum coke is weak and stable in the near future. It is difficult to support the cost of cement, and the price of cement has declined.

Downstream: from January to May, China's real estate development investment reached 4,592 billion RMB, down 0.3% year on year, 3.0% lower than that from January to April. Among them, the investment in housing was 3,376.5 billion RMB which was flat year on year, down 2.8% from January to April. From January to May, the housing construction area of real estate development enterprises was 7,626.28 million ㎡, up 2.3% year on year, 0.2% lower than that from January to April.

According to the prediction of SunSirs, cement has entered the traditional off-season in the near future. Affected by the high temperature and rainy weather, the cement demand continues to decline and the inventory continues to rise. Therefore, the cement product analysts of the SunSirs believe that in a short period of time, the cement market is mainly in downward trend.

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