SunSirs: Frequent Rainy Weather, Cement Market Decline in East China

According to SunSirs, in July, the rainfall area increased significantly, the cement market demand weakened, and the cement price continued to fall. On July 1, the cement price in East China was 444.20 RMB/ ton, and on July 9 was 426.20 RMB/ ton, a decrease of 4.05%. The current price was 10.95% month on month, and the current price was 9.32% lower than last year.

Since July, the Meiyu season comes, the cement market demand is low, the inventory is generally high, and the cement price is in the downward channel.

By region, in Jiangsu Province, affected by Meiyu weather, on July 3 to 4, major enterprises in Suzhou, Suqian, Yancheng and other regions in Jiangsu Province informed the price of various types of cement to be lowered, with a drop of 10-20 RMB/ ton.

In Zhejiang Province, rainy weather prevailed, and the overall inventory was on the high side. From July 4 to 6, the prices of various types of cement from major manufacturers in Quzhou, Jinhua and Lishui in Zhejiang Province dropped by 20-30 RMB/ ton. On July 4, the prices of various types of cement from major manufacturers in Hangzhou and Shaoxing, Zhejiang Province, fell by 20 RMB/ ton.

Anhui Province and Huangshan area are in rainstorm weather. Around July 7, the main enterprises in Huangshan area of Anhui Province informed that the price of high-grade bulk cement would be lowered by 30 RMB/ ton.

In Fujian, there are more rainy weather and poor market demand. On July 2, the main enterprises in Fuzhou, Fujian Province, announced that the cement price would be reduced by 20 RMB/ ton.

In Shanghai, affected by the weather, the market demand declined. On July 1, major enterprises in Shanghai informed the price of various cement varieties to be reduced by 20 RMB/ ton.

Recently, rainy and high temperature weather is not conducive to construction, the market demand continues to shrink, the market enters the off-season, the cement inventory rises sharply, the contradiction between supply and demand is prominent, the manufacturer's shipment volume drops, and the sales volume of many places are not good recently. In order to carry out the goods, the manufacturers actively reduce the cement price, and the cement market declines all the way.

Upstream: the price of coke market fell, the mainstream steel mills increased 50 RMB/ ton for the first round, and some coke enterprises have implemented the price reduction. Coke manufacturers are actively shipping, downstream steel mills mostly maintain the early production level, maintain the rigid demand procurement. Short term coke may fall mainly below.

Downstream: from January to May, the national real estate development investment was 4,592 billion RMB, down 0.3% year-on-year, 3.0% lower than that of the period of January to April. Among them, residential investment was 3,376.5 billion RMB, which was flat on a year-on-year basis, with a decrease of 2.8% from January to April. From January to may, the housing construction area of real estate development enterprises was 7,626.28 million square meters, with a year-on-year increase of 2.3%, which was 0.2% lower than that of the period of January to April.

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