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SunSirs: Demand Picks Up, Cement Market in East China Rises

August 10 2020 10:01:53     SunSirs (Selena)

According to the monitoring of SunSirs, recently, the rain weather has weakened, and the cement market demand has recovered, and the cement price has generally shown an upward trend. On August 1, the cement price in East China was 412.60 RMB/ ton, and on August 1 was 424.20 RMB/ ton, an increase of 2.81%. The current price was 1.85% lower than that of last year, and the current price was 7.50% lower than that of last year.

In August, the continuous rain weather ended, the cement market demand improved, and the inventory was generally not high. Generally speaking, the cement price was in the upward channel.

Recently, with the end of the flood season and the commencement of various infrastructure projects, the market demand is warming up. Previously, the sales volume of many places is good, and the early rise of clinker along the river has helped cement manufacturers to promote the rise of cement price, and the cement market is in the rising channel. The low price of cement seems to have appeared in the year, and the price will rise in the peak season later.

Recently, coking enterprises are more active in shipping, and the inventory of downstream steel mills is on the high side in the middle. Most of the steel mills purchase on demand. At present, the fourth round of price reduction has not been implemented. It is expected that the future market of coke market will be stable temporarily.

Downstream: from January to June, the national real estate development investment reached 6,278 billion RMB, up 1.9% year on year, and decreased by 0.3% from January to May. Among them, residential investment was 4,635 billion RMB, an increase of 2.6%, 2.6 percentage points higher than that of January may. From January to June, the housing construction area of real estate development enterprises was 7,927.21 million square meters, with a year-on-year increase of 2.6%, 0.3 percentage points higher than that of January to May.

According to the forecast of the business association, the weather will be fine in the near future, which is conducive to the construction site and infrastructure construction. Benefited from the rapid growth of infrastructure investment, the cement demand continues to warm up, and the cement manufacturers can deliver goods smoothly. Therefore, the cement product analysts of SunSirs believe that in a short period of time, China cement market is mainly rising.

 

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