SunSirs: The Demand and Sales are Good, the Cement Price in East China Rose in October

1. Price Trend

According to the monitoring of the SunSirs, since October, the weather is fine, the cement market demand is good, the sales is rising, and the cement is in a rising trend. On the first day, the cement price in East China was 484.2 rmb/ ton, and October 30, it was 489.00 rmb/ ton, an increase of 0.99%.

2. Market Analysis

Products: Since October, the peak season has come, the demand for cement has been rising, and the price has continued to rise. After the holiday in October, the demand and sales went up, and the price went up all the way.

In terms of regions, in Jiangsu Province, in order to improve profits, on October 4, major enterprises in Wuxi, Yixing and other regions in Jiangsu Province notified the price of cement to be increased by 10-20 RMB/ ton. In September, Nanjing began to stagger peak production, limiting production by more than 50%.

In Zhejiang Province, the rainy weather decreased and the demand increased. On October 1-8, the cement prices of major manufacturers in Lishui, Jinhua, Jiande, Quzhou, coastal Taizhou, Wenzhou and other regions in Zhejiang Province increased by 10-30 RMB/ ton. On October 22, cement prices of major manufacturers in Taizhou, Wenzhou and other regions in Zhejiang Province increased by 20-30 RMB / ton.

In Anhui Province, due to the rise of cement price in Nanjing, on October 1, the cement price of major manufacturers in Huangshan, Anhui increased by 30 RMB/ ton, and on October 10, the cement price of major manufacturers in Maanshan, Anhui Province increased by 20 RMB/ ton. On October 21, the price of cement from major manufacturers in Chuzhou, Anhui province increased by 10-15 RMB/ ton.

In Shandong Province, in order to improve the sales volume, the cement price decreased. On October 4, the cement price of some manufacturers in Jining and other regions decreased by 20-30 RMB/ ton. In order to increase profits, on October 29, cement prices of some manufacturers in Jining, Heze, Zaozhuang, Linyi and other regions in Shandong Province increased by 10-20 RMB/ ton.

In Fujian Province, demand increase. On October 1, cement prices of major manufacturers increased by 20-30 RMB/ ton. On October 16, Cement prices of major manufacturers in Fujian increased by 20-30 RMB / ton. On October 26-27, cement prices of major manufacturers in Fujian increased by 10-20 RMB / ton.

The national cement market price continues to rise, and the upward trend of cement price is driven by multiple favorable factors. First, driven by the traditional peak season, the cement supply is tightening, the cement market trading atmosphere is positive, and the weather is good, which is conducive to cement transportation. The demand and sales of cement market are improving, and the inventory is declining rapidly. In order to improve the profit, the cement manufacturers have obvious intention to increase the price, and the cement market in East China is rising. Second, in the fourth quarter, some major production areas will shut down production, resulting in further reduction of supply and further increase of cement prices.

Industry chain: upstream: at present, the first round of raising and lowering of domestic coke market has been completed, and the coke prices in various regions are generally reduced by about 50 RMB/ ton. In addition to some coke enterprises in Shanxi limited by environmental protection, coke enterprises started normally as a whole. Due to the flat purchase of downstream steel plants, the overall inventory of the industry has increased. This reduction of coke price further reduces the profit space of coke enterprises, which strongly contradicts coke enterprises. In the downstream, the steel price is low, production is limited in Hebei Province, the demand of steel mills is poor and the coke inventory is high. Some enterprises intend to control the arrival quantity and purchase on demand. The steel mills are willing to press the price, and the coke steel game mood is strong. Downstream: from January to August, the housing construction area of real estate development enterprises was 8,131.56 million square meters, up 8.8% year on year, 0.2% lower than that from January to July.

3. Market Forecast

According to SunSirs, after November, the cement market demand is fair, and the current upward trend of cement in East China may still be maintained in the short term. With the gradual shutdown of the kiln in the later stage, coupled with the pressure of environmental protection and production restriction, and the multiple positive impetus, the cement product analysts of SunSirs believe that in a short time, the cement market will mainly rise by a small margin.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com .