SunSirs: Building Material, The Weather Turns Cold, Cement Price in East China Rises as a Whole

1. Price Trend

According to the monitoring of SunSirs, after entering December, the weather turned cold, and the cement price in East China rose at the beginning of the month. Recently, the demand of the cement fell, and the cement price tended to be stable. The price of cement in East China on the December 1 was 536.60 RMB/ton, and that on December 11 was 545.80 RMB/ton, an increase of 1.71%.

1. Market analysis

Products: since September, the peak season of cement market has come, the demand for cement has been rising, and the price has continued to rise. After entering December, under the pressure of environmental protection and production restriction at the beginning of the month, the inventory was low, the cement price soared, the recent demand fell, and the price was stable.

In terms of regions, in order to improve the profitability of Jiangsu Province, on December 1-2, major enterprises in Wuxi and Suzhou of Jiangsu Province notified the price of cement to be increased by 30 RMB/ton, and on December 3-4, major enterprises in Nantong and Yancheng of Jiangsu Province notified the price of cement to be increased by 20 RMB/ton.

In Zhejiang Province, the demand rose. On December 3, the price of cement of major manufacturers in Huzhou, Jiaxing and other regions in Zhejiang Province increased by 20 RMB/ton.

In Anhui Province, the price is expected to rise after the middle December.

In Shandong Province, the market demand decreased and the cement price continued to decline. On December 5, the cement price of some manufacturers in Shanjining region decreased by 50 RMB/ton.

In Fujian Province, the weather is fine and the demand and sales are just right. On December 4-5, the price of cement of the main manufacturers in Fujian increased by 30 RMB/ton.

In previous period, the price of cement market in most parts of East China continues to rise, and the upward trend of cement price is driven by multiple favorable factors. The first is that the weather turns cold, the rainy weather decreases, the trading atmosphere of cement market is positive, the sunny weather is conducive to cement transportation, the demand and sales of cement market is good, and the intention of cement manufacturers to increase the price in order to improve profits is obvious, and near the end of the year, the construction site is rushing, and the cement inventory is under way Drop faster, and East China cement market rose. Second, affected by the shutdown order in some parts of Shandong Province, the construction sites were shut down successively, the market demand fell and the price fell.

Industry chain: upstream: after the price of coke rose by 50 RMB/ton in the second round, the supply of domestic coke spot market declined due to environmental protection, production restriction, capacity reduction and other factors, the market mentality was more optimistic, and some coke prices were reluctant to sell. Downstream: from January to August, the housing construction area of real estate development enterprises was 8,131.56 million ㎡, up 8.8% year on year, 0.2 percentage points lower than that from January to July.

1. Market Forecast

According to the prediction of SunSirs, in middle December, the price of cement in East China has been at a high level after continuous promotion. However, under the pressure of environmental protection and production restriction, the cement stock keeps at a low level, and the cement market tends to be stable. As the weather continues to be cold, the cement market demand may decline. Therefore, the cement product analysts of SunSirs believe that in a short time, the cement market will be mainly in shock consolidation.

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