Market Analysis of Cement Products

According to the monitoring of SunSirs, the cement market in East China fell in January. The price at the beginning of the month was 391.00 RMB/ton, and the price at the end of the month was 381.00 RMB/ton, a drop of 2.56%. The current price is down 25.69% year-on-year.

cement

In January, cement prices fluctuated and fell in some parts of East China. It can be seen from the above chart that the cement market has been falling in the past three months, and the market continues to decline this month. From January to December 2022, the national cement output will be 2.118 billion tons, a year-on-year decrease of 10.8%. In December, the national monthly cement output was 168 million tons, a year-on-year decrease of 12.3%. The demand is worse than last year, the contradiction of overcapacity is intensified, and the growth momentum of cement is insufficient. Before and after the Spring Festival, construction sites are shut down, the demand for cement further declines, and the market fluctuates and falls.

Market Analysis of Coke Products

In January 2023, there will be two rounds of raising and lowering in the coke market. As of press time, the price of quasi-first-grade metallurgical coke in Shanxi is 2,682 RMB/ton, and the price at the beginning of the month is 2,482 RMB/ton, a monthly drop of 7.46%. After entering January, the holiday atmosphere in the market gradually became thicker. During the New Year’s Day, the first round of coke lifting and landing began, and the downward trend of coke started. As of press time, two rounds of lifting and lowering were implemented in January, with a cumulative increase of 200-220 RMB/ton. On the supply side, coking enterprises are currently operating relatively smoothly, which is basically the same as before the Spring Festival. Due to the impact of transportation during the holidays, some enterprises' coke stocks have rebounded slightly, but the overall operation remains low. On the demand side, coke inventories fell during the holidays, and steel mills maintained on-demand purchases. On the whole, Jiaogang has a strong game mentality. As of press time, some steel mills have started the first round of promotion and reduction, and some coke enterprises have started the third round of promotion and reduction. In terms of the market outlook, it is expected that coke prices will temporarily stabilize under the coke steel game mentality. The market outlook will focus on the impact of coke inventory in various links and the sales of downstream steel mills on the supply and demand of coke.

In 2022, the national real estate development investment will be 13,289.5 billion RMB, a decrease of 10.0% over the previous year; among them, residential investment will be 10,064.6 billion RMB, a decrease of 9.5%. The problem of downstream funds is still there, and the recovery of demand is poor. Specifically, the margin of real estate investment has weakened again, and it is still bottoming out in the short term, and the support for the cement market is weak.

SunSirs estimates that the Spring Festival has passed, but workers are still returning one after another, construction site operating rates are increasing slowly, and cement demand is still at a low level. Therefore, SunSirs cement product analysts believe that the cement market will mainly decline slightly in a short period of time .

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