Last week, the national cement market overall showed a stable yet divergent trend, with significant regional variations. In North China, Shijiazhuang attempted another price hike of 50 RMB/ton, but implementation proved challenging due to colder weather and shrinking demand, leaving the market generally weak and stable. The Northeast market has largely concluded, entering a final phase with prices existing in name only. In East China, Jiangxi and other areas continued price hikes driven by cost pressures, while the Yangtze River Delta region stabilized overall. Central and South China faced persistently weak demand, with prices retreating in many areas after initial increases. Southwest China saw mixed price movements amid supply contraction due to environmental inspections. Northwest China fully entered its winter off-season, with market activity significantly declining.
On December 5, the national cement price index closed at 308.79 points, down 0.1% month-on-month and 23.82% year-on-year.
East China Region
Jiangsu: Following cement price hikes of 10-30 RMB/ton by major enterprises in multiple Jiangsu markets at the end of November, leading companies have largely stabilized their external quotations. Current terminal demand in Jiangsu shows limited improvement with significant inventory pressure. Some enterprises are still actively implementing price adjustments, though full market adoption remains uncertain.
Zhejiang: Leading enterprises in Zhejiang notified price increases of approximately 20-30 RMB/ton across various regions at the end of November. Market observations indicate that post-increase quotations remain largely stable in northern and central-southern Zhejiang. Coastal markets, however, face pressure from lower external prices, with some enterprises seeing narrowed actual transaction margins. Regional price divergence is pronounced.
Anhui: Cement prices in Anhui are expected to remain stable in the short term. Enterprises may continue tentative price adjustments, but sustained upward momentum appears unlikely.
Fujian: Starting December 6, some leading provincial enterprises again notified price hikes of 10 RMB/ton for various cement grades in Xiamen, Zhangzhou, Longyan, and other areas. Other markets remain stable and watchful, with implementation details still pending observation.
Shandong: At the beginning of the month, some regional leading enterprises intended to push for a 30 RMB/ton cement price increase in markets like Jinan and Tai'an. However, the plan was shelved due to lack of market consensus.
Central and Southern Regions
Guangdong: Leading provincial enterprises announced cement price hikes ranging from 10-30 RMB/ton for the Pearl River Delta, Yunfu, Yangjiang, and Eastern Guangdong (Meizhou, Chaoshan) regions. Eastern Guangdong primarily raised bagged cement prices by 10-15 RMB/ton. Whether this round of increases will be fully implemented remains to be seen.
Guangxi: Market demand remains moderate. Some enterprises have shown signs of covert price reductions to maintain sales volume, though overall cement quotations in the region remain largely stable.
Hubei: Winter construction slowdowns coupled with heavy inventory pressure and insufficient demand have led to slight price adjustments in some areas.
Hunan: Prices persist at low levels, intensifying operational pressures for enterprises and heightening their willingness to raise prices. Major producers in Shaoyang, Loudi, Yongzhou, Changde, and Yiyang have successively announced cement price hikes of 20-30 RMB/ton starting November 29. Whether these increases will be fully implemented remains to be seen.
Henan: Market sources indicate that peak-shifting kiln shutdowns and environmental policies have constrained production capacity among Henan's leading cement companies. Combined with local weather conditions and gradually recovering downstream demand, local enterprises have recently pushed for further cement price hikes of 10-20 RMB/ton. The actual implementation of this round of market price increases remains to be seen.
Southwest Region
Sichuan-Chongqing: Enterprises primarily rely on existing inventory for shipments, resulting in a supply contraction trend. To boost profitability, bulk cement prices in Chongqing's main urban area, western Chongqing, and Sichuan's Guang'an and Nanchong regions have been simultaneously raised by 30 RMB/ton. Meanwhile, some leading companies in the Chengdu-Deyang-Mianyang region implemented a recovery-oriented price adjustment of 10 RMB/ton for high-grade bulk cement. The actual implementation of this adjustment requires further observation.
Guizhou:
Cement prices in Tongren have completed a 30 RMB/ton increase. However, earlier price hike measures in the central Guizhou region were poorly executed, leading to a slight decline in cement prices last week.
Yunnan: Earlier price hike policies also failed to take effect, with some enterprises lowering prices. Overall market transactions showed weak but stable operation.
Northwest Region
Shaanxi: Demand has gradually declined.
Gansu, Ningxia: Construction sites have largely halted operations due to recent snowfall.
Qinghai: The market has also entered the winter closing phase, with construction sites generally suspended.
North China Region
Beijing-Tianjin-Hebei Region: Cement price hikes in the region lack momentum. As temperatures drop, market demand has further contracted. In early December, leading enterprises in Shijiazhuang and surrounding areas announced a 50 RMB/ton price increase, aiming to restore bulk cement ex-factory prices to 300 RMB/ton. However, due to demand constraints, overall implementation remains challenging.
Shanxi, Inner Mongolia: Both supply and demand remain weak in Shanxi and Inner Mongolia as the traditional off-season sets in, with prices holding at a weak but stable level.
Northeast Region
Northeast: The cement market in the Northeast has largely concluded its operations.
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