SunSirs: Poor Demand; Cement Prices Fell in East China

According to the monitoring of SunSirs, the cement market in East China has been fluctuating and falling recently. The price at the beginning of the month was 391.00 RMB/ton, and the price on the fifth day was 385.00 RMB/ton, down 1.53%. The current price fell 30.42% year on year.

Recently, cement prices in some parts of East China have fallen. It can be seen from the above figure that the cement market has fallen for three consecutive weeks recently. At present, the Spring Festival is approaching, with rainy and snowy weather in the majority, construction workers are returning home, and the market demand has declined significantly. At the beginning of January, major manufacturers in Suzhou, Wuxi and Changzhou, Jiangsu Province, notified the price of various types of cement to decline by 20-30 RMB/ton. Recently, with the further weakening of demand, the cement market has shown a downward trend.

The coke market has declined slightly recently. At present, the coking market is in a good mood, the coke enterprises have recovered their mentality, the coking operation rate has increased slightly compared with the early stage, the shipping situation is good, the enterprises are actively shipping, and the inventory in the factory is running at a low level. In terms of demand, the blast furnace of the steel plant has started well recently, and the demand for coke is fair. After the recovery of transportation, the arrival of coke in the steel plant has improved. The steel plant needs to purchase steel in winter, and the stock has been actively replenished. The stock has recovered rapidly. During the New Year's Day, the first round of lifting and lowering was launched and quickly landed, affecting the market mentality. In the future market, SunSirs believes that the performance of the downstream is weak as a whole near the Lunar New Year, and it is hard to expect a good performance in the short term. It is expected that the coke price will temporarily operate stably in the short term. In the future, it is necessary to focus on the price trend of coking coal and the coke inventory in each link.

Downstream: The funding problem is still in place, and the demand recovery is poor. Both the supply and demand sides of the market have not recovered significantly, and the national real estate market as a whole is still in the stage of deep adjustment. A small number of projects were constructed in some areas, which gave weak support to the cement market.

According to the prediction of SunSirs, with the coming of the New Year's Day and the Spring Festival, the demand of the East China market will further decline, and the cement inventory pressure will be greater. Therefore, the cement product analysts of SunSirs believe that China cement market will decline mainly in the short term.

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