SunSirs: Consolidation of Cement Price Weakness in East China

According to the Commodity Market Analysis System of SunSirs, cement in East China has recently experienced a weak decline. The price at the beginning of last week was 343.00 RMB/ton, and the price at the weekend was 342.00 RMB/ton, a decrease of 0.29% and a month on month decrease of 10.24%. The current price has dropped by 10.70% compared to last year.

Recently, cement prices have declined in some parts of East China. From the above chart, it can be seen that the cement market has been mainly declining in the past three months, and prices have been weak and consolidating last week. In the traditional high temperature off-season in June, the market demand declined seasonally. With the combination of college entrance examination and other factors, the enterprise's shipment volume continued to decline. In addition, the price of coal and other raw materials declined, resulting in fierce competition. Cement in East China fell slightly, and the price bottomed out.

The recent price consolidation of steam coal has been in operation. In terms of origin, the coal mines in the production area have maintained normal production, and the transportation situation has improved compared to before. The purchasing enthusiasm of coal mines in the main production areas has increased, and market sentiment has improved. In terms of downstream ports, port prices fell first and then rose last week. At the beginning of the week, downstream purchases were mainly based on demand, and the price of thermal coal at ports increased slightly over the weekend. The main reason for the increase is that as the weather heats up and peak summer approaches, power plant inventory drops and demand increases.

Downstream funding issues are still ongoing, and demand recovery is poor. Specifically, the marginal investment in real estate has weakened again and is still bottoming out in the short term, with weak support for the cement market.

According to the prediction of SunSirs, in the near future, the decline of the cement market in East China has slowed down, but the market demand has not increased significantly, and the cement inventory is still at a high level. Therefore, the cement product analysts of SunSirs believe that in the short term, the cement market is mainly down.

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