SunSirs: Cement Prices in East China have slightly Declined

According to the Commodity Market Analysis System of SunSirs, cement in East China has recently experienced a weak decline, with the price of 323.00 RMB/ton on November 15 and the price of 320.00 RMB/ton on November 15, a decrease of 0.93% and a month on month increase of 0.31%. The current price has decreased by 21.38% 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 fluctuated slightly in the past three months, with prices falling this week. In October 2023, China exported 440,000 tons of cement and cement clinker, a year-on-year increase of 163.2%; From January to October, the cumulative export volume was 3.05 million tons, a year-on-year increase of 132.8%. At present, the domestic cement inventory is high, and the construction progress of downstream construction sites and mixing plants is average. Demand continues to decline, and the cement shipment situation is poor, leading to a continued decline in the market.

Recently, the price of steam coal has been weak. In terms of origin, the overall supply of long-term coal in the production area is mainly guaranteed, and the price of coal at the pit mouth is mixed. Although there have been ups and downs in pit prices, they have not entered a downward channel as a whole, and the overall price consolidation is the main trend. In terms of downstream ports, port prices are still experiencing a slight downward trend. Downstream demand has not shown a significant improvement, with low trading volume and some traders pushing prices. However, downstream procurement is average, and the future price trend is still unclear.

From January to October, the national investment in real estate development reached 9,592.2 billion RMB, a year-on-year decrease of 9.3%; Among them, residential investment reached 7,279.9 billion RMB, a decrease of 8.8%. 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, cement demand is unlikely to improve during the off-season in winter, and the cement market lacks support. Therefore, cement product analysts from SunSirs believe that in the short term, the cement market will mainly experience a slight decline.

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