SunSirs: Cement Prices in East China is Weak and Declining

According to the commodity market analysis system of SunSirs, cement in East China has recently experienced a weak decline. The price of cement on the 18th was 334.00 RMB/ton, while the price on the 25th was 330.00 RMB/ton, a decrease of 1.20%, a month on month decrease of 4.07%, and the current price has dropped by 13.39% year-on-year.

Recently, cement prices have declined in some areas of East China. The cement market has fluctuated slightly in the past three months, with prices falling last week. Currently, market demand continues to decline, with some construction sites in East China shutting down and cement manufacturers facing significant inventory pressure. In order to ship, the cement market is leading the way down.

Last week, coal prices fluctuated and consolidated. In terms of origin, the prices of coal mines have been stable recently. In terms of downstream ports, prices slightly decreased at the end of the month. Power plants tend to adopt a wait-and-see attitude and purchase according to demand. Overall, it is expected that the price of thermal coal will be mainly adjusted based on downstream market demand.

From January to December 2023, the cumulative decline in indicators such as sales area and sales revenue of commercial housing, real estate development investment, and in place funds of real estate enterprises continued to expand compared to January to November. Among them, the sales area of commercial housing reached a new low since 2012, sales reached a new low since 2016, and development investment scale reached a new low since 2017. However, in December 2023, the sales area of commercial housing increased by 41.6% month on month. In recent years, real estate investment has gradually declined, and infrastructure demand is difficult to hedge against the impact of the real estate downturn. The support for the cement market is weak.

According to the prediction of SunSirs, as the Spring Festival approaches, workers will gradually return home, and there is an expectation of further decline in cement demand. Therefore, cement product analysts from SunSirs believe that the cement market will mainly experience a slight decline in the short term.

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