SunSirs: Weak Consolidation of Cement Prices in East China

According to the commodity market analysis system of SunSirs, cement in East China has recently experienced a weak decline, with a price of 308.00 RMB/ton this week, a month on month decrease of 4.94%. The current price has dropped by 26.84% year-on-year.

Recently, cement in some areas of East China has been fluctuating and consolidating. From the above chart, it can be seen that the cement market has been mainly fluctuating and declining in the past three months, and the prices have remained stable this week. In March, the recovery of demand in East China was slow, and market transactions fell short of expectations, resulting in a weak consolidation of the cement market.

This week, coal prices have been running weakly. In terms of origin, strict safety inspections were conducted during important meetings, and the supply of thermal coal was slightly tightened. However, most coal mines have maintained normal production, and the supply of thermal coal has gradually resumed. However, the overall focus is on supplying long-term coal, and downstream terminal procurement enthusiasm is average, with most maintaining a cautious wait-and-see attitude. In terms of downstream ports, overall coal prices have been weak this week due to the impact of long-term coal contracts and imported coal replenishment on power plant inventories, which has led to a cautious wait-and-see attitude towards the market's coal supply. The overall market release is average, and the terminal market mainly maintains a small amount of rigid demand procurement for thermal coal. In the traditional off-season market context, overall transactions are relatively average.

In the first two months, the total amount of land acquired by the top 100 real estate companies reached 157.7 billion RMB, a significant increase of 30.6% year-on-year. Real estate investment is recovering, and many private enterprises have recently taken action to acquire land, sending a positive signal. These signals from the land market reflect changes in the investment mindset of real estate companies, and as the amount of change accumulates, new industry trends will also emerge. It has a positive promoting effect on the cement market.

According to the prediction of SunSirs, the willingness of real estate companies to acquire land is gradually increasing, which is favorable for the demand for cement. Therefore, cement product analysts from SunSirs believe that in the short term, the cement market will mainly experience a slight increase.

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