SunSirs: Cement Prices Show North-South Divergence as Some Regions Repeatedly Push for Increases

Last week, the national cement market exhibited a divergent pattern: “Stabilization in Northern Markets, Mixed Trends in Southern Markets.” Northeast and Northwest markets entered the year-end off-season, with construction sites halted or closed for winter, leaving little room for market fluctuations. Central and Southern Hebei in North China repeatedly attempted price hikes, but implementation was poor, with actual prices mostly stabilizing. In East China, Jiangsu and Jiangxi markets saw an expanding downward trend, with the overall market potentially facing downward pressure. In Central and South China, Guangdong and Hubei prices rose consecutively, though the actual increase narrowed, while Hunan and Guangxi remained stable. In Southwest China, Yunnan and Guizhou saw declining transactions, while Sichuan and Chongqing remained stable.

East China Region

Jiangsu: Amidst a situation of “weak supply and demand,” some high-priced market enterprises in the region lacked sufficient price support, leading to an expanding downward trend. Around December 26, major enterprises in Huai'an reduced transaction prices by approximately 20-35 RMB/ton. Short-term downward pressure is expected in markets including central and southern Jiangsu.

Zhejiang: On December 13, leading enterprises in Zhejiang notified price hikes of 20 RMB/ton for areas like Jinquli. However, implementation has been generally weak, with transaction prices showing no significant fluctuation compared to previous periods.

Anhui: Cement prices in Anhui will remain stable in the short term. However, with the New Year holiday approaching, if demand fails to pick up and considering that some regional markets already show signs of price declines, the overall market may experience minor adjustments and fluctuations after January.

Fujian: Although the proposed 10 RMB/ton increase in Fujian cement prices at the beginning of the month did not materialize, it helped stabilize the market. Recently, cement prices across provincial markets show no clear downward trend, with overall enterprise quotations remaining stable.

Jiangxi: Since late last month, some enterprises have quietly reduced transaction prices by 10-20 RMB/ton in markets including Western Jiangxi, Southern Jiangxi, and Southeastern Jiangxi. However, to stabilize market prices, some regional enterprises plan to reinstate prices and raise them by 20-30 RMB/ton in these discounted areas by month-end.

Shandong: Regional price differentiation among major provincial cement producers remains unclear recently, with overall external quotations largely stable.

Central-Southern Region

Guangdong: Following earlier price hikes of 10-30 RMB/ton in Qingyuan, Shaoguan, Yangjiang, and Yunfu during the first half of the month, leading enterprises in these northern Guangdong regions have again notified a 10 RMB/ton increase for bagged cement and a 15 RMB/ton rise for bulk cement. All cement varieties in Yangjiang and Yunfu will see a 30 RMB/ton increase. Currently, most enterprises in Northern Guangdong have seen reasonable implementation of this round of increases, while actual implementation in Yangjiang and Yunfu has narrowed.

Guangxi: Overall market demand continues to be weak and stable, with leading enterprises maintaining steady quotations.

Hubei: Regional leading enterprises announced cement price increases of 30 RMB/ton across multiple markets starting on the 19th. Specific implementation details are pending verification.

Hunan: The Hunan cement market faces significant resistance to price hikes due to low-priced cement inflows from surrounding areas and local market competition, with some prices showing slight softening.

Henan: The cement price hike of 20 RMB/ton implemented in Henan on the 16th has retreated again. Market supply and demand remain insufficient, and influenced by low prices in surrounding areas, actual implementation has been limited.

Southwest Region

Sichuan-Chongqing: Market operations remain stable, with cement transaction prices holding steady and no significant fluctuations observed.

Yunnan: Facing low-priced cement competition from Yuxi and Kunming, prices in Dali and Lijiang regions declined by 20-30 RMB/ton from previous highs, intensifying market competition.

Guizhou: Persistently weak demand continues to pressure the industry. Prices in central and northern Guizhou regions fell by 10-20 RMB/ton, while other areas maintained weak stability this week—specific developments require further observation.

Northwest Region

Shaanxi: The Guanzhong region attempted to raise cement prices last week, but cost pass-through was hindered, resulting in limited actual increases. Leading enterprises still intend to push for further increases, though this is primarily aimed at raising prices early next year.

Gansu, Ningxia, Qinghai: These areas have entered the traditional winter hiatus, with both supply and demand slowing simultaneously.

North China Region

Beijing-Tianjin-Hebei: Despite multiple attempts at price hikes in central and southern Hebei, actual transactions failed to follow suit, leaving overall prices weak and stable. With temperatures continuing to drop and construction sites shutting down, regional market prices are expected to stabilize before year-end.

Shanxi, Inner Mongolia: Both supply and demand are weak, entering the traditional off-season, with prices maintaining a weak and stable trend.

Northeast Region

The Northeast market concluded operations in late December. Although major producers in Harbin, Shenyang, and other locations announced cement price hikes of 30-50 RMB/ton, construction site shutdowns and zero demand meant transactions failed to follow suit, rendering the price adjustments meaningless. Current market inventories are ample, with production and sales largely stagnant. Prices remain stable and are expected to remain locked in throughout the winter until construction resumes next March.

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