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SunSirs: Demand is Good, Cement Market in East China Rises

November 19 2020 10:26:47     SunSirs (Selena)

According to the monitoring of SunSirs, the cement market in East China continued to rise recently, with the price of 496.00 RMB/ ton on November 12 and 505.80 RMB/ ton on November 17, an increase of 1.98%. The current price is up 4.46% month on month, and the current price is down 1.48% compared with last year.

Since November, the cement demand continues to improve, the East China market is still in the traditional peak season, and the cement market continues to rise. From November 15, 2020 to December 31, 2020, all cement clinker production enterprises (including those using carbide slag to produce clinker) in Heilongjiang Province will implement staggered peak production. Under the influence of staggered peak production, cement inventory decreased rapidly. Generally speaking, the cement demand is stable and good. In order to improve profits, the major cement manufacturers actively ship and the price rises.

In terms of supply, the plan of de capacity in Shanxi Hebei area is gradually implemented, and the supply is slightly tight. The mainstream price of quasi primary wet quenching coke in Shanxi is about 1,980-2,080 RMB/ ton. The demand of downstream steel mills is still good, flat compared with the previous period. In terms of ports, the prices of the two ports in Shandong remained stable for the time being, the inventory decreased slightly, the market trading atmosphere was good, traders quoted actively, and the mainstream spot exchange in the market was 2,300 RMB/ ton of quasi first grade coke. In the future, the recent focus is on the acceptance of the seventh round of increase in steel mills, the implementation of de-capacity in various regions and the change of coke inventory in each link.

Downstream: from January to September, the national real estate development investment was 10,348.4 billion RMB, up 5.6% year-on-year, 1.0% higher than that of January to August. The housing construction area of real estate development enterprises was 8,598.2 million square meters, a year-on-year increase of 3.1%, and the growth rate was 0.2% lower than that in January to August.

According to SunSirs, North China is in the traditional peak season in the near future, with good sales in many places. In order to improve profits, cement manufacturers have pushed up the price of cement. The whole cement market is in a high-speed growth channel. Therefore, SunSirs cement product analysts believe that in a short period of time, China cement market is mainly rising.

 

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