Last week, the cement market: the northern off-season off-season shipments are still available

Affected by the seasons, demand in the north became even more bleak. Due to the pressure from inventory, cement prices in parts of Hebei, Shanxi, and Henan dropped by RMB 10-20/ton last week; while due to sunny weather in the south, demand picked up slightly, and sales in Jiangsu, Zhejiang, and Guangdong and Guangxi were both There is an increase to effectively ease the pressure on early inventory.

The specific market conditions in each region are as follows:

North China: Due to the continuous shutdown of downstream projects, shipments dropped sharply. Cement prices in Hebei Shijiazhuang, Baoding, Xingtai and Chongqing were reduced by RMB 10-20/t; Chengde and Qinhuangdao manufacturers launched winter storage prices successively: P. C32.5 bags 250-260 yuan / ton, P. O42.5 bulk 350-360 yuan / ton. Most manufacturers in Inner Mongolia said that they will implement winter storage prices at the end of December, and the current manufacturers are still waiting to see. The manufacturers in the middle and south regions of Shanxi Province have driven shipments and the prices have been reduced by RMB 10-20/t.

East China: Leading companies are mainly insured for shipments, and some small factories are eager to clear the warehouses, prices are slightly lower, but have little impact on the market. With sunny weather, Jiangsu and Zhejiang saw a slight increase in shipments. Shandong rotary kiln enterprises began to limit production on the 15th, but the market response was flat and clinker prices continued to operate at a low level.

Central China: The overall cement market in Henan has been declining. Prices have dropped by RMB 10-15/tonne; Nanyang, Xinyang and other cities have benefited from cooperation among companies and have remained stable. Affected by the weak downstream demand, cement prices in Hengyang, Hunan Province fell by RMB 10-20/t. The Hubei market has stabilized, and the downstream projects have been gradually closed. Manufacturers have limited shipments and stocks are running high.

South China: On the 14th, driven by demand, bagging prices of some manufacturers in Baise and Nanning, Guangxi increased by RMB 10-15/ton, but clinker continued to operate at a low level; while dry water in the Xijiang River decreased, the cement volume in Guangdong decreased, and sales pressure in the region increased. . Due to the sales promotion and inventory clearance before the end of the year, prices of some manufacturers in Guangdong were slightly lower, but the prices of leading companies remained stable, and the market as a whole was operating stably.

Northeast China: Due to the high clinker prices in Heilongjiang, cement winter storage prices remain high overall, and the enthusiasm for getting goods from the downstream is not high. The markets of Jilin and Liaoning stabilized, downstream demand fell sharply, and shipments dropped sharply. Most manufacturers controlled the production and opened up the sales market.

Northwest: The overall change in the Shaanxi-Gansu-Ningxia region was modest, and the downstream demand continued to be weak. Some manufacturers slightly lowered the quotation, but actual shipments were not satisfactory. The Qinghai market basically enters the state of winter storage and the price is reported as: P. C32.5 bags 260 yuan / ton, P. O42.5 bags of 290 yuan / ton.

Southwest: Affected prices of limited electricity in Sichuan Guangyuan and other regions increased slightly, while prices in other regions stabilized. Some manufacturers in Chongqing have increased the volume of their shipments to increase their profit margins, but the weak market conditions are unlikely to change. The overall stability of the Handan area, downstream demand tepid, with the exception of the low-grade cement in southern Fujian slightly lower 20 yuan / ton, most manufacturers to stabilize the price of shipping.

The stock situation of the company From the perspective of the stock situation of leading enterprises, the cement capacity ratio of cement companies in China continues to maintain a medium-to-high level of 60%-80%. Due to the fine weather, small demand seasons in Jiangsu, Zhejiang, and Guangdong and Guangdong, and a slight reduction in storage space, but cold production in the northern region and downstream capital conditions, the manufacturers’ shipments have shrunk. In order to reduce inventory pressure, the production rate was controlled by the mill operating rate. .

Late-stage market forecasts In the short-term, the national market will continue to stabilize during the month. From the demand point of view, due to weather factors, the northern engineering projects have been suspended successively and the demand has been gradually declining. In the south, although the temperatures are suitable, due to the poor condition of the downstream funds, the demand is expected to be tepid. From the perspective of supply, the leading companies in various regions before New Year's Day intend to ship the goods primarily, and even if some small-sized factories cut prices for clearing the stocks, the impact on the market will be general.

It is understood that in North China, East China, Northeast China, Northwest China and even Hubei in the Central China and Guizhou in the southwest, there are plans to stop the kiln. The estimated time is 1-3 months. Cement manufacturers are optimistic about the market outlook, as evident from the limited production plans in various regions. Looking at the long-term perspective, the situation of the downstream capital and construction of the project next year is unpredictable, and the trend of the cement market is not clear.

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