Demand season is about to come cement prices will pick up

Recently, the Department of Market Operations of the Ministry of Commerce forecasted that the cement price will fall for three consecutive weeks and it is expected that the price will still fall slightly in the later period.

"The trend of late price, do not have to be too pessimistic." Jinyuan securities industry analyst Wang Hao said that although not rule out prices in some areas will decline, but the decline is narrow. Chen Wen, an industry researcher at Henyep Securities, also believes that due to the impact of the weather, the demand in eastern China has been adjusted slightly and the fall in prices is normal. After going out of the off-season, the demand for cement will recover and the price recovery will be a high probability event.

“On the whole, after entering the peak season, combined with the varying degrees of power restrictions in different regions, cement prices will be promoted to rebound. Following the progress of affordable housing construction and water conservancy infrastructure construction, it is expected that the start-up volume will be higher in the second half of the year than in the first half of the year, and the weather will improve after the start of autumn. It is conducive to construction. From mid-August to early September, the position of the inflection point in the later period can be basically judged. It should be noted that the cement price is generally used in comparison with the ring data and is not directly transmitted to the performance. The performance of the listed company uses the year-on-year data. From the perspective of the release of the interim report, the profit growth of the cement industry in the first half of the year was still considerable. According to data from the Ministry of Industry and Information Technology, the benefits of the cement industry in the first half of the year have increased significantly. In the first five months, the cement industry realized a profit of 35.2 billion yuan, an increase of 170% year-on-year.