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Various regions have launched staggered production plans to alleviate the supply-demand contradiction in the cement market

Among them, 109 clinker production lines of 89 all-round line cement enterprises in Sichuan Province have all implemented off peak production; In principle, the total staggered production time in spring, summer, and autumn in Shanxi Province should not be less than 70 days, with a preliminary arrangement of 40 days in the second quarter, which will be executed in two installments; In May, Jiangxi Province is producing 48 clinker production lines with a unified staggered production period of 5 days.

Sponsored by: Enterprise Culture Branch of China Cement Association: Yan Jiawang, a member of China calligrapher’s Association, launched a new round of peak shift production plan to alleviate the contradiction between cement supply and demand.

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The reporter learned from the China Cement Association that in the first quarter, the demand for the cement industry was weak and the foundation was still not solid.

In order to alleviate the inventory pressure and improve the relationship between market supply and demand, nearly 20 provinces across the country have successively released a new round of peak shift production plans for cement.

In the first quarter, with the continuous recovery of cement demand and strict implementation of staggered production by enterprises, cement inventory decreased month on month, but inventory levels remained at historical highs.

In mid April, the national cement inventory reached its highest point in nearly five years, with the storage capacity ratio approaching an absolute high of 70%.

In addition, the rebound in cement prices did not fully cover the cost increase, resulting in the industry falling into a loss situation.

According to monitoring, the cement storage capacity ratio in the first quarter was 67%, 4 percentage points higher than the same period last year.

Zhu Junbi, with the recent increase in rainy weather, the demand for cement market has declined.

Cement inventory did not decrease but increased, and the rate of increase was fast.

“Chen Berlin, Deputy Secretary General of the China Cement Association and President of Digital Cement Network, introduced the challenges of weak demand, high cost, high inventory, and low efficiency, Cement companies in various regions increase peak production during peak seasons to alleviate market supply and demand conflicts and maintain relative market stability
.

At the end of March and the beginning of April, it was supposed to be the traditional peak season for the cement industry, but the demand performance of the cement market was not strong during the peak season.

All staggered production plans must be fully implemented before May 31st; Shandong Province will implement staggered production twice from May to July for 30 days; Liaoning Province plans to suspend production for 15 days from April 27th to May 27th.

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