Cement hit its largest decline in 10 years! The performance of various cement groups has plummeted!
On July 17th, the National Bureau of Statistics released relevant data on industrial production and operation for the first half of 2023.
According to regulatory data, the Henan region has recently fallen to a relatively low level in various regions of the country.
Compared to early January this year, it fell by 66.7 yuan/ton, a decrease of 17.09%.
According to data released by the National Bureau of Statistics in recent years, the national cement production began to decline after reaching a high level in 2014.
In 2022, the national cement production reached 2.13 billion tons, a year-on-year decrease of 10.5%, marking the largest decline in nearly a decade.
The recently announced price for P.O42.5 bulk cement in early July 2023 was 323.6 yuan/ton, a decrease of 54.2 yuan/ton or 14.35% compared to the same period last year at 377.8 yuan/ton.
Tianjin quoted 290-310 yuan/ton in mid July, a decrease of 170 yuan/ton compared to 460-480 yuan/ton in the same period last year.
The Henan region has become a price depression, with reference prices as low as 185 yuan/ton.
In the first half of the year, the added value of industries above designated size increased by 3.8% year-on-year.
In the past five years, after experiencing a peak production of 2.35 billion tons in 2019, the cement industry has experienced sluggish demand, sluggish peak seasons, high inventory, and a simultaneous decline in quantity and price.
It can be seen that since reaching 1.147 billion tons in the first half of 2021, cement production has turned around and declined, and in the first half of the past two years, it has been below 1 billion tons.
In June, the added value of industries above designated size increased by 4.4% year-on-year in real terms.
Compared to data from the past five years, cement production has experienced the largest decline in 10 years.
Data source: According to recent quotes from over 600 key monitored enterprises by the National Bureau of Statistics, regions such as Beijing, Tianjin, Hebei, and Tibet have all experienced a decrease of over 100 yuan/ton compared to the same period last year.
It cannot be ignored that in recent years, the annual cement production has reached over 3000 times that of the early days of the founding of the People’s Republic of China.
Cement prices have broken through the lowest prices in the same period in the past five years, breaking through new lows in the same period in the past five years.
The factory reference prices for P.O42.5 bulk cement range from 185 to 270 yuan/ton, with multiple companies in Nanyang City and Xinxiang City quoting prices below 200 yuan/ton
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Among them, the cumulative cement production in China reached 953 million tons, a year-on-year increase of 1.3% (with the same caliber), a decrease of 0.6 percentage points compared to January May, a decrease of 15% in the same period last year, and the national cement production in the first half of the year was the lowest level in the same period of nearly 12 years; In June, the monthly cement production in China was 185 million tons, a slight decrease of 1.5% year-on-year and 5.8% month on month, reaching the lowest level in a single month since 2011.
