NEWS CENTER

The peak season is expected to raise the price of cement stocks or can be expected.


Release time:

Sep 18,2013

According to long-term tracking data show that the fourth quarter cement prices have begun to show signs. At present, cement prices in many places across the country have begun to rise. For example, the Pearl River Delta raised prices by 20-30 yuan per ton last week, the Yangtze River Delta Shanghai, Nanjing and other places raised high-grade cement prices sharply yesterday, and the Changsha-Zhuzhou-Xiangtan region of Hunan increased by 20 yuan per ton yesterday. Since last week, cement prices have also been raised in Guangxi, Guangdong and eastern Guangdong, generally in the range of 20 to 30 yuan per ton. Although the latest data show that the national average cement price was still slightly lower than the previous month last week, as the cement industry entered the traditional peak season in early September, the moderate upward trend in downstream demand remained unchanged, due

According to long-term tracking data show that the fourth quarter cement prices have begun to show signs. At present, cement prices in many places across the country have begun to rise. For example, the Pearl River Delta raised prices by 20-30 yuan per ton last week, the Yangtze River Delta Shanghai, Nanjing and other places raised high-grade cement prices sharply yesterday, and the Changsha-Zhuzhou-Xiangtan region of Hunan increased by 20 yuan per ton yesterday. Since last week, cement prices have also been raised in Guangxi, Guangdong and eastern Guangdong, generally in the range of 20 to 30 yuan per ton.

Although the latest data show that the national average cement price was still slightly lower than the previous month last week, as the cement industry entered the traditional peak season in early September and the moderate upward trend of downstream demand remained unchanged, analysts believe that cement prices will continue to rise strongly after mid-September, and cement stocks are expected to rise in price. In particular, the "Opinions of the State Council on Strengthening Urban Infrastructure Construction" was officially released on the 16th, which will boost cement demand expectations.

From a national perspective, the data obtained show that from September 9 to September 13, the national average cement price fell slightly from the previous week, with an average decline of 1 yuan/ton, mainly affected by the decline in East China and North China, of which the central and southern regions rose by 5 yuan/ton. On the inventory side, the national cement storage ratio was 68 per cent this week, down 0.2 per cent from last week.

In this regard, Xu Yongchao, an analyst in the building materials industry of National Securities, believes that due to the influence of rain weather, the seasonal recovery of cement in September has been slightly lower than expected, and cement prices have also fallen slightly. However, it is worth noting that the moderate increase in cement demand since August has not changed. Although the growth rate of new real estate construction in August has declined due to the base effect, the growth rate of real estate investment has remained relatively stable, and the August data of the Bureau of Statistics also It shows that infrastructure investment exceeded expectations. It can be seen that the output growth rate of steel, glass and other related building materials in August also accelerated significantly, and the national mill operating rate in cement has also increased by 1.5 to 56.6 in September.

Xu Yongchao further said that with the cement industry entering the traditional peak demand season in early September, it is expected to further raise the price of cement on a large scale. In fact, Guangdong, where demand has recovered rapidly, has taken the lead in raising prices. At present, the bulk price of P.O42.5 is 380 yuan per ton, which is 60 yuan higher than the same period last year. Downstream demand in East China and Southwest China is affected by rainfall, but regional enterprises have plans to raise cement prices. After entering mid-September, as long as downstream demand recovers, price increases can be effectively implemented. And Hubei, Shanghai and other places this week cement prices began to rise.

Based on the above analysis, coupled with Xu Yongchao's opinion that the State Council has just issued opinions on strengthening urban infrastructure construction, it will boost the demand expectations for cement and other building materials, and also make the recent cement price increase more confident, such as Nanjing's September urban construction and civil construction entering the peak season, which will increase cement shipments.