As the end of the year approaches, the national cement market is in a booming and prosperous situation. This year, the two most dazzling industries in China (steel and cement) are the only industry left in cement. Recently, cement supply is in short supply in some areas of Shandong, and cement trucks are queuing up overnight to buy.
At noon on November 28, more than 50 cement trucks were lined up in front of a cement factory in Shandong. It is understood that these more than 50 vehicles just arrived this morning. Previously, there was a queuing phenomenon due to enterprise equipment failures, which had just been alleviated in the past two days. Yesterday, the supply shortage of clinker , mixed materials, etc. was recurred.
After entering the fourth quarter, most regional construction sites entered the end of the year to catch up with the construction period. The price increase of cement and sand and gravel in major regions of the country has led to the rise of commercial mixed prices, which is accelerating the stage of a vigorous "national price increase drama". So how was this drama staged?
Phase 1: Confrontation with
Last year, an open letter jointly initiated by 22 ready-mixed concrete companies in Xi'an. The recipient of the letter is Nie Zhongqiu, deputy mayor of Xi'an. The letter focused on the impact of the increase in cement and sand and gravel aggregates on the survival and development of the local ready-mixed concrete industry at that time. The
letter pointed out that "the disorderly price increase of cement enterprises has caused market chaos." "And inform concrete companies that if they do not sign and confirm the price increase letter, they will stop the supply of cement. This move also indirectly triggered the price increase trend of other raw materials for ready-mixed concrete (such as fly ash, ore powder , etc.), which caused a fatal blow to the concrete companies that were already in danger." The
letter submitted a request to Xi'an Deputy Mayor Nie Zhongqiu in the name of 22 local ready-mixed concrete companies, hoping to launch an anti-monopoly investigation against cement companies.
At the same time, Hubei Wuhan Concrete Association issued an initiative stating that due to the disorderly surge in cement and other raw materials, the concrete industry has adopted some rights protection measures. The Wuhan Concrete Association has always called on member units to adopt legitimate and legal channels to safeguard the rights and interests of the industry and actively reflect the industry's demands to government departments.
Stage 2: Compromise
Due to the continued rise of national cement prices, downstream concrete companies have been greatly affected, but the biggest difference this time is that the concrete companies did not issue letters to accuse the price increase like before, but just issued some early warning notices lightly:
The third stage: Following the increase in
According to Cement People's Network, after experiencing the first two stages, cement prices continued to rise rapidly, and there was no intention of stopping. The concrete associations in various regions finally couldn't sit still and issued price increases letters.
After experiencing the confrontation between commercial mixing and cement and sand and gravel, it will naturally be transmitted to downstream construction sites. At present, many construction sites are facing a situation where there is no information available. There are long queues in front of cement enterprises every day, and sand and gravel also need to be purchased across provinces and across countries. Concrete is forced to follow up, and many construction sites have been postponed or suspended, and the price system of the entire industrial chain is facing out of control.
Phase 4: Prices rise one after another bring huge profits in the industry, bringing a wave of investment and factory construction
Cement, sand and gravel, and concrete are industries with relatively overcapacity. The sales trend in the past two years has brought about the "investment fever" of related industry projects. Cement projects have been started one after another through capacity replacement and ignition and production. At the same time, investment promotion projects in various places for the sand and gravel industry have also been launched one after another.
Several large-scale sand and gravel aggregate projects were implemented in November alone.
Recently, the Changjiu (Shenshan) limestone mine comprehensive development project of China Power Construction Anhui Changjiu New Materials Co., Ltd. is located in Chizhou, Anhui. It is understood that this project is the largest investment promotion project in Chizhou City, Anhui, and it is also the largest limestone mine for development in China. After the project is put into production, its output will be the world's largest, with a total output value of over 100 billion yuan.
Hubei Province's "Announcement on the Completion Environmental Protection Acceptance of the Stone Processing Project of Daye Xinwanda Stone Co., Ltd." was released. The actual total investment of the project is 50 million yuan, and the annual output of stone and stone powder is 1.5 million tons.
Si Shui County Investment Promotion Bureau of Shandong Province went to Zhegou Town to investigate the construction of the new construction (expanded) project. The total investment was 117.8 million yuan. The wet fine graded construction aggregate production line of Sishui Kaihui Ecological Technology Co., Ltd. invested by Sishui Huifeng is under construction.
In mid-November, the construction of the Weixia New Materials Limestone Comprehensive Utilization Development New Materials Project officially started. The Weixia New Materials project is invested and constructed by Hunan Changde Weixia New Materials Co., Ltd. The project is located in Linli County, Hunan Province. It has an investment of 250 million yuan. It produces 3 million tons of sand and gravel aggregates annually. It can achieve sales revenue of 520 million yuan and pays 50 million yuan in taxes, driving more than 180 local jobs.
In early November, Northern Heavy Industry Group Co., Ltd. and Hebei Jiuzhou Mining Co., Ltd. signed a signing ceremony for the mining and supply of Jingxing No. 01 mining equipment and strategic cooperation at Jingxing County in Hebei Province.
The mine No. 01 covers an area of about 6 square kilometers, has a limestone reserve of more than 300 million tons, and a planned production capacity of 20 million tons per year. Jiuzhou Mining's first phase investment will reach more than 2 billion yuan, and the second phase investment will reach more than 4 billion yuan. With the post-mining and reconstruction of the mining industry chain and the mining area, the later investment will exceed 10 billion yuan.
Cement project, there have been many production lines ignition and production since this year:
On March 28, 2018, Haolong Group invested in Guizhou Province, the first phase of the 2X4500t/d cement clinker production line project of Haolong Group in Guizhou Province - Guizhou Haolong Shengjing Building Materials Co., Ltd., was officially ignited and put into production.
On the morning of August 8, 2018, Shanxi Jinxing Aolong Building Materials Co., Ltd.'s 4500-ton clinker production line was officially ignited and put into operation.
In August 2018, Huaxin Cement (Tibet) Co., Ltd. held a trial production ignition and commissioning ceremony for the third-line kiln system.
htmlOn August 25, a new cement production line with a daily output of 5,000 tons was ignited and put into production at Gansu Lanzhou Licorice Environmental Protection Building Materials Co., Ltd.
Similar projects have been started in a concentrated manner in the past two years. Cement, sand and gravel, and commercial mixed industries are over-profit industries. Driven by the strong production and sales in the past two years, products have frequently experienced supply in short supply, prices have been rising steadily, and enterprises are making money every day. Under the current weak downstream demand, how long can we enjoy such a good day? It is intriguing!
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