China: Cement Prices Rise Slightly in Some Regions After the Holiday
After the holiday season, cement prices in regions such as Guangxi, Fujian, and Guangdong have shown signs of warming, according to industry insiders.
The slight increase in cement prices in certain areas is primarily due to manufacturers' urgent need to repair profits. Before and after the Spring Festival, staggered production was implemented in various places, resulting in relatively low inventory pressure for manufacturers, which supports the price increase. Despite this, the cement industry is expected to continue facing profit declines this year, although the decrease may narrow compared to previous years.
Hou Linlin, an analyst from Zhuo Chuang Information, predicts that due to tight social capital, a decrease in real estate and infrastructure construction projects compared to previous years, and the market demand's slow recovery after the spring, the demand for cement will be weaker than in previous years. The traditional peak season for the cement industry, from late March to May, may see a seasonal improvement in demand, but the total volume is expected to be less than in previous years.
Source: Thunghua Shun Finance
