[SMM Analysis] National demand for widely rising cement prices and Building Materials may be affected

SMM net news: since the end of March opened a new round of rebound, to the Yangtze River Delta, Pearl River Delta region as the representative of the southern cement prices continue to rise. Recently, cement prices in the relevant areas continue to rise steadily, and some regions have announced a fifth round of price increases. Industry insiders believe that, on the whole, under the support of the rise in clinker prices along the Yangtze River, it is expected that cement prices in Anhui, Zhejiang, Shanghai and Jiangxi and other surrounding areas are expected to usher in another round of general market.

Shortage of cement in some areas, demand for building materials may be affected

SMM steel on the downstream building materials market research data show that recently Jiangsu and Zhejiang part of the site feedback, cement, sand and stone supply is tight, coupled with financial problems affecting the construction period. Under the influence of environmental protection inspection and other factors, there is a shortage of cement and sand supply, and the purchase price has risen sharply. since late March, the average increase in Jiangsu and Zhejiang regions has reached 110 yuan / ton (market quotation 400 ≤ 450 yuan / ton). SMM Iron and Steel investigated 10 construction sites in Jiangsu and Zhejiang, and learned that because of the lack of resources and the shortage of cement, the requirements for funds for the procurement of building materials are constantly increasing. if the funds are abundant, it will not affect the supply, and the construction site will still start normally. Such as Shanghai, Hangzhou, Nanjing, Wenzhou, Quzhou and other places. At the same time, towards the middle of the year, there are certain financial problems at some sites, and the problem may not be alleviated until early July, SMM Steel will continue to pay attention.

Cement production is below last year's level. prices continue to rise

Data from the National Bureau of Statistics, China cement Network, China cement Research Institute

May 21 all over the price summary: nationwide widespread rise

1. Notice of increase in cement prices in Ganzhou and Northeast Jiangxi

2. Northwest: there is more news of kiln shutdown, Ninggan raised by 10 ≤ 50 yuan / ton

3. South-central: the market is big, stable, small, local, rising, rising.

4. East China: prices will rise in some provinces and slow down in the Yangtze River Delta

5. Northeast: overall cement price raised to 430 × 450 yuan / ton

6. North China: kiln shutdown prices rise sharply in some areas

1. National data

Demand for cement in the first four months of this year was lower than in previous years, dragged down by the first quarter and weak downstream demand. In terms of cement production, cement production was 584 million tons in January-April 2018 and 211 million tons in April. Compared with the same period last year, cement production in the same caliber fell 1.9% in January-April and 3.2% in April. it is calculated that cement production in January-April actually fell 11.69%, and in April it actually fell 5.72%.

2. Regional data

From January to April 2018, the country produced 584 million tons of cement, down 1.9 percent from the same period last year (11.33 percent down on the same period last year), of which 18 provinces, such as Heilongjiang, Qinghai, and Ningxia, declined over the same period last year, and Heilongjiang fell by nearly 40 percent. Inner Mongolia, Jilin, Qinghai and Ningxia fell by more than 20%; Only Tianjin and Guangxi increased by more than 10% compared with the same period last year, reaching 18% and 11.6% respectively.

3. Price index

On 14 May, the National Bureau of Statistics announced the price changes in the market for important means of production in the field of circulation throughout the country in early May. the current price of P.C 32.5R bagged cement on the cement side was 404.9 yuan per ton, an increase of 4 yuan over the same period last year. Increase of 1%; P.O 42.5 the current price of bulk cement was 434.8 yuan per ton, an increase of 4.1 yuan, or 1 per cent, over the previous period.