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Cement Prices in these regions are expected to still perform

Date:2019-01-28 15:59     writer:admin     Views:

    The newly added capacity was basically the same as last year, and the total Capacity was not a big impact, but the impact on various regions was different. In 18 years, the total new clinker production capacity is about 20.43 million tons, which is basically the same as the new clinker production capacity in 17 years. The impact rate of the national total capacity is about 1.1%. The 18-year new ignition clinker production line accounts for the southwest region. Compared with the highest, the East China region is less affected by new capacity.
      The wrong peak environmental protection does not make on-size-fits-all, cancel the low-standard cement, which will help the leading enterprises to increase their concentration. “Do not make a one-size-fits-all approach” to form an environmental-friendly governance positive incentive orientation, which will help eliminate backward production capacity and clear the standard of high-standard cement clinker. Under the pressure of high clinker and control, the cost of grinding station will follow. As the prices rises, the profit margin will be squeezed, and the concentration of leading enterprises will increase.
In the structural differentiation of the real estate market, overall or facing downward pressure, the infrastructure complements the short-board or becomes the growth driver of cement demand, focusing on the major strategies to promote the regional opportunities of the cement industry brought by infrastructure:
East China region: The impact of new capacity is not big, and the environmental impact of the peaks is strengthened. Under the strategy of the Shanghai-Hangzhou-Dongwan District and the Yangtze River Economic Belt, the Yangtze River Delta integration will drive and extend to the upper reaches of the Yangtze River. The demand for real estate and infrastructure is expected to be relatively stable. While the clinker capacity utilization rate is high, the inventory is at a relatively low level. It is expected that the price will still perform well under the premise of stable demand in 19 years.
North China region: The new supply capacity is less stable, and the trend of normal peaking will continue. The integration of Beijing-Tianjin-Hebei integration will lead to a significant improvement in demand for large-scale construction in Xiong’an New District. We believe that in the strength of supply and demand is a more powerful party. The improvement in demand will lead to an increase in capacity utilization and destocking. It is expected to usher in the improvement of the cement price center and lead to profit improvement.
Midwest: Strengthening the infrastructure to complement the short-term efforts in the central and western regions is one of the key areas. The demand for poverty alleviation in the southwestern rural areas will continue to be strong. The Central South region, especially the South China region, will be promoted by the Guangdong, Hong Kong, Macao and Dawan Districts, and the demand for real estate and infrastructure will be relatively strong. The current inventory is at a low level. The clinker capacity utilization rate in the two regions of Central and South China is high, and the profitability of the enterprise is relatively large, it will exert certain pressure on the supply pattern of the Yunnan-Guizhou region, but it must also to a lesser extent, the cost of poverty alleviation construction is reduced, which is conducive to the smooth progress of related construction work.

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