Reporter, lee future beijing
In recent days, national cement prices have declined for the most part, again at 425 cement, and the shanghai market price dropped from 531 yuan/tonne on 7 june to 501 yuan/tonne on 11 june. Prices in fujian market dropped from $524 per ton on 7 june to $510 per ton on 11 june. Prices in jiangsu market dropped from $486 per ton on 7 june to $468 per ton on 11 june。
The deputy secretary-general of the cement association of china, executive director of the digital cement network, chen berlin, said in an interview with a journalist in the wigand times that “the price reduction in cement is normal and within reasonable range. The increase in the cement sector during the year was more or less similar to the letter `w', which fell in one or three quarters and rose in two or four quarters. But the price is either a few months or probably that. The price of cement will generally decline in may and increase in august.”
According to the china cement network, the cement price index has continued to decline in the recent past. Cempi fell from 159. 34 on 20 may to 153. 33 on 10 june. The china-east cement price index, code-named p. O. 42. 5 strength, declined from 172. 35 on 14 may to 162. 93 on 9 june。
In addition to the overall movement of cement, which affected the current fall in cement prices, chen berlin told journalists that another reason was the longer rainy season and more rain this year. When it rains, many works are stopped and the duration is prolonged。
“a further reason for the fall in cement prices this year, unlike in previous years, was the sharp rise in steel prices during the previous period. The sharp rise in steel prices has caused some companies to exceed their construction budgets, affecting both the pace of construction of the project and creating larger stocks of cement.” according to chen berlin, “the fall in cement prices this time has not had a significant impact on upstream and downstream and related enterprises, as cement itself is a cyclical industry and is now in a low-season situation, with the companies involved having options to deal with. And in recent years, cement has risen by a similar magnitude, without sudden rise or fall, within a reasonable range.”
“cement prices in east china have increased since last august. The concentration of factors affecting steel prices, the depreciation of the united states dollar, the increase in raw materials prices, the insufficient stock and capacity of cement, and the expected increase in demand for cement for economic recovery, have led to successive increases in cement prices. As we can see, the concentration of factors affecting price increases is rather rare, the market response has been slightly excessive and the price reversal is normal.” “in the case of east china cement, the demand for building materials, such as cement, has fallen, cement has a transport radius and east china cement cannot be sold to other regions where demand is high. In the face of declining demand in the local market, oversupply and price reversals are consistent with market patterns.”
