The demand of the national cement market has recovered

In recent years, cement prices in many parts of the country have risen sharply, and Northern cement enterprises have also realized "counter attack". In the first three quarters, the performance has risen significantly, with a good momentum. The reporter learned from the China Cement Association that since this year, the national cement prices have been rising year on year. Data shows that the average price of 42.5 cement in the first three quarters reached 432 CNY/ton (excluding Tibet), up 13 CNY/ton from the same period last year, up 3% year on year.

According to the data released by the Ministry of industry and information technology, from January to August this year, the national cement output was 1.47 billion tons, a year-on-year increase of 7%, among which the cement output in August was 210 million tons, a year-on-year increase of 5.1%. From January to July, the national cement industry achieved an operating revenue of 542.5 billion yuan, a year-on-year increase of 16.2%, 11.3 percentage points higher than the growth rate of the whole industry; the total profit of 99.7 billion yuan, a year-on-year increase of 27.2%, 28.9 percentage points higher than the growth rate of the whole industry. The overall increase of cement price is due to the obvious increase of market demand in North China, northwest and other regions compared with the same period last year. Kong Xiangzhong, executive chairman of China Cement Association, told the Economic Daily that since this year, the cement industry has earnestly implemented the decision-making and deployment of the Party Central Committee and the State Council, firmly established and implemented the new development concept, and further promoted the supply side structural reform, which has laid a good foundation for the overall stable operation of the industry, the growth of product output and the stable and sound economic benefits. Reviewing the trend of cement price in China, since the second half of 2018, cement prices in most parts of the country have been the main actors.

Since September this year, cement prices in all parts of the country have shown an upward trend. From a regional perspective, in the first three quarters of this year, the largest increase in cement prices in the whole country was in North China, with a year-on-year growth of 9.6%, followed by central and southern China, East China and Northwest China, and the cement prices in Northeast China were still in a year-on-year downward trend. "The market in North China recovered, and the market in Northeast China continued to decline. The market in Northwest China was better than that in the previous year. Overall, under the impetus of supply side structural reform in the cement industry, the profitability of cement enterprises in the North has been improved. The first three quarters results of some northern enterprises also reflect the rise of cement market in their region. Jidong Cement (15.550, 0.09, 0.58%) announced on the evening of October 9 that the company expected to achieve a net profit of 2.43 billion yuan to 2.48 billion yuan in the first three quarters, a year-on-year increase of 33.76% to 36.52%. Gansu Qilianshan (10.220, 0.04, 0.39%) Cement Group Co., Ltd. issued a notice on October 10 to increase its performance in the third quarter of 2019. The company expects to achieve a net profit of about 1.03 billion yuan attributable to shareholders of Listed Companies in the first three quarters of 2019, with a year-on-year growth of about 87%. It can be seen that the northern cement enterprises realized "counter attack" through the substantial increase of the first three quarters' performance. As for the company's performance growth, Jidong Cement said that in the first three quarters of 2019, it benefited from the in-depth promotion of the supply side structural reform of the cement industry and the positive impact of the improvement of market demand in the core areas, the market order continued to improve, the company's comprehensive sales of cement and clinker increased year-on-year, and the price further returned rationally. Next, the company will further increase the management intensity, vigorously promote the "optimization" and strategic marketing of production enterprises, and promote the continuous improvement of operation quality and economic efficiency.

The rising performance of northern cement enterprises is mainly due to the better local market demand than the same period of last year. " "In addition, some provinces have a certain amount of products shipped south, and the implementation of peak shifting production is better than in previous years," Kong said. Although the price of cement in some areas is rising well, the price of cement is rising and falling nationwide, especially in Guizhou, Ningxia, Liaoning and other places where the price of cement is the lowest in China and there is room for supplement. In this regard, Chen Bolin, President of digital cement network, believes that the overall cement price in China has been at a high level, and it is unlikely to rise again. According to Kong Xiangzhong, although the growth rate of cement production from January to August this year reached 6.8%, the growth rate will decline in the fourth quarter. "The annual cement output is expected to be 2.27 billion tons, with a growth rate of about 4%." At present, the overall operation situation of cement industry is stable and rising. For how to maintain the benefit growth in the next industry, Kong Xiangzhong believes that the scientific and technological innovation of cement enterprises will significantly improve their competitiveness.

In the information age, the improvement of technological innovation ability of enterprises is more dependent on technology integration outside the industry. The policy environment and market environment of scientific and technological innovation are often more important than innovation capability. " Kong Xiangzhong said that China's cement production capacity and consumption are in the first place in the world, and the innovation capacity of China's cement is growing. "At present, the establishment of enterprise R & D innovation center has become a symbol of innovation ability of cement enterprises. With the successful development and application of a large number of scientific and technological achievements such as collaborative disposal technology of cement kiln, NOx emission reduction, intelligent cement manufacturing and so on, the scientific and technological innovation of enterprises has brought efficiency improvement and production and operation cost reduction, and the market competitiveness of enterprises will be enhanced. " According to Kong Xiangzhong, in the case of serious overcapacity, low price dumping of products will erode the benefits of technological innovation. "Therefore, only by strengthening the innovation mechanism of industry self-discipline can we keep the market efficiency of scientific and technological innovation and guarantee the stable growth of enterprise profits."