Cement Demand Is Declining

   Currently, domestic cement demand has entered a downward cycle, and it will continue to decline rapidly in the coming years. During this phase, it is particularly important for the industry to unify its thinking and work together to address the situation. However, some current phenomena and practices may have serious consequences for many companies, thereby affecting the future landscape of the cement industry.

1. The chaos in thinking has led to internal divisions within large cement companies, losing the foundation for collaboration. This is the main factor causing a significant decline in cement industry profits in the second half of this year.

2. Due to the lack of coordination foundation next year, it is expected that the cement industry will likely experience a price decline at the beginning of the year, with even more intense competition.

3. Even if production capacity is increased according to approval, there will still be a surplus of over 30% cement without coordination, leading to intense competition in the industry.

4. Some companies in the industry want to change the cement industry's landscape by modifying rules, which has angered competitive companies like Hai Luo, inevitably causing competitive companies to abandon collaboration and adopt complete competition to eliminate capacity.

Therefore, this rule adjustment might move in the opposite direction of the main promoters, accelerating the exit of less competitive companies and truly accelerating industry consolidation for high-quality development.

Since September this year, C8 and leaders of large enterprises as well as sales executives from various companies have reached consensus on staggered pricing and price adjustments at least ten times. This was mainly due to the inability to reach agreement in Hubei, which led to failure and wasted a valuable opportunity to improve the efficiency of the national cement industry.

From：https://www.ccement.com/