Cement production has fallen to its lowest level in nearly 11 years, cement prices have continued to fall, and industry-wide profits are expected to shrink sharply year-on-year. For the cement industry, the past 2022 is destined to be a sad and helpless year, and the "Waterloo" market situation has also brought many cement enterprises to the "edge of life and death". The Yangtze River Delta
has always been the vane of the cement market, and what is the situation of Zhejiang in the center of the vane in 2022?
The demand is relatively stable and the price drop is relatively large
. "The volume increases and the price decreases, and the benefit is one third of 2021." A person in charge of a large cement enterprise in Hangzhou told China Cement Network that although the price of cement in 2022 is unsatisfactory, the indicators of the enterprise are still relatively excellent. A cement enterprise
in Jiaxing is in a similar situation in 2021. "Cement sales in 2022 exceeded 7.5 million tons, an increase of about 200,000 tons over 2021." The person in charge of the production of the enterprise disclosed that due to the depressed market, the cement price performance was not good.
Even if there is a decline in sales of cement enterprises, the decline is smaller than that of cement enterprises in most provinces of the country. "In 2022, cement sales fell by about 10% year-on-year." "The annual cement sales volume in 2022 is more than 6.5 million tons, which is less than 7 million tons in 2021, and the situation is barely better." Two cement enterprises in Quzhou and Huzhou told China Cement Network. According to
the comprehensive survey, the demand for cement in Zhejiang remained relatively stable in 2022 , but the price of cement fell sharply. As can be seen
from the data of the National Bureau of Statistics, the cement output of Zhejiang Province from January to November 2022 was 119 million tons, down 3.46% from the same period last year, and the demand situation was better than that of most parts of the country. Zhejiang cement price trend chart tracked by
China Cement Network shows that since the beginning of 2022, Zhejiang cement price has been "falling endlessly", and the cement price at the end of the year has fallen by more than 150 yuan/ton compared with the beginning of the year, and the average price of the whole year has fallen by a large margin.
Although cement demand "outperforms" most provinces, the continuous decline in cement prices and the high cost of coal have swallowed up the profits of Zhejiang cement enterprises. "Trembling", "barely" and "taking one step at a time" have become the summary of most cement enterprises for 2022. There are many
uncertainties in
2023. "Overall, 2023 is not optimistic." A person in charge of a large cement enterprise in Hangzhou believes that the decline in total market demand and the uncertainty of key projects and real estate investment projects in East China are all "not optimistic" reasons. The production supervisor of a cement enterprise
in Jiaxing said that there are many uncertainties in 2023, such as changes in the international situation and the landing of infrastructure investment, so it is difficult to predict the market situation throughout the year, even if the enterprise has a large capacity and strong competitiveness. However, the volatility of the market is also "lethal" to enterprises, and the future can only "take one step at a time."
"In the first half of 2023, the pressure should be great, and in the second half of the year, it depends on the landing of key projects." The leaders of two cement enterprises in Quzhou and Huzhou expressed similar views.
Faced with the slightly pessimistic expectations in 2023, how should Zhejiang cement enterprises deal with it? "Cost reduction" has become a word mentioned many times by cement enterprises.
First, reduce costs and increase efficiency, and strengthen internal management. Second, transformation, upgrading and optimization of technical indicators. The three is to avoid vicious price competition. A person in charge of a large cement enterprise in Hangzhou told China Cement Network, "In addition, it should be noted that factories without mine resources will be difficult to survive in the future."
Just a few days ago, the General Office of the Zhejiang Provincial Government issued the Implementation Plan for Expanding Effective Investment in Zhejiang Province (2023-2027). It is mentioned that more than 1000 major projects in the province are planned to be promoted on a rolling basis every year, with an annual investment of more than 1 trillion yuan, which provides strong support for the province to promote the "two first".
It is believed that with the advancement of the "thousand trillion" project, the confidence of Zhejiang cement enterprises will also be boosted to a large extent.
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