Kunming Cement Market: Multiple Pressure Triggers Price Rise, Sluggish Demand Tests Implementation Effect

in Kunming cement market. The cost of raw materials such as coal continues to rise and the price has been running at a low level for a long time in the early stage. The profit margin of enterprises in the region has been squeezed by a double squeeze, and the demand for price increase and repair is strong. Since

May 19, some major manufacturers in Kunming have notified to raise the price of cement by 30 yuan/ton. At the same time, the surrounding market price recovery also provides some external reference support for this round of price increase, but the current demand-side support is limited, whether the price increase can land smoothly still needs continuous follow-up observation. The driving logic of

this round of price increase in Kunming is clear, and the two lines of cost side and external linkage are synchronized. On the one hand, the rising price of coal directly pushed up the clinker burning cost, and enterprises have been under pressure in the low price range for a long time, and the urgency of restoring profits continues to accumulate; on the other hand, the recovery of cement prices in surrounding provinces and cities provides a reference for local manufacturers to raise prices, which reduces the market risk of unilateral action. The combination of the two forces pushed the major manufacturers in Kunming to reach an agreement to raise prices.

Demand support is weak, and there is a discount

in the range of landing. The core variable that restricts the implementation of this round of price increase lies in the demand side. The current demand support of Kunming market is limited, the actual consumption of cement in downstream infrastructure and housing construction projects has not been significantly increased, the purchaser's acceptance of short-term substantial price increases is limited, and wait-and-see sentiment is more common. Under the background that demand is difficult to follow up effectively, whether the price increase of 30 yuan/ton can be fully transmitted to the market terminal is still under great pressure.

Overall, the price of cement in Kunming has been running to the bottom of the stage, and the downward space is limited. The key to the follow-up trend lies in two points: one is whether the regional demand can show signs of improvement in the seasonal peak season window, providing room for the price increase to be digested; the other is whether the major local manufacturers can maintain a unified price increase implementation discipline, so as to avoid the price increase being aborted due to some enterprises soliciting goods at low prices.