Recession in demand is an inexorable trend, we should focus on domestic market, said Kong Xiangzhong


Updated Fri, 14 Jun 2019 10:19:31 GMT


  In the afternoon on May 23, 2019, Standing Vice President of CCA Kong Xiangzhong went to Nanning City in Guangxi Zhuang Autonomous Region to research development situation of Guangxi cement industry, joined the forum with the Chief of Raw Material Division of Industry and Information Technology Department of Guangxi Li Yu, Secretary-General of Guangxi Cement Association Huangchao, Technical Adviser of Guangxi Cement Association Wei Liangguang, Vice Director of Analysis Office of Quality Inspection Station of Guangxi Construction Materials Lai Guanghui, Sales Director of Conch Cement in Guangxi Tao Guoze and Sales Director of CR Cement in Guangxi Feng Weide.

  Cement industry situation in Guangxi and Guangdong was analyzed in the forum. It held that the demand will not remain stable for long, the potential risk in the market is huge, the supply-demand balance in present market might be broken by any new capacity. The association should strengthen the coordination and cooperation of Guangxi and Guangdong markets to obtain healthy development of future cement industry. Representatives of Conch Cement and CR Cement expressed concerns about new capacity of Guangxi and considered that price dumping strategy which adopt by some enterprises is harmful to the market.

  Division Chief Li Yu introduced status of Guangxi economic development. He believed that big businesses should enhance the communication and understanding. Due to the limitation of mineral resources, investment of new line will become more difficult. Kong Xiangzhong thought that we should pay equal attention to economic development and environmental protection of Guangxi, cement is a product which consumes non-renewable resources, it should reflect the value of resource, just like coal and rare earths. To export a large amount of cement is under suspicious of sacrificing resource. Therefore, our cement market should focus on domestic market for long, recession in demand is an inexorable trend with the arrival of market plateau. Even if the existing demand is to remain flat, the extent of surplus will intensify at that time.

  Guangxi and Guangdong are expected to prepare well for reduction of output. The more excellent situation we are in, the more we have to predict the risk of future market development.

  Besides, views of the upgrading project of Guangxi Yufeng Cement have been exchanged in the forum.