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The national cement price has repeatedly hit new highs, and there is no stock in the peak season

2021-10-11

Recently, the dual control of energy consumption has continued to increase in many places. Following Guangxi, Guangdong, Yunnan and Jiangsu, Zhejiang, Shandong and Henan have also begun to implement power load reduction measures for key energy consuming enterprises within their jurisdiction.


In addition, the power supply is tight, and many underground power rationing and power outage notices have been issued, which has affected the production of cement enterprises, resulting in varying degrees of shortage of cement supply in many places and frequent imbalance between market supply and demand. In addition, with the recent rapid rise in coal prices, cement production costs are also rising. Under the attack of multiple factors, cement prices in many places have risen to a record high.


At the same time, under the impact of the "price rise tide" in the areas with strict dual control of energy consumption, suspension and production restriction, it also affected and driven the rise of cement prices in the surrounding areas, gradually forming a national general rising trend.


Energy consumption double control "one size fits all" cement production is seriously limited


From August to September, the cement market rebounded "as expected", but what was "unexpected" was the sudden severe measures of dual control of energy consumption and power and production restriction, which "added fuel to the fire" of the market that had started.


At the same time, due to the shortage of electricity, the scope of power restriction is also expanding. At present, the three northeastern provinces have also entered the ranks of power rationing. As one of the high energy consuming industries, it is reasonable for cement to be required to stop and limit production.


Soaring coal prices and rising cement costs


On the one hand, there is a shortage of supply in the peak demand season, which has raised the market price expectation. But on the other hand, cement enterprises are also facing the pressure of soaring raw material prices on costs.


As an important raw material for cement production, the price trend of coal is directly related to the control of enterprise production cost. According to the calculation, 140-150 kg of coal is required for a ton of clinker, the coal price rises by 100 yuan, and the clinker cost rises by about 15 yuan. The sharp rise of coal price directly raises the production cost of cement enterprises and brings great cost pressure to cement enterprises.


How should the cement industry cope with the rising price tide?


Dual control of energy consumption refers to the "dual control" of the total amount and intensity of energy consumption. The implementation of dual control of energy consumption intensity and total amount is an important institutional arrangement to strengthen the construction of ecological civilization and promote high-quality development. It is an important starting point to promote the goal of carbon peak and carbon neutralization. At the same time, the outline of the 14th five year plan takes "reducing energy consumption per unit of GDP by 13.5%" as one of the main binding indicators of economic and social development. There are still some difficulties and challenges to achieve this goal. Therefore, in the future, dual control of energy consumption will be a "protracted war".


As one of the key industries of the "two highs", how should the cement industry deal with this continuous tense situation?, At present, I think we can at least do the following.


1、 Strive to keep the cement price within a reasonable price range.


2、 Actively fill vacancies and stabilize market supply.


3、 Call on local governments and associations to avoid "one size fits all" dual control of energy consumption.


4. Actively upgrade technology and deploy "protracted war"

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