Cement stocks fell collectively. As of press release, Dongwu Cement (00695) fell 4.3% to HK$1.78; China Building Materials (03323) fell 3.66% to HK$3.42; and China Resources Building Materials Technology (01313) fell 1.3% to HK$1.52.
The Zhitong Finance App learned that cement stocks fell collectively. As of press release, Dongwu Cement (00695) fell 4.3% to HK$1.78; China Building Materials (03323) fell 3.66% to HK$3.42; and China Resources Building Materials Technology (01313) fell 1.3% to HK$1.52.
According to the news, according to the cement network, although the second quarter has always been the usual period for peak demand in the cement market, this year's actual demand did not show the strong trend expected. In order to effectively cope with the oversupply pressure brought about by weak market demand, the cement industry in many provinces has taken the initiative to prolong peak production. Among them, Jilin Province increased Cuofeng production by 30 days from April to May, and Heilongjiang increased production by 30 days from April to May.
The Lyon Research Report pointed out that some provinces are replacing cement production capacity, and have also been controlling additional production capacity in the past few years, but considering that the property market is still weak, the actual total cement production capacity is expected to remain relatively high. Therefore, it is believed that the situation of oversupply of cement may continue this year, and it is predicted that domestic cement prices will remain low. The target price for building materials in China was reduced from HK$5.4 to HK$4, while the target prices for cement were reduced from HK$3.1 and HK$23 to HK$1.7 and HK$22, respectively.