Cement stocks declined collectively. As of press release, China Resources Building Materials Technology (01313) fell 5.15% to HK$1.29; Shanshui Cement (00691) fell 3.7% to HK$0.52; Huaxin Cement (06655) fell 3.3% to HK$6.45; and China Building Materials (03323) fell 2.05% to HK$2.87.
The Zhitong Finance App learned that cement stocks fell collectively. As of press release, China Resources Building Materials Technology (01313) fell 5.15% to HK$1.29; Shanshui Cement (00691) fell 3.7% to HK$0.52; Huaxin Cement (06655) fell 3.3% to HK$6.45; and China Building Materials (03323) fell 2.05% to HK$2.87.
Huachuang Securities pointed out that cement prices fell month-on-month this week. Currently, the national average price is 364.84 yuan/ton, or -0.88% month-on-month. On the eve of the Spring Festival during the week, market demand basically ended. On the supply side, most cement production was suspended during the Spring Festival. The average operating load of cement mills nationwide was 0.99%, down 14.40 percentage points from last week, and an increase of 6.78 percentage points. Overall, it has remained at its current peak; in terms of demand, demand for cement has basically ended due to widespread snowfall, and demand has recovered less from after the holiday to before the Lantern Festival. Demand for cement is expected to slowly recover after the Spring Festival, prices will generally stabilize, and some regions may decline.
Galaxy Securities previously pointed out that demand for cement will weaken in the short term. It is expected that after the temperature warms up in February, downstream construction is expected to usher in a peak season, and demand for cement is expected to increase; in the long run, the industry is overcapacity and false peak production is the norm. Infrastructure is expected to maintain high growth this year, real estate starts are expected to pick up, and demand for cement will improve.