Cement stocks fluctuated higher. As of press release, Western Cement (02233) rose 8.91% to HK$1.1; Conch Cement (00914) rose 5.65% to HK$17.58; and Huaxin Cement (06655) rose 4.79% to HK$7.44.
The Zhitong Finance App learned that cement stocks fluctuated higher. As of press release, Western Cement (02233) rose 8.91% to HK$1.1; Conch Cement (00914) rose 5.65% to HK$17.58; Huaxin Cement (06655) rose 4.79% to HK$7.44; and China Building Materials (03323) rose 0.32% to HK$3.13.
According to news, recently, the Yangtze River Delta cement market reported that prices may rise by 30-50 yuan/ton. According to an analysis by Centennial Construction Network, the continuous decline in cement prices has caused some cement companies to cut and stop losses, and the willingness to stock up declined under a bearish mentality in the middle and lower reaches. In order to boost market confidence and return to healthy competition, manufacturers are more willing to raise prices. Also, according to information from the cement network, according to market feedback, enterprises in the Jiangsu, Zhejiang and Shanghai regions are strongly willing to raise prices, probably driven by the rise in clinker prices around Chaohu Lake. In order to increase profits, starting on the 10th, Hangzhou Jiahu Shao, Su Xichang, and some major manufacturers in Shanghai announced an increase of 30 yuan/ton for high-grade bulk cement.
In addition, infrastructure investment started strong. From January to February 2024, fixed asset investment (excluding rural households) increased 4.2% year on year; broad infrastructure investment increased 8.95% year on year; narrow infrastructure investment increased 6.3% year on year. According to Guoxin Securities, equipment updates will drive the release of technology reform orders, and cement projects with high energy consumption, high emissions, and mainly existing technical improvement projects are expected to benefit. Tianfeng Securities said earlier that cement is expected to benefit from subsequent improvements in infrastructure and real estate demand. In the medium to long term, the supply pattern is expected to continue to be optimized.