The Average Price of Cement Across China Last Week Fell 0.83 Percent

The average price of cement across China last week fell 0.83 percent week-on-week to 336.25 yuan per ton, reports Shanghai Securities News. According to the report, the price of cement has been falling for several weeks since the end of April. Price adjustments of 10-50 yuan per ton mainly occurred in Beijing, Hebei and Anhui. Industry experts expect the cement sector to have recorded a 60 percent year-on-year fall in first quarter earnings, and are not optimistic about second quarter profits. According to industry portal Digital Cement, the price of cement in Beijing and Hebei continued to fall last week by 20-50 yuan per ton, and the price in Beijing has dropped 120 yuan per ton since the beginning of May. It was reported that a majority of cement makers in Hebei province will halt production in June as a result of full inventory. Due to increases in new capacity and price drops in nearby regions, Shanghai and Hefei posted small drops in cement prices last week. An industry analyst pointed out that fundamentals will remain weak in the short-run as the industry enters into the low season in the second half of June. Anhui Conch Cement (600585), the most profitable cement maker, posted a 50 percent year-on-year drop in net profit in the first half of 2012. Hong Liang, an analyst at Galaxy Securities, said there is no significant recovery in cement demand in the Yangtze River region. Although large cement makers in Anhui province have operation ratios of more than 90 percent, cement producers in Zhejiang and Jiangsu have relatively lower ratios. Source: uaecement