In October, demand continues to recover, cement prices are rising. The main reasons for the price increase are driven by profit pressure and better implementation of off-peak production in the industry, leading to an improved supply and demand situation.

According to news from the china cement network market data center, feedback from the market indicates that in hunan, the impact of staggered kiln shutdowns has led to relatively low inventory, and companies have a strong willingness to raise prices. Companies plan to notify on the 15th for a price increase of 50 yuan/ton for cement in changzhutan, chenzhou, and other areas.

In shaanxi, due to the significant effects of previous normalized staggered production and price execution, coupled with this year's staggered production plan being advanced to execute from November 15, 2024, to March 15, 2025.

As it is the last peak demand period of the year, to improve overall profit levels, cement companies in the guanzhong and hanzhong areas of shaanxi previously notified a price increase; on the 14th, shangluo also notified a cement price increase of 30 yuan/ton.

Citic sec stated that as multiple departments have recently introduced a series of policies to promote a stabilizing real estate market, the stability of the real estate industry is also beneficial for the recovery of demand in the cement and glass industries. On the supply side of cement, the progress of incorporating cement into the national carbon trading market has accelerated, and the introduction of the new capacity replacement policy is expected to expedite the clearing of 0.3 billion tons of obsolete cement clinker capacity, with overproduction being effectively controlled, resulting in actual capacity being reduced from 2.1 billion tons to below the designed capacity of 1.8 billion tons.

Cement-related Hong Kong stocks include:

Conch Cement (00914), CR Building Material Technology (01313), Asia Cement (00743), West China Cement (02233), China National Building Material (03323), etc.