The Zhitong Finance App learned that cement stocks continued to decline. As of press release, Dongwu Cement (00695) fell 3.83% to HK$1.76; China Resources Building Materials Technology (01313) fell 3.27% to HK$1.48; and China Building Materials (03323) fell 2.08% to HK$3.3.

According to the news, cement prices have been raised one after another in many places recently. However, industry insiders believe that there are three key factors supporting this round of price increases. First, cement factories in many places stopped production at the wrong peak in the second quarter; second, competition was intense, with ultra-low price cement in some markets, and the factory price fell below 200 yuan/ton; third, the new standard for ordinary silicate cement will be officially implemented on June 1. At that time, cement production costs may increase, and cement plants in some regions are planning price increases in advance.

Debon Securities believes that cement prices have risen across the country. Although some parts of the north have risen and then declined, the overall price increase is still reducing losses, driving up the country's average cement price. On the supply side, kilns have been shut down intermittently in the northern region. The proportion of kiln shutdowns across the country is still higher than in the same period in previous years, and stocks have been digested; on the demand side, demand is relatively weak. There is intermittent rain in parts of the south, and price increases in the north also suppress demand. Lyon's previous research report pointed out that 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.