On October 12, the national cement price index closed at 379.89 points, up 0.68% month-on-month and up 18.49% year-on-year.

Although there is pre-winter rush construction in the northeast region after the holiday, some demand has weakened due to cooling and rainy weather, overall the cement prices are running stable; the southern Yangtze River Delta region, after substantial increases, is gradually being absorbed, but Guangdong, Guizhou, and other areas remain relatively weak.

Overall, after the previous significant increases, enterprises continue to advance, and the national cement market is stable with minor fluctuations.

Jefferies Financial published a report stating that the mainland's stimulus measures announced at the end of last month were surprising. The bank believes that this round of quantitative easing is sustainable and helps to reverse demand. Most commodities have good destocking situations before the peak season, and it is expected that demand in the fourth quarter will improve year-on-year, especially as the base in the fourth quarter is low, such as cement.

Jefferies Financial is most bullish on cement in the fourth quarter, as more convincing evidence is seen, indicating that supply constraints will lead to more sustainable price increases. The bank stated that under the stimulus plan, it is positive for all commodities in the fourth quarter, with a preference for cement, aluminum, copper, iron, and finally coal.

Lyon released a report stating that the Ministry of Finance has started to follow up with a stronger fiscal policy, expecting support for infrastructure growth next year. In addition, the bank believes that several rounds of price increases since June of this year have proven that the cement industry has moved out of a severe imbalance between supply and demand. The bank pointed out that cement companies have re-established cooperation to control production in order to promote a balance between supply and demand. Therefore, with the improvement in demand and coordinated improvement in supply, the cement industry should achieve better profitability next year.

Cement-related companies: CNBM (03323), Conch Cement (00914), Huaxin Cement (06655), CR Building Materials Technology (01313), etc.

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