Hong Kong Stock Concept Tracking | Many provincial cement price increases, agencies are optimistic that cement performance will continue to improve (with concept stocks)

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

Although the Northeast region is rushing to work before winter after the holiday season, there are also parts where demand weakens due to cooling, rainfall, and snow. Overall, cement prices are running smoothly; in the southern Yangtze River Delta region, after a sharp rise, the market is gradually being digested, but places such as Guangdong and Guizhou are still weak.

Overall, after a sharp rise in the early stages, enterprises continued to advance, and the national cement market showed significant stability and slight movements.

Jefferies released a report saying that the stimulus measures announced by the mainland at the end of last month were surprising. The bank believes this round of quantitative easing is sustainable and will help reverse demand. Most products had a good inventory removal situation before the peak season, and demand in the fourth quarter is expected to improve year by year because of the lower base in the fourth quarter, such as cement.

Jefferies is most optimistic about cement in the fourth season, as it sees more compelling evidence that supply restrictions will lead to more sustainable price increases. The bank said that under the stimulus plan, all products were positive in the fourth quarter. The preferences were cement, aluminum, copper, iron, and finally coal.

Lyon issued a report saying that the Ministry of Finance has begun to follow up on a stronger fiscal policy, and it is expected that infrastructure growth will be supported next year. Furthermore, the bank believes that the rounds of price increases that began in June this year prove that the cement industry has come out of a stage where there is a serious imbalance between supply and demand. According to the bank, cement companies have once again reached a consensus on collaborative production control to promote a balance between supply and demand. Therefore, with improved demand and improved supply coordination, the cement industry should be able to achieve better profit performance next year.

Cement-related companies:

Conch Cement (00914), China Resources Building Materials Technology (01313), Asia Cement (00743), Western Cement (02233), China Building Materials (03323), etc.