Cao Jianglin, general manager of China National Building Materials Group: the current cement price is not high, the price of 300 yuan / ton is still too low-Guangzhou Jiaheng Board Industry Co.,Ltd.

Guangzhou Jiaheng Board Industry Co.,Ltd.

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Cao Jianglin, general manager of China National Building Materials Group: the current cement price is not high, the price of 300 yuan / ton is still too low

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2022-06-27 20:15:25.024

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On April 11, 2018, "2018 China Cement Top 50 High-level Forum and China Cement Association Council Meeting" was held in Chengdu, Sichuan. Cao Jianglin, general manager of China National Building Materials Group, attended the meeting and expressed his views on the reasons for the increase in the performance of the cement industry last year and whether the current cement price is too high.

Cao Jianglin said that the profits of the domestic cement industry improved significantly last year, which contributed to the national pollution prevention and control, and paid more taxes and increased the income of employees. The industry should be proud of the achievements of the cement industry last year. The good performance of the cement industry mainly includes four aspects.

The first is the release of dividends from the supply-side structural reform; the second is the strong support of governments at all levels; the third is the coordination and organization of the China Cement Association; the fourth is the self-esteem, self-respect and diligence of cement practitioners. Cao Jianglin believes that the cement industry, without the support of government funds, actively promotes the structural reform of the supply side, which is more difficult than its coal and steel.

Cao Jianglin also expressed his opinion on whether the current cement price is too high. He believes that the current cement price is not high, and it can even be said that the current domestic cement price of about 300 yuan / ton is still too low. Taking southwest China as an example, including Yunnan, Guizhou, Sichuan, Chongqing and other places, the price of cement is generally around 300 yuan/ton, and Yunnan is slightly lower at around 280 yuan/ton. These prices are not high.

Price is a reflection of value, but current cement prices do not reflect real value.

Cao Jianglin also gave an example. At present, the three major cement markets in the world, Europe, the United States, and Africa, the price of cement has been around US$100 per ton of cement since the 1990s, and even reached US$200 in Africa when it was high. At this price, it reflects the value of cement.

In addition, from a historical point of view, the price of cement and steel in the 1990s, and now compared with the price of steel, are very different, and the price of cement has increased slightly or even decreased. In the 1990s, Hunan Cement sold to Hong Kong at about HK$700/ton, and Dongjiang Cement and Shaofeng Cement sold in Shenzhen were also at RMB 400-500/ton, both higher than the current cement price.

In addition, some data show that in the past three years, the gross profit margin of the world's largest cement companies has been between 39% and 50% without exception. In my country, the gross profit margin of Conch in the first quarter of this year was not bad, but most other companies are not able to meet such targets. Therefore, the current cement price is not high.

(Editor in charge: Yu Yaoyi)