In the first half of the year, the cement market in Guanzhong, centered on Xi'an, Shaanxi, was affected by multiple negative factors such as tight funds and increased production capacity. The contradiction between supply and demand in the industry is very prominent, and cement prices continue to decline.

  Data shows that at the end of July, the local price of P.O42.5 bulk cement dropped by 80 yuan/ton compared with the beginning of January, a decline of about 25%. In July, major cement enterprises in Guanzhong were already planning to raise cement prices, but the off-season demand was insufficient to support the price increase, and prices are still hovering at the bottom.

  However, since mid-July, continuous high temperatures have caused peak power loads in Xi'an, Shaanxi, and other places. To ensure the normal operation of the main power supply network, Xi'an has begun to implement staggered power consumption for industry, residents, and agriculture. Affected by this, the clinker line of the local major cement enterprise Lantian Yaobai has stopped kilns, and the mill operation rate has also dropped to about 40%, greatly affecting production and sales. In addition to Xi'an, other Guanzhong areas such as Baoji have also reported that partial power restrictions will be implemented in August. At that time, some cement enterprises will temporarily stop kilns and mills, and the market supply-demand pressure will be alleviated.

  Zhuochuang Information predicts that this round of power restrictions and production cuts may effectively alleviate the supply-demand contradiction and support a market rebound.