As the demand increases, prices rise
Into the second half of the traditional peak season for cement sales, as well as the amount of real estate starts to increase, the amount of cement prices is to continue forever? Can the performance of cement stocks continued strength?
China recently published data on the cement industry, showing that the industry continues to maintain high growth. In August the national monthly and annual cement production rose by 3.4% and 24%, following investment in fixed assets and real estate investment growth.
Relevant personnel, according to industry estimates, cement production this year will be more than 1.6 billion tons, according to an increase of 15.3% growth rate will be higher than the previous year by about 10 percentage points.
3 Zhisi Cheng total demand for cement is important impact of the real estate industry. August real estate investment and development in the Mainland and other data Juncheng chain growth, and analysts expected a whole new area will start to grow, becoming a major force in driving demand for cement.
"From the medium to long term, will show a rising trend in cement prices. First, the industry concentration continues to increase, enterprises increased bargaining power, low-cost disorderly competition reduced; Secondly, the state eliminated the backward production capacity increase in the cost of planning and environmental protection will be support prices of cement. "Yang Dongsen analyst at China Merchants Securities, said.
BNP Paribas analyst recently visited southern and central China study found that the sales of cement companies has reached 1.1-1.2 times the yield ratio, reflecting the stock is falling.
UBS strategy report released earlier holdings of the cement industry has proposed shares, preferred shares of China's building materials; UOB Kay Hian also proposed to buy Chinese building materials, cement and Sinoma shares of landscapes. (silica fume)