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【 outlook 】 wei-ping ma: cement prices still have upside this year


As the second half of last year began to cement prices constantly add pounds, cement finally turn profit in the west and the annual loss of hk $309 million from 2015 to 2016 in 10.3 million.


In early march, the western cement has hair) announced in turn profit in 2016, and the results conference on March 14, the day before afternoon, cement and increase cement prices in western 20 yuan to 280 yuan per ton. To reverse the loss, Mr Zhang, chairman of the President of wei-ping ma cannot hide the joyful mood, all the wei-ping ma believes that cement prices still have upside this year.


It is reported that as of December 31, 2016, the western cement income rose 6.2% to 3.7193 billion yuan; In addition to the before interest, tax, depreciation amortization profit of 1.3117 billion yuan, and 2015 of 2015 yuan. Gross profit rose 46% to 676.7 million yuan.


2016 cement open hanging in the west and by turn profit significantly, shareholders should be reported a profit of RMB 10.3 million, while 2015 losses of hk $309.2 million.


Since the second half of 2016, domestic cement prices generally rise. To average 42.5 magnitude of bagged cement mainstream manufacturers ex-factory price, for example, in July when prices for 255 yuan per ton/tons, by the middle of December reached 365 yuan per ton, up more than forty percent. Cement prices make industry began to thaw.


Wei-ping ma points out that in 2016 the cement prices a v-shaped, moves downwards, during the first half of the year after picking up, until the fourth quarter of the price back to normal. He stressed that in the past two years, the domestic real estate market downturn, but so is, quantity and price this year, real estate will construction will rise sharply, and increasing need of infrastructure projects, for the cement industry is a major positive.


As western cement in November 2015, acquired chakpori cement factory, its annual production capacity is 29.2 million tons of cement, it is understood that the western cement are not other building.


It is important to note that although western cement in cement and clinker sales of 17.8 million tons in 2016, more than 2015 tonnes in 17.1 million rose slightly. , however, that number includes purchase chakpori November 2015 sales of about 1 million tons of cement contributions, if the contribution of skim chakpori cement plant, the west is actually slightly lower cement sales.


In sales, jimin zhang pointed out that the stability of the shaanxi province sales, but in xi 'an region and to a reduction in all producers in the guanzhong area demand spontaneous peak production during the off-season, but sales of xinjiang and the guizhou province has increased slightly.


"The guanzhong due to all manufacturers to continue pricing competition, the market average price is tanking, but in the second half of last year, the market order has improved, supply cut to shaanxi, xinjiang, and the average price of pick up" in guizhou.


Western cement and conch cement "marriage" has always been the focus of the market, are 21% cement, conch cement to hold the west west cement cfo Chen Jingxiu said that anhui conch to purchase cement one year period of calm in the west and almost end of June this year, in addition to the two companies also have business cooperation.



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