The cement industry ran smoothly in 2020, and the expected annual profit may reach 165 billion yuan

Byzengjiaming12

Updated Thu, 07 Jan 2021 13:49:36 GMT

  The National Bureau of Statistics released a set of profit data of industrial enterprise on December 27th. As of November, the industrial enterprises above designated size had realized profits of 5744.5 billion yuan, with a year-on-year increase of 2.4%.   At the beginning of this year, our national economy was hit by the sudden outbreak of COVID-19 epidemic. In the first half of the year, our GDP fell 1.6% year-on-year, and it turned from negative to positive with a year-on-year growth of 0.7% in the first three quarters. The economy was poised for recovery. Wei Yu, a researcher at the Cement Big Data Research Institute(CBDRI), believed that despite the impact of the epidemic, many regions of the South were plagued by the extremely long rainy season in Q2, while the cement industry still ran smoothly.   In the first quarter of this year, cement output fell by 23.63% year-on-year due to the impact of the epidemic, and the output rebounded sharply in Q2 and Q3. In the first three quarters, the national cement industry achieved operating income of 694.3 billion yuan, with a year-on-year decrease of 3.5%. The total profit was 129 billion yuan, dropped by 1.7% year-on-year, which was the second highest in history, second only to 2019.   From January to October, the overall production of the building materials industry was basically stable and the efficiency continued to improve. According to the data released by the Department of Raw Materials Industry, in October, 32 types of building materials products under key monitoring and the output of 29 products achieved year-on-year growth. Among them, the output of cement was 240 million tons, with a year-on-year increase of 9.6%. The output of 20 of the 32 types of building materials under key monitoring increased year-on-year from January to October, three types more than that from January to September. Among them, the output of cement was 1.92 billion tons with an increase of 0.4% year-on-year, achieving positive growth for the first time in this year.   In terms of revenue and profit, the operating income of building materials industry enterprises was 4.4 trillion yuan, fell by 0.9% year-on-year, and the fall narrowed by 0.9 percentage points over that in the first nine months. The total profit was 374.5 billion yuan, increased by 1.2% year-on-year, which was the first positive growth in this year. However, the operating income of the cement industry from January to October was 795.2 billion yuan, dropped by 2.7% year-on-year, and the profit was 148.3 billion yuan, dropped by 1.6% year-on-year.   According to the data from the CBDRI, the national fixed asset investment increased by 0.8% year-on-year in the first three quarters, of which infrastructure investment (excluding production and supply industries of electric power, heating power, gas and water) increased by 0.2% year-on-year, and the national real estate development investment increased by 5.6% year-on-year.   Wei Yu said that due to the relatively rapid recovery of our national economy, the infrastructure investment stimulated by the special bonds and the huge stock of the real estate projects have provided supports for the recovery of cement demand in Q2 and Q3. After experiencing the brunt of destocking and newly added supply in some regions, the overall operation of the cement industry ran smoothly, but market prices have declined slightly at high levels.   According to the forecast of the CBDRI, the annual profit of the cement industry in 2020 is expected to exceed 165 billion yuan.