Cement Market Shows Signs of Recovery, Multiple Regions Enter Price Increase Mode

Securities Times Reporter Zhang Zhibo

According to Cement People Network, since the Year of the Horse Spring Festival, the cement market in Northeast China has been the first to recover. Through stepwise price adjustments, cement prices have steadily increased. As of March 15, some areas in Northeast China have completed three consecutive rounds of price adjustments, with a total increase of 100 yuan/ton.

This round of price adjustments was carried out in three stages. In late February, large-scale construction demand began to emerge, and raw material costs rose, leading to an initial increase of 40 yuan/ton, solidifying the market price bottom. In early March, the second increase of 30 yuan/ton was implemented to continue strengthening the upward trend. On March 15, a further increase of 40 yuan/ton was announced. The total increase across three rounds exceeded 100 yuan/ton, covering Heilongjiang, Jilin, Liaoning, and parts of Inner Mongolia.

The price increase effect in Northeast China continues to spread, gradually forming a nationwide linkage of cement prices. Leading cement companies in East China, North China, and Northwest China are following the industry recovery pace, releasing price adjustment policies and simultaneously raising ex-factory prices for various cement grades.

According to data from Century Construction Network, since mid-March, cement companies in Anhui, Jiangsu, Zhejiang, and other regions have issued frequent price adjustment notices, with prices generally rising by 20 to 40 yuan/ton. The bulk cement prices in the Yangtze River Delta have stabilized, with mainstream brands in northern Zhejiang and southern Jiangsu increasing prices by 20 yuan/ton for P.O42.5 bulk cement. Shanghai has also followed suit, with significant increases in outbound volume and inventory dropping to 31%, indicating ongoing improvement in supply and demand.

Pengyuan Credit Ratings states that as the first year of the “14th Five-Year Plan,” major infrastructure projects are accelerating, funding support is increasing, and urban renewal and old city reconstruction projects are ongoing. These are expected to provide core support for cement demand. Policies such as “dual carbon” and “dual control” will continue to optimize industry supply. It is projected that cement demand will gradually decline in total volume by 2026, with the decline narrowing.

According to Securities Times Data Treasure, as of March 16, 2026, three cement stocks have seen increased financing. The net buy-in amounts for China National Building Material, Shangfeng Cement, and Tapai Group were 49.38 million yuan, 40.78 million yuan, and 13.95 million yuan, respectively.

As of June 2025, China National Building Material has an overall capacity of 126 million tons of cement per year (grinding capacity, including joint ventures), 50,000 tons/year of cement equipment manufacturing, 48,404 cubic meters/hour of ready-mixed concrete (including entrusted processing capacity), 820,000 tons/year of lime, and 700 million cement bags annually. Cement business revenue accounts for 57% of the company’s total revenue, maintaining a dominant position.

Shangfeng Cement produced 11.0862 million tons of clinker and 11.1708 million tons of cement in the first three quarters of 2025; total cement and clinker sales reached 14.15 million tons, down 6.21% year-on-year; gross profit per ton of cement is about 55 yuan. The company’s cost competitiveness and gross profit margin remain industry-leading. This year, the company continues to promote “increasing revenue, reducing costs, controlling expenses, and improving efficiency,” focusing on refined operations and technological innovation.

Data Treasure statistics show that by March 17, 16 listed cement companies had released performance reports for 2025. Based on annual reports, quick reports, or forecast medians, seven companies are expected to be profitable in 2025. China National Building Material, Tapai Group, Jianfeng Group, and Jinyu Jidong each achieved net profits exceeding 100 million yuan, at 2.825 billion, 634 million, 460 million, and 220 million yuan, respectively.

China National Building Material expects a net profit attributable to shareholders of 2.7 to 2.95 billion yuan in 2025, an increase of 11.6% to 21.9% year-on-year. The growth is mainly due to the continuous expansion of overseas business, which significantly contributes to performance; domestic operations benefit from lower fuel costs and various cost reduction and efficiency measures, leading to a recovery in unit profitability of main products.

Tapai Group achieved revenue of 4.107 billion yuan in 2025, down 3.99% year-on-year; net profit attributable to shareholders was 634 million yuan, up 17.87%.

Looking at net profit changes, Jianfeng Group, Wannianqing, and Sanhe Pile Group saw their annual net profits double. Jianfeng Group’s growth was the highest at 325.97%. Sichuan Jinding and Jinyu Jidong are also expected to turn losses into profits.

(Edited by: Wang Zhiqiang HF013)