Post-holiday South China and South China price drop

After the holiday, cement prices began to fall. Prices in East China and South China fell by about RMB 20-40/ton. Since the first quarter was the off-season, the price fell in line with expectations, but slightly earlier than expected, market demand has not yet started, resulting in the industry this week. Underperformed the market by 4.86%. Since the current round of price decline is driven by large companies, the market is generally concerned that price synergy will be under greater pressure. The main reason is weak market demand, high stocks of enterprises need to be destocked ahead of schedule, and future price maintenance still depends on collaboration. At present, the inventory in each region is relatively high. North China and East China are about 50%-60% in about 80% of Central China. In addition to Shandong, the rest of the east China market is expected to end in late February. In the first quarter of the year, the market is still in a downward phase, and the fundamentals have not yet bottomed out. However, with the continued increase in industrial capital, the industry already has left-side investment opportunities. In 11 years, the industry PE is only 9 times, and most of the demand has been included in the stock price. Performance pessimistic expectations.