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

Securities Times Reporter Zhang Zhibo

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

This round of price adjustments was carried out in three stages. In late February, large-scale demand from construction terminals began to emerge, and raw material costs for construction increased. The first adjustment raised prices by 40 yuan per ton, solidifying the market price bottom. In early March, the second adjustment increased prices by 30 yuan per ton, continuing to reinforce the upward trend. On March 15, prices were raised again by 40 yuan per ton. The total increase across three rounds exceeded 100 yuan per 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 in cement market prices. Leading cement companies in East China, North China, and Northwest China are following the industry recovery pace, implementing price adjustment policies and raising ex-factory prices for various cement grades simultaneously.

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 per ton. The price increase for bulk cement in the Yangtze River Delta has been implemented, with mainstream brands in northern Zhejiang and southern Jiangsu raising prices by 20 yuan per ton for P.O42.5 bulk cement. Shanghai has also followed suit, with significant increases in outbound volume and inventory falling back to 31%, indicating ongoing improvement in supply and demand.

Pengyuan Credit Rating 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 forecasted that cement demand will show a moderate decline in total volume by 2026, with the decline narrowing.

According to Securities Times Data Treasure, as of March 16, since 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 of cement equipment manufacturing annually, 48,404 cubic meters of ready-mixed concrete per hour (including commissioned processing capacity), 820,000 tons of lime annually, and 700 million cement bags per year. Cement business revenue accounts for 57% of the company’s total revenue, remaining the dominant segment.

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. The company continues to promote “increasing revenue, reducing costs, controlling expenses, and improving efficiency,” focusing on refined operations and ongoing technological innovation.

Data Treasure reports that as of March 17, 16 listed cement companies have released their 2025 performance reports. Based on median estimates from annual reports, quick reports, or forecasts, seven companies are expected to be profitable in 2025. China National Building Material, Tapai Group, Jianfeng Group, and Jinyu Jidong each have net profits exceeding 100 million yuan, at 2.825 billion yuan, 634 million yuan, 460 million yuan, and 220 million yuan, respectively.

China National Building Material expects a net profit attributable to the parent 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 is projected to achieve revenue of 4.107 billion yuan in 2025, down 3.99% year-on-year; net profit attributable to the parent is expected to be 634 million yuan, up 17.87%.

Looking at net profit changes, Jianfeng Group, Wannianqing, and Sanhe Pile Group achieved doubling of net profits for the full year. Jianfeng Group’s growth was the highest at 325.97%. Sichuan Jinding and Jinyu Jidong are expected to turn losses into profits.