China Galaxy Securities: Cement Prices Likely to Stay Weak at Low Levels in July

China Galaxy Securities said cement demand in June was seasonally weak due to factors including high temperatures and the plum-rain season, according to Jiemian News. The brokerage noted regional differences in clinker kiln shutdowns, and said companies accelerated capacity controls as the off-season began, pushing clinker inventory capacity utilization lower. Driven by cost pressures, producers in various regions attempted to raise cement prices in June, lifting the national average cement price slightly from the previous month. Looking ahead, China Galaxy Securities expects July’s off-season demand to provide insufficient support for prices, with the marginal impact of staggered production controls weakening and cost-side support easing, leaving cement prices running weak at low levels in July.