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Suzhou TECON Construction Technology Co., Ltd
Suzhou TECON Construction Technology Co., Ltd

Cement, concrete and other building materials prices keep rising! Raw materials are in short supply!

Recently, the price of cement, steel, concrete and other building materials has increased due to multiple factors such as control of energy consumption, rising coal prices and power supply constraints.

The coal

The prices of national coal rose steadily in early October, according to data released by China's National Bureau of Statistics on October 14.

The data show that the national coking coal price is stable in early October; Thermal coal price increases continue to reduce, but still more obvious; Anthracite price increases shows another expansion. In addition, at the same period, the national coke (secondary metallurgical coke) price of 4086 yuan/ton keeps the same as the last period.

Many factors are contributing to the rising coal price, among which two are the most important.

First, the energy demand keeps increasing, and more products rely on electricity, such as new energy vehicles. 

Second, the energy supply has become shorter. Recently, natural disasters such as floods occurred in many areas of Shanxi Province in China, and international shipping has problems frequently. Ports in some countries are jammed, and shipping is not smooth, leading to persistent problems in the coal supply chain.

Due to the onset of the Northern hemisphere winter,  there are more coal requirements because of the growth in power capacity. The surge in coal demand is expected to continue at least through this winter's peak, as electricity and coal use reach their highest levels of the year. 

The cement

According to the China Cement Network market centre news, before October, the northeast Provinces of Changchun, Harbin, Shenyang and other significant cities leading enterprises P.O42.5 bulk quoted price has been increased to about 600-650 yuan/ton.

The concrete

As of October 14, according to the shipment statistics of Chinese concrete shuttering companies, from October 7 to October 13, more than 500 Chinese concrete companies saw a slight decline in shipments, and the average capacity utilization rate of concrete was 19.35%, 0.01% lower from the last period (September 22 to September 29), missed the expected. The figure was 8.41% weaker compared with the same period from last year.