Most cement stocks in the Hong Kong market are trading lower.
As of this report's publication, West China Cement (02233) shares have dropped 12.7% to HK$1.65. CNBM (03323) shares are down 4.48% to HK$4.90. CONCH CEMENT (00914) shares have fallen 1.53% to HK$17.98. HX BLDG MAT (06655) shares have decreased 0.44% to HK$13.43.
This movement follows a research report from Goldman Sachs on commodity markets, which made minor adjustments to its price forecasts for building materials in mainland China. The report included downward revisions to profit estimates for sectors such as cement.
Goldman Sachs noted that the cement sector experienced soft pricing in the second quarter due to weak construction demand. However, the firm anticipates that demand will stabilize in the second half of the year as the central government increases support for infrastructure financing.
China Galaxy Securities previously pointed out that demand for cement has been insufficient in May, partly due to the early arrival of high temperatures and rainy weather. The national shutdown rate for clinker production lines was slightly lower than in April, leading to a release of supply pressure and a small increase in inventory levels. While some regions attempted to raise prices, the actual implementation of these increases fell short of expectations, resulting in a continued weakening of cement prices throughout May.
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