In 2023, cement will continue, causing many cement plants to face the dilemma of bankruptcy. Since the beginning of this year, more than 60 cement companies have boarded the bankruptcy reorganization platform, including some former famous enterprises in the industry. The real estate market is sluggish, and infrastructure investment is not as expected, which has brought varying degrees of impact to the cement, sand and concrete industry chains. Market activity continues to be sluggish, at a low level, there are more and more areas with excess capacity, and there is a lot of negative information from downstream industries and related industries. Sand and gravel companies have lamented that the sand and gravel market is about to face the arrival of a "cold snap". According to previous reports, from the beginning of this year to September, 11 sand and gravel companies have declared bankruptcy or entered bankruptcy procedures. Among them, Dongju Sand and Gravel Import and Export Lianyungang Co., Ltd., Mishan City Mulinghe Sand and Gravel Distribution Station, Jiayin Longchang Sand and Gravel Distribution *** Taizhou Zhegang Sand and Gravel *** Fuzhou Hengsheng Sand and Gravel *** Fuzhou Henglu Sand and Gravel *** Chongqing Raymond Rock Sand and Gravel Products *** Guangxi Luyuan Building Materials Co., Ltd., Jixi City Jiguan District Sunsheng Village Sand and Gravel Factory, Heilongjiang Province Mudanjiang City Construction Sand and Gravel Factory and other sand and gravel enterprises have declared bankruptcy liquidation or entered bankruptcy proceedings.
In addition, affected by the real estate adjustment and cement overcapacity, the supply and demand of the cement market fell together. In the first three quarters of this year, the national cement output was 149.5 billion tons, down 432%, a new low in nearly 13 years. Due to the sharp decline in cement and demand, the performance of cement companies has declined seriously, and it is estimated that the loss of cement companies may exceed 50%. Judging from the third quarter financial reports of 19 listed companies in the cement industry, only two companies, Tower Group and Qingsong Jianhua, have achieved profit growth, while Jidong Cement, Shanshui Cement, Yatai Group, **Tianlu, Fujian Cement and other 5 companies have suffered losses, and the profits of the remaining 12 companies have declined year-on-year.
In addition, in the third quarter of this year, the accounts receivable of listed companies increased significantly, and more than 1,600 downstream construction companies also declared bankruptcy. These figures show that the entire sand and gravel industry is in a difficult state of operation. According to the latest data, in the first half of this year alone, the number of loss-making enterprises in the national sand and gravel industry reached nearly 3,000.
There are several reasons for the dilemma faced by the sand and gravel industry: First, the downturn in the real estate market has led to a decline in demand for sand and gravel. The regulation policy of the real estate market has led to a decrease in land ** and a decrease in the start of real estate projects, thereby reducing the demand for sand and gravel. Secondly, the sourcing of infrastructure investment has also affected the sand and gravel market. Since the beginning of this year, the growth rate of infrastructure investment has slowed down, especially the construction of some large-scale infrastructure projects. In addition, environmental pressure has also had an impact on the sand and gravel industry. In order to protect the ecological environment, some places have restricted sand and gravel mining, resulting in an increase in the production cost of the sand and gravel industry.
For sand and gravel enterprises, the current situation is very grim. Due to the imbalance between supply and demand, sand and gravel continue to be used, and the profit margins of many sand and gravel companies are compressed. In addition, due to the rupture of the investment and capital chain, many sand and gravel enterprises could not continue to operate and had to choose bankruptcy or stop production. For those companies that are still in business, there is also a huge pressure to increase competitiveness by reducing costs and improving product quality.
In short, the current sand and gravel industry is facing severe challenges, and the wave of bankruptcies is spreading. Sand and gravel enterprises need to improve their competitiveness, adapt to market changes, and find new development opportunities. At the same time, support measures should also be introduced to help sand and gravel enterprises tide over the difficulties and promote the healthy development of the sand and gravel industry.