Ningxia is much lower than other provinces in the northwest, so how is Ningxia, the northwest "depression", formed?
When China Cement Network investigated the cement market, it was found that Ningxia was much lower than that of other provinces in the northwest, with a difference of 300 yuan and a price difference of 20 yuan. So how did Ningxia, the northwest "** depression", come into being? 
Ningxia is located in the northwest corner of China, the whole area is dominated by plains, backed by Helan Mountain, the Yellow River runs through the place from southwest to northeast, and the cement clinker production line is also rolled out. According to the data of China's top 100 cement clinker production capacity, the cement clinker production capacity of Ningxia Hui Autonomous Region in 2023 will be 224440,000 tons.
However, there is a lot of overcapacity in Ningxia. Ningxia has a small geographical area, a small population, and limited market demand, and the contradiction between supply and demand is very prominent in this place. Li Yongjin, president of the Ningxia Cement Association, once said: "Ningxia's overcapacity is very serious. A large local cement company said: "The overcapacity is at least more than 60%, and the cement enterprises with a production capacity of 2 million tons per year have an actual shipment volume of only 800,000 tons per year." In this way, high storage has become a common phenomenon of Ningxia cement enterprises for many years, so the local cement enterprises have formed a "tradition" for many years with small profits and quick sales. Foreign cement companies said that every year in Ningxia will have a large amount of cement clinker to the outside world, according to the person in charge of a cement enterprise in Jinwu, Gansu revealed: "Every year Ningxia will have 10 to 150,000 tons of cement clinker shipped to Jinwu." ”
It is understood that local cement is generally sold to Gansu, Inner Mongolia, Shaanxi and other places around Ningxia, and its annual sales account for 30%-40% of the total sales. Ningxia Building Materials previously revealed that more than half of the products are sold to markets outside Ningxia.
In recent years, the national cement market demand has been very cold, and the cement market around Ningxia has declined. A cement company in Ningxia said: "I can't make money at all, and there are basically not many people going to other places this year." ”
The road of export sales is not working, the market demand is declining, the market competition in Ningxia is becoming more and more fierce, and the cement ** has fallen from nearly 500 yuan tons all the way to about 300 yuan tons in the past two years. At the beginning of 2024, the pressure on cement manufacturers in Ningxia has doubled, according to its disclosure: "The ex-factory price of cement at the beginning of this year has decreased by 30%-40% compared with the same period last year," and some companies even lose money ** cement: "The current ex-factory price is only 180 yuan tons, far lower than the cost price." ”
Under the influence of many factors, Ningxia has become the "best depression" in the northwest.
For the market in the later part of 2024, Ningxia cement companies are very confused, and in general, local cement manufacturers have formed a consensus that "the demand may be difficult to rise". Some companies said that Ningxia has a trend of fighting a first-class war, and fighting a first-class war and seizing market share seems to be the only way out for Ningxia cement enterprises. However, some companies said that they would not fight the first war unless they had to, and the person in charge of the company bluntly said: "Fighting the first war and seizing the market is also the company's order to survive."
Where will the Ningxia cement market go in the future? How to resolve overcapacity, so that the total capacity of the cement industry in the region is compatible with the environmental carrying capacity, market demand and resource guarantee, the spatial layout is coordinated with the regional economic development, and the capacity utilization rate reaches a reasonable level? This should be a must-answer question that every cement company can't avoid!