Cement Market Shows Signs of Recovery, Multiple Regions Enter Price Increase Mode

Financial Times Reporter Zhang Zhibo

According to Cement People Network, since the Spring Festival in the Year of the Horse, the cement market in Northeast China has been the first to recover. Steady price increases through tiered adjustments have gradually raised cement prices. As of March 15, some areas in Northeast China have completed three consecutive rounds of price adjustments, with a total increase of 100 yuan per ton.

This round of price adjustments was carried out in three phases. In late February, demand from large construction projects began to pick up, and raw material costs for construction increased. The first adjustment raised prices by 40 yuan per ton, solidifying the market price floor. In early March, the second adjustment increased prices by 30 yuan per ton, continuing to reinforce the upward trend. On March 15, a further increase of 40 yuan per ton was implemented. The total increase across three rounds exceeded 100 yuan per ton, covering Heilongjiang, Jilin, Liaoning, and parts of Inner Mongolia.

The price increase effect in Northeast China continues to spread, gradually forming a nationwide pattern of rising cement prices. Leading cement companies in East China, North China, and Northwest China are closely following the industry recovery, implementing price adjustment policies and simultaneously raising ex-factory prices for various cement grades.

According to data from Century Construction Network, since mid-March, cement companies in Anhui, Jiangsu, Zhejiang, and other regions have issued frequent price adjustment notices, with prices generally rising by 20 to 40 yuan per ton. The bulk cement prices in the Yangtze River Delta have begun to increase, with mainstream brands in northern Zhejiang and southern Jiangsu raising prices by 20 yuan per ton for P.O42.5 bulk cement. Shanghai has followed suit, with significant increases in outbound shipments and inventory falling to 31%, indicating ongoing improvement in supply and demand.

Pengyuan Credit Ratings states that as the first year of the “14th Five-Year Plan,” major infrastructure projects are accelerating, funding support is increasing, and urban renewal and old city reconstruction projects are ongoing. These factors are expected to provide core support for cement demand. Policies such as “dual carbon” and “dual control” will continue to optimize industry supply. It is forecasted that by 2026, cement demand will show a moderate overall decline, with the decrease narrowing.

According to Securities Times Data Treasure, as of March 16, 2026, three cement stocks have seen increased financing. The net buy-in amounts for China National Building Material, Shifeng Cement, and Tapai Group are 49.38 million yuan, 40.78 million yuan, and 13.95 million yuan, respectively.

As of June 2025, China National Building Material has an annual cement capacity of 126 million tons (grinding capacity, including joint ventures), 50,000 tons of cement equipment manufacturing, 48,404 cubic meters/hour of ready-mixed concrete (including entrusted processing capacity), 820,000 tons of lime, and 700 million cement bags annually. Cement business revenue accounts for 57% of the company’s total revenue, remaining the dominant segment.

Shifeng Cement produced 11.0862 million tons of clinker and 11.1708 million tons of cement in the first three quarters of 2025; total cement and clinker sales reached 14.15 million tons, down 6.21% year-on-year; gross profit per ton of cement is approximately 55 yuan. The company’s cost competitiveness and gross profit margin remain industry-leading. This year, the company continues to focus on “increasing revenue, reducing costs, controlling expenses, and improving efficiency,” emphasizing refined operations and ongoing technological innovation.

Data Treasure reports that as of March 17, 2026, 16 listed cement companies have released performance reports for 2025. Based on median values from annual reports, quick reports, or forecasts, seven companies are projected to be profitable in 2025. China National Building Material, Tapai Group, Jinfeng Group, and Jinyu Jidong each achieved net profits exceeding 100 million yuan, at 2.825 billion yuan, 634 million yuan, 460 million yuan, and 220 million yuan, respectively.

China National Building Material expects a net profit attributable to shareholders of 2.7 to 2.95 billion yuan in 2025, an increase of 11.6% to 21.9% year-on-year. The growth is mainly driven by the continued expansion of the company’s overseas business, which makes a significant contribution; domestic operations benefit from lower fuel costs and various cost reduction and efficiency measures, leading to a recovery in unit profitability of main products.

Tapai Group expects revenue of 4.107 billion yuan in 2025, down 3.99% year-on-year; net profit attributable to shareholders is expected to be 634 million yuan, up 17.87%.

Looking at net profit changes, Jingfeng Group, Wannianqing, and Sanhe Pile Group achieved double-digit growth in net profits for the full year. Jingfeng Group’s net profit increased by up to 325.97%. Sichuan Jinding and Jinyu Jidong are also expected to turn losses into profits.

(Edited by: Wen Jing)