Zheng Quan Shi Bao·2025-10-26 17:41Core Viewpoint - The construction materials industry in China is facing significant challenges due to declining prices and increased losses, prompting the government to implement a growth stabilization plan aimed at enhancing profitability and promoting green and digital development by 2026 [1][2]. Industry Overview - The construction materials sector is crucial for national economic growth, but recent years have seen a downturn in prices for key products like cement and glass, leading to an expanded loss margin and structural market issues [1]. - The Ministry of Industry and Information Technology, along with five other departments, has issued a plan targeting a significant increase in the profitability of the construction materials industry over the next two years, with a goal of exceeding 300 billion yuan in revenue from green building materials by 2026 [1]. Market Conditions - In 2024, the total profit for the domestic cement industry is projected to be 26.6 billion yuan, a decline of approximately 90% compared to the historical peak of 186.7 billion yuan in 2019 [1]. - Cement production from January to September 2025 was only 1.259 billion tons, reflecting a year-on-year decrease of 5.2% due to reduced demand from real estate and infrastructure investments [1]. Price Trends - The price of cement has been on a downward trend since 2025, with the price of P.O 42.5 bulk cement hitting a yearly low of 267.11 yuan per ton in mid-August [2]. - The glass industry has also experienced a decline in prices, with the price of float glass reaching a historical low in September 2024, followed by a slight rebound before falling again in 2025 [2]. Capacity Control Measures - The cement industry is actively responding to market challenges by implementing strict capacity controls, with a significant increase in kiln shutdown days and the elimination of inefficient production lines [2][3]. - As of September 2025, the company has shut down 16 production lines, accounting for over 22% of the total capacity eliminated in the industry [2]. Diversification and Innovation - Companies are diversifying their operations by expanding into new markets and industries, such as aluminum and eco-friendly home products, to mitigate reliance on traditional construction materials [5][6]. - The cement industry is also exploring horizontal and vertical expansions into related sectors, leveraging synergies to enhance competitive advantages [6]. Green and Low-Carbon Development - The industry is increasingly focusing on green and low-carbon production methods, with many companies adopting natural gas as a fuel source, which is expected to improve product quality [8]. - The implementation of carbon capture technologies and digital management systems is helping to significantly reduce energy consumption and carbon emissions in cement production [8]. Policy Support - The government is providing support through subsidies, tax reductions, and green finance initiatives to encourage construction material companies to expand their green production capabilities and phase out outdated capacities [9].