Core Viewpoint - The Ningxia Autonomous Region's government has mandated a staggered production schedule for the cement industry from 2025 to 2026, requiring a total of 216 days of kiln shutdown to reduce air pollution during the heating season and to promote industry health [1][4]. Group 1: Staggered Production Requirements - All cement clinker production lines in the region are required to implement staggered production as per the directives from the State Council and relevant ministries [4]. - The staggered shutdown will last for 136 days during the winter heating season from November 15, 2025, to March 31, 2026, and 80 days during the summer and autumn non-heating season [4][5]. Group 2: Implementation and Compliance - All cement production lines must simultaneously start and stop production, with strict adherence to the mandated shutdown days [5]. - Companies producing calcium carbide slag cement must implement measures such as increasing storage or maintenance to comply with the staggered shutdown requirements [5]. Group 3: Incentives for Compliance - Companies that achieve energy-saving and carbon reduction standards may receive an extension of up to 8 days for kiln operation based on specific criteria [6][7]. - The extension days cannot be combined and can be transferred to other companies [7]. Group 4: Management and Oversight - Local industrial and environmental departments are tasked with ensuring compliance and may conduct inspections to enforce the staggered production schedule [8][9]. - The Ningxia Cement Industry Association will monitor market conditions and provide recommendations for staggered production, while also encouraging self-regulation among companies [9].

Core Viewpoint - The research focuses on identifying investment opportunities in the cement industry through various perspectives, including anti-involution, overseas cement markets, and regional analyses in Xinjiang and Tibet [1][2]. Group 1: Research Reports - The report highlights the geographical advantages of Xinjiang, where cement prices are more stable than the national average, supported by the construction of the China-Kyrgyzstan-Uzbekistan railway, which is expected to boost local cement demand [5][7]. - The cement production in Xinjiang for the first half of 2025 is projected to reach 19.46 million tons, a year-on-year increase of 5.4%, outperforming the national growth rate by 9.7 percentage points [7]. - The China-Kyrgyzstan-Uzbekistan railway is anticipated to generate a cement demand of approximately 400,000 to 600,000 tons, with the total demand from both segments of the railway estimated at 454,000 to 640,000 tons [8][9]. Group 2: Anti-Involution Strategies - The cement industry is adopting anti-involution strategies, focusing on limiting overproduction and improving price stability through differentiated peak-shifting measures [11][12]. - The industry is expected to see an increase in average capacity utilization from 50% to 70% if the anti-involution policies are fully implemented, enhancing the effectiveness of peak-shifting strategies [12]. - Major infrastructure projects, such as the "Yaxia" hydropower station in Tibet, are expected to stimulate demand recovery and improve profitability in the cement sector [12]. Group 3: Overseas Cement Market - The period from 2021 to 2024 is identified as a rapid expansion phase for Chinese cement companies overseas, with a significant increase in overseas production capacity [14][16]. - The profitability of overseas cement operations is expected to diverge post-2025, influenced by companies' operational capabilities and market positioning [14][17]. - The management of foreign currency exposure is crucial for translating nominal profits into actual earnings, especially in volatile markets [17]. Group 4: Regional Insights on Tibet - Despite a national decline in cement demand, Tibet's cement market is experiencing growth driven by major infrastructure projects and a stable supply structure [23][24]. - The region's cement production in 2023 reached 1.198 million tons, a 51% increase year-on-year, significantly outpacing the national average [26]. - The concentration of cement production in Tibet, with a high market share among a few companies, supports price stability and profitability [25][27]. Group 5: Future Outlook - The cement industry is transitioning towards a normalized and differentiated peak-shifting era, which is expected to improve capacity utilization and profitability [29][30]. - The anticipated recovery in demand and the implementation of peak-shifting strategies are expected to stabilize prices and enhance the overall profitability of the cement sector [32].