Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1] Core Views - Short-term easing of US-China trade tensions and anticipation of economic work conference guidance [1] - Mid-term expectations for improved profitability in the fiberglass sector [2] - The construction materials sector has shown a 1.60% increase in the past week, underperforming compared to the broader market indices [4] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 348.2 RMB/ton, up 1.3 RMB/ton from last week but down 63.0 RMB/ton year-on-year. The average cement inventory ratio is 67.9%, up 0.6 percentage points from last week [11][12][18]. - **Glass**: The average price for float glass is 1243.7 RMB/ton, down 57.3 RMB/ton from last week and down 9.3% year-on-year. Inventory levels have increased, indicating weak demand [44][50]. - **Fiberglass**: The market for non-alkali fiberglass remains stable, with prices holding steady. The average price for 2400tex non-alkali winding direct yarn is between 3250-3700 RMB/ton [5]. 2. Industry Dynamics Tracking - **Investment Trends**: Fixed asset investment growth has slowed, indicating weakness in traditional sectors like real estate and infrastructure. The focus is shifting towards technology and domestic consumption [4]. - **Market Recommendations**: The report suggests focusing on technology sectors benefiting from domestic cycles and improving supply chains in the real estate sector [4]. 3. Weekly Market Review and Sector Valuation - The construction materials sector has underperformed compared to the broader market indices, with a 1.60% increase against a 3.24% rise in the CSI 300 index [4]. - The report highlights the importance of industry self-discipline and the potential for price stabilization in the cement sector due to supply-side adjustments [5][11]. 4. Price and Inventory Trends - **Cement Prices**: The report notes a slight increase in cement prices in certain regions, with expectations for continued price fluctuations due to seasonal demand [11][12]. - **Glass Inventory**: The increase in glass inventory suggests a need for demand recovery to stabilize prices [50]. 5. Recommendations for Key Companies - The report recommends focusing on leading companies in the cement and fiberglass sectors, such as China National Building Material and China Jushi, which are expected to benefit from market adjustments and technological advancements [5].

Industry Investment Rating - The investment rating for the construction materials industry is "Outperform the Market" and is maintained [1] Core Views - The report highlights that during the 14th Five-Year Plan period, China is expected to construct and renovate over 700,000 kilometers of underground pipelines, with new investment needs exceeding 5 trillion yuan. This initiative is a key focus for the government and is expected to significantly boost investment and consumption, creating substantial domestic demand opportunities. Recommended companies to watch include China Liansu, Qinglong Pipeline, and Donghong Co [4] - In the cement sector, the demand recovery is slow, with a year-on-year decline of 8.6% in cement production in August 2025, totaling 154 million tons. The industry is currently in a low demand and price phase, but capacity utilization is expected to improve due to policies limiting overproduction. Companies to focus on include Conch Cement and Huaxin Cement [5][10] - The glass industry is experiencing a downward trend in demand due to the real estate sector's impact, with prices showing signs of weakening post-holiday. The report suggests that while environmental regulations may not lead to a drastic reduction in capacity, they will increase costs and accelerate industry adjustments. Key players to monitor include Qibin Group [5][15] - The fiberglass sector is seeing a positive trend driven by demand from the AI industry, with expectations for explosive growth in low-dielectric products. Companies like China Jushi and China National Building Material are highlighted as potential beneficiaries [5] - The consumer building materials sector has reached a profitability bottom, with no further price declines expected. The report anticipates a recovery in profitability for leading companies in the second half of the year, with firms like Oriental Yuhong and Sanke Tree recommended for attention [5] Summary by Sections Cement - The cement market is gradually entering its peak season, but overall demand recovery is slow. The construction sector's demand has not fully materialized due to weather disruptions and the pace of demand release. The report notes that the industry is currently at a low point in both demand and prices [10] - In August 2025, cement production was 154 million tons, reflecting an 8.6% year-on-year decline [10] Glass - The glass industry is facing weak demand post-holiday, with significant inventory increases affecting price stability. The report indicates that the supply-demand imbalance persists, and future performance will depend on policy changes and downstream inventory replenishment [15] Fiberglass - The fiberglass sector is benefiting from the AI industry's growth, with expectations for a significant increase in demand and prices for low-dielectric products. The report emphasizes a positive outlook for the industry [5] Consumer Building Materials - The consumer building materials sector is expected to see a recovery in profitability, with leading companies actively pursuing price increases. The report suggests that the sector has reached a profitability bottom, and improvements are anticipated in the latter half of the year [5]

Core Viewpoint - The construction materials industry is facing significant challenges due to declining prices and increased losses, prompting the government to implement a "Stabilization Growth Work Plan" for 2025-2026 aimed at improving profitability and promoting green and digital development [1][3]. Industry Overview - The construction materials sector is crucial for national economic growth, but it has been impacted by falling prices in cement and glass, leading to an expanded loss margin and structural market issues [1]. - The Ministry of Industry and Information Technology and five other departments have issued a plan to enhance profitability and promote green materials, targeting over 300 billion yuan in revenue from green construction materials by 2026 [1]. Market Conditions - In 2024, the domestic cement industry's profit is projected to be 26.6 billion yuan, a nearly 90% decline from the historical peak of 186.7 billion yuan in 2019 [3]. - Cement production from January to September 2025 was 1.259 billion tons, a year-on-year decrease of 5.2% [3]. - The price of P.O 42.5 bulk cement hit a yearly low of 267.11 yuan per ton in mid-August 2025, reflecting a downward trend in cement prices [3]. Capacity Control Measures - The industry is actively responding to the "anti-involution" policy by increasing the number of shutdown days for production lines and eliminating inefficient capacity [4]. - As of September 2025, the total capacity of suspended cement clinker was approximately 118,000 tons per day, an increase from 99,600 tons per day in the same period of 2024 [4]. - The cement industry has seen a significant increase in concentration, with the top ten companies' clinker capacity concentration rising from 56.5% to over 65% [5]. Diversification and Innovation - Companies are diversifying by expanding into related industries such as aggregates and concrete, and through investments in new sectors to mitigate risks and foster growth [8]. - Conch Cement is actively investing in the photovoltaic industry and has established a distributed photovoltaic power station with a capacity of approximately 38 megawatts [11]. Green and Low-Carbon Development - The industry is increasingly adopting energy-saving and carbon-reducing technologies, with 65% of the glass production capacity now using natural gas as an energy source [11]. - The cement sector is implementing carbon capture and utilization technologies, optimizing energy consumption, and enhancing digital management to reduce carbon emissions [11]. - The government is supporting green production through subsidies, tax reductions, and green finance, encouraging companies to innovate and reduce resource consumption [12].

Core Viewpoint - The construction materials industry in China is facing significant challenges due to declining prices and demand, leading to increased losses and structural issues. The government has introduced a growth stabilization plan for 2025-2026 to enhance profitability and promote green and digital development in the sector [5][6]. Group 1: Industry Challenges - The construction materials industry is a crucial foundation for the national economy, but recent years have seen a decline in prices for key products like cement and glass, resulting in an expanded loss margin and highlighted structural problems [3]. - In 2024, the domestic cement industry's profit is projected to be 26.6 billion yuan, a nearly 90% drop from the historical high of 186.7 billion yuan in 2019. The demand has reverted to levels seen before 2010, necessitating a restructuring of competitive order [7]. - From January to September 2025, domestic cement production was 1.259 billion tons, a year-on-year decrease of 5.2%, with prices continuing to decline [7]. Group 2: Government Initiatives - The Ministry of Industry and Information Technology and five other departments issued the "Construction Materials Industry Stabilization Growth Work Plan (2025-2026)," aiming for a significant improvement in profitability and a target of over 300 billion yuan in revenue from green building materials by 2026 [5]. - The plan emphasizes strict capacity control, nurturing emerging markets, and accelerating green production to transition towards high-quality, low-carbon development [5][8]. Group 3: Capacity Control Measures - To address the sluggish market, the industry is implementing strict capacity control measures. For instance, Conch Cement has increased the number of days its production lines are idled and has eliminated 16 production lines, accounting for over 22% of the total capacity eliminated in the industry [8][9]. - By the end of 2025, it is expected that 10% of the total cement capacity will be eliminated, with the concentration of capacity among the top ten companies rising from 56.5% to over 65% [9]. Group 4: Innovation and Market Development - Companies are diversifying their operations to mitigate risks and foster new growth points. For example, Conch New Materials is acquiring a 51% stake in a plastic products company to enhance synergy and expand into new markets [11]. - The cement industry is increasingly exploring horizontal expansions into aggregates and vertical extensions into concrete, leveraging synergies for competitive advantage [12]. Group 5: Green and Low-Carbon Initiatives - The industry is advancing towards green and low-carbon production through technological innovations, such as the transition to natural gas in glass production, which has reached 65% of total capacity [15]. - The cement sector is adopting carbon capture technologies and optimizing energy consumption, with the proportion of green and smart factories increasing to over 68% [15][16].

Group 1: Industrial Sector - Industrial product futures prices increased, with the South China industrial product index rising by 2.8%[2] - Steel and building materials production and apparent demand improved, with cement clinker capacity utilization rising[2] - Polyester and weaving industry operating rates showed marginal recovery, while automotive tire production rates rebounded[2] Group 2: Real Estate - New home sales in 30 major cities decreased by 21.0% year-on-year, a decline of 1.1 percentage points from the previous week[2] - The second-hand housing listing price index fell by 0.92% in the last four weeks as of October 13[2] - New home sales in October showed a year-on-year decline of 23.4%, a drop from the previous month[2] Group 3: Domestic Demand - Retail sales of automobiles decreased by 6% year-on-year from October 1-19, with a preliminary estimate of a 2.6% decline for the month[2] - Major home appliance retail sales fell by 17.0% year-on-year, a drop of 13.4 percentage points from the previous value[2] - Domestic flight operations increased by 2.3% year-on-year, while the Baidu migration index rose by 11.5%[2] Group 4: External Demand - Port cargo throughput increased by 0.9% year-on-year as of October 19, while container throughput rose by 4.3%[2] - The China export container freight index increased by 2.0% week-on-week, with Shanghai and Ningbo export container prices continuing to rise[2] - South Korea's export value increased by 9.7% year-on-year for the first 20 working days of October, although the growth rate declined from September[2] Group 5: Price Trends - Futures prices for coking coal rose by 5.9%, with spot prices in Shanxi increasing by 5.0%[2] - Rebar futures closed up by 0.3%, with spot prices rising by 0.1%[2] - The overall industrial product price performance showed a positive trend, with various indices reflecting increases in key materials[2]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The long - term logic of steel prices remains unchanged under the gradually loosening macro - environment, but the weak real - demand pattern of steel is difficult to improve significantly in the short term [2]. - For the black sector, the report maintains a non - pessimistic view. It believes that finding callback positions to do rebounds may be more cost - effective than shorting [10]. - For manganese silicon, if the black sector strengthens, pay attention to potential disturbances in the manganese ore end; otherwise, it is expected to follow the black sector's trend. For silicon iron, it is likely to follow the black sector's trend with a low cost - performance for operation [10]. - For industrial silicon, it is expected to move in a short - term consolidation, easily following the commodity environment. For polysilicon, the supply - demand pattern may improve, and the price shows a wide - range shock pattern [13][16]. - For glass, it is expected to continue a weak and narrow - range shock trend. For soda ash, the price is expected to maintain a stable and weak trend [19][21]. 3. Summary According to Related Catalogs Steel **Market Information** - The closing price of the rebar main contract was 3046 yuan/ton, down 25 yuan/ton (- 0.81%) from the previous trading day. The registered warehouse receipts increased by 1437 tons, and the main contract positions increased by 81220 lots. The Tianjin and Shanghai spot prices decreased by 10 yuan/ton and 20 yuan/ton respectively [1]. - The closing price of the hot - rolled coil main contract was 3250 yuan/ton, down 6 yuan/ton (- 0.18%) from the previous trading day. The registered warehouse receipts decreased by 4799 tons, and the main contract positions decreased by 182 lots. The Le Cong and Shanghai spot prices decreased by 0 yuan/ton and 10 yuan/ton respectively [1]. **Strategy Viewpoints** - Macroscopically, the "15th Five - Year Plan" period is crucial. Future development focuses on high - quality development of real estate and population. Fundamentally, rebar shows a neutral performance with both supply and demand increasing and inventory decreasing. Hot - rolled coils have a slight decline in production, rising demand, and marginal inventory reduction but still at a relatively high level [2]. - The steel mill profitability rate has declined significantly, and the molten iron output has dropped significantly, reducing the supply - side pressure marginally. In the short term, the weak real - demand pattern of steel is difficult to improve [2]. Iron Ore **Market Information** - The main contract (I2601) of iron ore closed at 771.00 yuan/ton, with a change of - 0.77% (- 6.00), and the positions increased by 4501 lots to 56.56 million lots. The weighted positions were 95.82 million lots. The spot price of PB powder at Qingdao Port was 778 yuan/wet ton, with a basis of 55.83 yuan/ton and a basis rate of 6.75% [4]. **Strategy Viewpoints** - Supply: The overseas iron ore shipment volume has rebounded, with increases in Australia, Brazil, and FMG's shipments, and a slight increase in non - mainstream countries' shipments. The near - end arrival volume has decreased [5]. - Demand: The average daily molten iron output has dropped below 240,000 tons, affected by weak steel prices, low mill profitability, and environmental protection in Hebei. The contradiction between high molten iron and terminal demand has been realized, and the molten iron output has decreased [5]. - Inventory: Port inventory continues to increase, and mill inventory has a slight increase. Fundamentally, the iron ore demand has weakened, and the port inventory has continued to accumulate, putting pressure on prices [5]. - Macroscopically, pay attention to the "15th Five - Year Plan" details and the results of Sino - US economic and trade consultations, which may improve market sentiment [5]. Manganese Silicon and Silicon Iron **Market Information** - On October 24, the main contract of manganese silicon (SM601) closed down 0.79% at 5772 yuan/ton. The Tianjin spot price was 5720 yuan/ton, with a basis of 138 yuan/ton. The main contract of silicon iron (SF601) closed down 0.57% at 5542 yuan/ton. The Tianjin spot price was 5650 yuan/ton, with a basis of 108 yuan/ton [7][8]. **Strategy Viewpoints** - Macroscopically, important meetings have positive statements, but there is no super - expected content. Pay attention to Sino - US economic and trade consultations and the APEC meeting. The black sector's fundamentals have concerns about high supply and low demand, and the mill profitability rate has dropped to 47.62%. There may be a "negative feedback" risk in the short term [9]. - For the black sector, it is not pessimistic. It is more cost - effective to find callback positions to do rebounds. For manganese silicon, pay attention to potential disturbances in the manganese ore end. For silicon iron, it is likely to follow the black sector's trend [9][10]. Industrial Silicon and Polysilicon **Market Information** - Industrial silicon: The main contract (SI2601) closed at 8920 yuan/ton, down 1.55% (- 140). The weighted positions decreased by 11,008 lots to 427,574 lots. The spot price of East China non - oxygenated 553 was 9300 yuan/ton, with a basis of 380 yuan/ton; the 421 was 9650 yuan/ton, with a basis of - 70 yuan/ton [12]. - Polysilicon: The main contract (PS2601) closed at 52,305 yuan/ton, down 1.46% (- 775). The weighted positions decreased by 12,056 lots to 231,619 lots. The average spot prices of N - type granular silicon, N - type dense material, and N - type re -投料 were unchanged, with a basis of 675 yuan/ton [15]. **Strategy Viewpoints** - Industrial silicon: Supply pressure persists, with increasing weekly output. Demand support is weakening, and there is no obvious improvement in supply and demand. It is expected to move in a short - term consolidation, following the commodity environment [13][14]. - Polysilicon: Supply pressure may be marginally relieved as some capacities may be overhauled. The downstream start - up rate is expected to be stable. The supply - demand pattern may improve, and the price shows a wide - range shock pattern [16]. Glass and Soda Ash **Market Information** - Glass: The main contract closed at 1092 yuan/ton, down 1.44% (- 16). The weekly inventory of float glass sample enterprises increased by 233,740,000 cases (+ 3.64%). The top 20 long - position holders increased 9086 lots, and the top 20 short - position holders increased 66,487 lots [18]. - Soda ash: The main contract closed at 1229 yuan/ton, down 0.49% (- 6). The weekly inventory of soda ash sample enterprises increased by 160,000 tons (+ 3.64%), with a decrease in heavy - soda inventory and an increase in light - soda inventory. The top 20 long - position holders increased 6467 lots, and the top 20 short - position holders increased 32,937 lots [20]. **Strategy Viewpoints** - Glass: Entering the end of the traditional peak season, downstream procurement has slowed down, and supply has increased. The supply - demand contradiction is difficult to resolve in the short term. It is expected to continue a weak and narrow - range shock trend [19]. - Soda ash: The industry supply remains high, and demand is weak. The supply - demand pattern is difficult to reverse in the short term, and the price is expected to be stable and weak [21].

Core Insights - The report highlights significant growth in foreign direct investment (FDI) inflows in certain African countries, particularly Zambia and Mozambique, which are expected to see notable year-on-year increases in 2024 [1][2] - The report also notes positive currency exchange rate movements in Africa, with Tanzania appreciating by 7.13%, Nigeria by 3.93%, and Kenya by 0.04% in Q3 [1][2] Group 1: Industry Performance - The cement industry shows a national average price of 348 RMB per ton, down 63 RMB year-on-year, with an average shipment rate of 45.1% [3] - The glass industry reports a floating glass average price of 1243.68 RMB per ton, a decrease of 57.29 RMB, with inventory days increasing to 30.51 days [3] - The concrete mixing station's capacity utilization rate is at 7.23%, reflecting a decrease [3] Group 2: Company Developments - Companies such as Huaxin Cement and China National Materials have released their Q3 reports, indicating a potential increase in overseas performance, particularly in Africa [2][5] - Yashi Chuangneng plans to sell certain industrial land use rights and assets to improve its financial structure and support core business development [5] Group 3: Market Trends - The AI new materials sector is expected to see growth, with leading companies likely to expand production in response to high demand [2] - The report anticipates that the market will focus on the confirmation of material solutions and the impact of supply constraints on pricing [2]

Core 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].

Investment Rating - The report maintains a positive outlook on overseas expansion opportunities, particularly in Africa, and highlights the potential for significant contributions from companies like Huaxin Cement and China National Materials [3][12] Core Viewpoints - The report emphasizes the growing foreign direct investment (FDI) inflow in Africa, with notable increases in Zambia and Mozambique for 2024, and a consistent growth trend in Tanzania from 2021 to 2024 [3][12] - The report expresses optimism regarding AI-driven new materials, anticipating that leading companies will actively expand production to meet high demand [3][13] Summary by Sections Weekly Discussion - The report notes that the focus on overseas performance is expected to rise, particularly with the recent quarterly reports from Huaxin Cement and China National Materials, indicating strong overseas order performance [3][12] - It highlights positive currency exchange trends in Africa, with significant appreciation in currencies like the Tanzanian shilling and Nigerian naira during Q3 [3][12] Cyclical Linkage - Cement prices averaged 348 RMB/t this week, down 63 RMB/t year-on-year but up 1 RMB/t month-on-month, with an average national shipment rate of 45.1% [4][14] - The report indicates a decline in glass prices, with the average price for float glass at 1243.68 RMB/ton, down 4.40% from the previous week [4][14] Market Performance - The construction materials index decreased by 0.60% this week, with specific segments like glass manufacturing and cement manufacturing showing declines of 1.82% and 1.90%, respectively [17] - The report notes that the domestic concrete mixing station's capacity utilization rate was 7.23%, reflecting a slight decrease [4][14] Price Changes in Construction Materials - The report details that the national cement market price increased by 0.4% this week, with price adjustments in regions like Guizhou and Jiangsu [24][27] - Float glass prices have shown a downward trend, with the average price dropping significantly due to increased inventory levels [40][53] Fiber and Carbon Fiber Market - The report states that the domestic price for 2400tex alkali-free winding direct yarn remains stable at 3524.75 RMB/ton, with no significant changes observed [60] - The carbon fiber market price is reported to be stable at 83.75 RMB/kg, supported by low raw material prices [67][70]

Investment Rating - The industry rating is "Recommended" [4] Core Views - The "14th Five-Year Plan" emphasizes urban renewal and underground pipeline renovation, with an expected investment demand exceeding 5 trillion yuan for over 700,000 kilometers of pipeline construction [6] - The report highlights the impact of renewed tariff conflicts and the acceleration of industry self-discipline, recommending companies with strong pricing power and cost advantages in the cement and waterproof sectors [6] - The report notes that the special electronic fabric sector is experiencing high demand, with companies like China Jushi and China National Materials Technology benefiting from this trend [7] Summary by Sections Investment Suggestions - Recommended companies benefiting from urban pipeline renovation include Qinglong Pipe Industry, Donghong Co., and China Liansu [6] - In the cement sector, companies like Huaxin Cement and Conch Cement are recommended due to their cost and scale advantages amid tariff conflicts [6] - The waterproof industry is seeing frequent price increases, with recommendations for Oriental Yuhong and Keshun Co. [6] - In the photovoltaic glass sector, companies such as Qibin Group, Fuyao Glass, and Xinyi Solar are recommended due to price increases [6] - The report suggests strong resilience in operations for companies like Sanhe Tree and high dividend yield firms like Rabbit Baby and Weixing New Materials [6] - The fire alarm leader Qingniao Fire is recommended due to its upcoming commercialization of fire-fighting robots [7] - The report highlights the strong performance of special electronic fabrics, recommending China Jushi and China National Materials Technology [9] Market Trends - The national cement market price increased by 0.4% week-on-week, with price rises in regions like Guizhou and Jiangsu [22][23] - The average price of float glass decreased by 4.40% to 1243.68 yuan/ton, indicating a shift from an upward trend to a decline [64] - The photovoltaic glass market remains stable, with mainstream order prices for 2.0mm coated panels at around 13 yuan/square meter [72]