China Galaxy Securities says June cement demand was seasonally weak due to high
temperatures and Meiyu rains; clinker-line shutdowns varied by region as firms
accelerated capacity curtailment and clinker inventories declined. Cost
pressures in June prompted regional attempts to lift prices, leaving the
national average cement price slightly up MoM. Looking ahead, off-season demand
in July is unlikely to support prices, the marginal effect of staggered
production controls will fade, and cost-side support will lessen; the firm
expects cement prices to trend weaker at low levels in July.
