Raw materials are the basis of cement production, including limestone, clay and coal. In recent years, the price of limestone and clay has been rising continuously, which directly leads to the increase of cement production cost. Limestone and clay are the main components of cement, and the price increase will directly affect the production cost of cement.

2. Rising energy prices

Cement production needs a lot of energy, including coal, oil and natural gas. In recent years, the rise of energy prices, especially the sharp rise of coal prices, has brought great pressure to cement production. The increase in energy prices directly leads to the increase in cement production costs, which in turn pushes up cement prices.

3. Overcapacity mitigation

In the past few years, China's cement production capacity has been in a state of excess, leading to a long-term downturn in cement prices. However, with the promotion of the government's overcapacity control policy, a large number of backward cement production enterprises have been eliminated from the market, and the phenomenon of overcapacity has been alleviated. The relief of overcapacity has reduced supply, but demand has not decreased, which is also an important reason for the increase in cement prices.

4. The pressure of environmental protection has increased

With the improvement of environmental awareness, the environmental protection requirements for cement industry are getting higher and higher. In order to meet the environmental protection standards, cement production enterprises need to upgrade their equipment, which increases the investment cost of enterprises. At the same time, the improvement of environmental protection requirements also leads to the increase of energy consumption in cement production, which further pushes up the production cost of cement.

5. Rising transportation costs

Cement is a commodity, and the transportation cost has an important influence on its price. In recent years, the increase in fuel prices has led to an increase in transportation costs. Cement needs to be transported from the place of origin to the place of sale, and the transportation cost is higher in areas with long transportation distance, so the increase of transportation cost is also an important factor leading to the increase of cement price.

final result

To sum up, the reasons for the current increase in cement prices mainly include the comprehensive influence of many factors, such as rising raw material prices, rising energy prices, alleviating overcapacity, increasing environmental pressure, and rising transportation costs. These factors lead to the increase of cement production cost, which in turn pushes up the cement price. With the gradual solution of these problems, the cement price may tend to be stable.