Guangxi limited power cuts kiln cement companies to suspend production in large area

It is understood that Guangxi Cement Corporation received a notice of shutdown in late July. At present, the shaft kiln, which accounts for 25% of the province's production capacity, has ceased production. In addition to this. China Resources Cement's production cut-off capacity accounted for 25% of its total capacity in Guangxi, TCC (6 of the 5 production lines in Guigang have stopped), and Conch (3 in Fusui, Beiliu and Xing'an have stopped) 40%. Overall, the area of ​​production suspension in the province is approximately 45%, and it is expected that Guangxi's output will decline by 45% in August.

Considering that the peak of electricity consumption has passed since October, the production capacity of large companies will recover. CIIC analysts Luo Wei and Guan Xue said that the production of Conch Cement in Guangxi will be reduced by 1 million tons in the next five months, accounting for the second half of the year. Its Guangxi output is about 12%, while Guangxi's price is 15-18% higher than previously expected. Given the increase in fixed costs, the Guangxi region will affect neutrality. Production in Guangdong is not affected, and it is estimated that the net profit for August-December will be higher than the expected 30 yuan. The profit forecast for 2011 is expected to increase by 2%. Looking at this incident alone, the benefits of Tower Group and China Resources Cement will be even greater.