Company News

Summary of Key News in the Aggregate Industry for Q1 2024

The "Government Work Report" from this year's National Two Sessions proposed "vigorously advancing the construction of a modern industrial system and accelerating the development of new productive forces," which has provided a clear direction for the development of China’s aggregate industry in 2024. The introduction of local government special bonds amounting to 3.9 trillion yuan, along with 1 trillion yuan in ultra-long-term special national bonds, aims to accelerate the implementation of major projects in the 14th Five-Year Plan. These initiatives focus on the transformation of traditional industries toward high-end, intelligent, and green development, while actively promoting new urbanization and steadily implementing urban renewal actions. These efforts have further boosted market confidence in the aggregate sector and provided strong support for aggregate market demand in 2024.

Long-Term Impact of Real Estate and Population Data on China's Aggregate Industry

Infrastructure investment and real estate development are two key areas closely linked to aggregate market demand. According to data from the National Bureau of Statistics, infrastructure investment grew by 5.9% in 2023, while national real estate development investment declined by 9.6%. From the operation of industries such as cement and aggregates in 2023, it is clear that growth in infrastructure construction has not been sufficient to offset the decline in aggregate demand caused by the downturn in real estate. In the long term, the real estate sector is influenced by population trends, land availability in the medium term, and financial conditions in the short term. A particularly concerning statistic is that China's population decreased by 2.08 million in 2023, and this negative population growth will have a far-reaching impact on future demand for aggregates in real estate and other sectors.

Safety Production Becomes a "Hardline" for Normal Operations in Aggregate and Mining Enterprises

The State Council’s Work Safety Committee issued "Tough Measures to Prevent and Control Major Accidents in the Mining Sector," which outlines eight key measures: strictly enforcing mining safety production responsibilities at all levels, improving the quality of risk hazard inspections and rectifications, cracking down on illegal mining operations, strengthening disaster management, enhancing the qualifications of workers, enforcing strict project approval and safety production licenses, strengthening national supervision of mining safety, and strictly investigating accidents and conducting safety education. These measures aim to prevent major production safety accidents in the mining sector.

Release of the 2023 China Aggregate Industry Report

The 2023 China Aggregate Industry Report, published by the China Aggregates Association, shows that in 2023, both the output and prices of aggregates continued to decline, with the national aggregate output reaching 1.6835 billion tons. On the supply side: the risk of excess aggregate production capacity has started to emerge, and the market is experiencing an oversupply. On the demand side: real estate investment continues to decline, while infrastructure investment remains strong. However, the impact of infrastructure on aggregate demand is limited, and overall, the effective demand for aggregates is significantly insufficient. As a result, some aggregate enterprises have seen their net profits decline, with some even facing losses. The Chinese aggregate industry has entered a new stage of development, focusing on improving quality and efficiency in existing production while adjusting the structure of new production.

Official Launch of the China Aggregate Price Index Special Page

The China Aggregate Price Index, jointly compiled by the China Aggregates Association and Shanghai Steel Union Century Construction Network, was released on December 7, 2023. In the first quarter of 2024, the special page for the China Aggregate Price Index was officially launched. This page covers data, index trends, and background information, and is updated in real-time on both the China Aggregates Association website and the Century Construction Network. As the first comprehensive and systematic price index in China’s aggregate industry, the China Aggregate Price Index aims to enhance the global influence of Chinese aggregate enterprises, increase market competitiveness, and assist in the digital and intelligent transformation of the aggregate industry. It also aims to guide the healthy and stable development of the aggregate market.