According to the report from China International Capital Corporation (CICC), the national cement shipment rate averaged 45.2% in August 2025, down from 48.8% in the same period last year. The cement production in August decreased by 6.2% year-on-year to 14.8 million tons, with weak demand for cement continuing in the off-season. In terms of glass, as of September 2025, the daily melting volume of float glass was 159,000 tons, roughly unchanged from the end of last year, and there has not been a large-scale cold repair in the industry. The supply exceeds demand, leading to manufacturers maintaining a relatively high inventory of 55 million boxes, with social inventory also showing a trend of accumulation. Additionally, in August, both supply and demand for steel were weak, with crude steel production at 77.37 million tons, a year-on-year decrease of 0.7%, and domestic apparent consumption of crude steel at 68.39 million tons, down 0.8% year-on-year.
<h2>CICC's main viewpoints are as follows:</h2>
Cement: Demand faces pressure, optimistic about marginal improvement in industry pattern during peak season
Demand continued to decline in August: The national cement shipment rate averaged 45.2% in August 2025, down from 48.8% in the same period last year. The cement production in August decreased by 6.2% year-on-year to 14.8 million tons, with weak demand for cement continuing in the off-season. Prices are relatively weak: As of September 12, the average cement price from July to September 2025 was 338 yuan/ton (376 yuan/ton in Q3 2024), but it has been observed that current cement prices have slightly rebounded from the low point in August. The national average cement price in September was 338 yuan/ton, an increase of 2 yuan/ton month-on-month, estimating a gross profit of 58 yuan/ton for cement companies in September, up 3 yuan/ton month-on-month. Optimistic about marginal improvement in industry demand after entering the peak season and price recovery after price increases. Recommended to pay attention to Conch Cement (00914), Shangfeng Cement (000672.SZ), and China Resources Cement Technology (01313).
Glass: Demand side continues to be under pressure, industry profitability awaits cold repair
From January to August 2025, the area of completed housing decreased by 17% year-on-year to 27.7 million square meters. Due to the continuous decline in the real estate sector, glass demand still faces significant pressure. On the supply side, as of September 2025, the daily melting volume of float glass was 159,000 tons, roughly unchanged from the end of last year, and there has not been a large-scale cold repair in the industry. The supply exceeds demand, leading to manufacturers maintaining a relatively high inventory of 55 million boxes, with social inventory also showing a trend of accumulation. Spontaneous cold repairs in the industry may still be the main means of capacity adjustment, and it is recommended to pay attention to the improvement in industry pattern driven by the contraction of supply under pressure on the profitability of float glass companies. Recommended to pay attention to Xinyi Glass (00868) and Qibin Group (601636.SH).
Steel: Weak supply and demand in the off-season, awaiting production reduction implementation
In August, both supply and demand for steel were weak, with crude steel production at 77.37 million tons, a year-on-year decrease of 0.7%, and domestic apparent consumption of crude steel at 68.39 million tons, down 0.8% year-on-year. Looking ahead, production control is expected to be further strengthened in the fourth quarter, improving the industry supply and demand, and the profitability cycle is expected to continue to recover. The trend of avoiding internal competition continues to unfold, focusing on two main lines: 1) From a long-term perspective, the current valuation of core industry assets is generally at historical lows and underestimated by the market. With the profitability cycle bottoming out, a valuation recovery is expected, primarily recommending Hualing Steel (000932.SZ); 2) From a short-term perspective, production control this year and mid-term capacity clearance have a greater marginal impact on rebar steel companies, and it is recommended to pay attention to steel companies with high efficiency and a high proportion of rebar
Risk Factors
Risk of continued downward demand, risk of rising raw material prices

600585

00914

000672

CICC released a research report indicating that cement demand remains weak in August 2025, with a shipment rate of 45.2%, a year-on-year decline, and production also decreased by 6.2%. Glass demand is under pressure, and industry profitability is at a low point, with no large-scale cold repairs yet. Both supply and demand in the steel sector are weak, with crude steel production and consumption both declining. CICC is optimistic about the improvement of the industry pattern during the peak season and recommends paying attention to CONCH CEMENT, SHANGFENG CEMENT, and China Resources Cement Technology

CICC: The off-season demand for cement and other building materials continues to be weak, focusing on opportunities for industry pattern optimization