Tianfeng Securities: In the short term, the profitability support at the bottom of the cement industry is relatively strong

Tianfeng Securities' research report indicates that in terms of cement, most provinces in the north have begun to implement staggered production during the heating season, with over 85% of clinker lines in a state of kiln suspension. Last week, various provinces successively announced their kiln suspension plans for December, with the Yangtze River Delta region suspending operations for 13 to 15 days; under environmental pressure, Hunan plans to suspend operations for a month in December. Overall, the intensity of staggered production has increased. In the short term, the bottom-line profit support for cement is relatively strong. In 2025, leading enterprises will begin to address the indicators for excess production capacity. As of November, a total of 52.5 million tons of capacity has been replaced and increased, while 83.59 million tons of capacity has been withdrawn. The policy in 2025 mainly provides a window period for excess cement enterprises to make up for their indicators. Tianfeng Securities believes that the actual effects of excess production governance are expected to begin to emerge in 2026