According to the report released by China Galaxy Securities, the urban development is shifting towards improving quality and efficiency of existing stock. Leading companies in the consumer building materials industry, which have a well-established channel layout, good category expansion, product quality advantages, and brand advantages, are expected to benefit. The "anti-involution" trend is accelerating the optimization of supply in the cement industry, and the supply-demand contradiction is expected to ease, with expectations for cement price increases. Regional leading enterprises are likely to see profit recovery. In terms of fiberglass, demand recovery driven by emerging markets is expected to lead to price increases for mid-to-high-end products, boosting the performance of related companies. Under the "anti-involution" sentiment, the supply-demand pattern in the glass industry is expected to gradually improve.

The main viewpoints of China Galaxy Securities are as follows:

Cement: Supply and demand have not seen significant improvement, and the arrival of the seasonal peak is expected to drive price increases

In August, cement remained in the seasonal off-peak period, with high temperatures and rainy weather continuing to affect downstream construction. National cement market demand was weak, and the operating load of cement mills decreased month-on-month; the national clinker kiln shutdown rate was high, and clinker inventory shifted from rising to falling, but the issue of oversupply in the industry still exists. The average cement price in August was 271.67 yuan/ton, a month-on-month decrease. Looking ahead, demand is expected to show seasonal recovery from September to November, combined with the acceleration of "anti-involution" to reduce production capacity in the industry, which is expected to ease supply and demand and drive cement prices.

Consumer Building Materials: Retail sales slightly decreased, urban renewal is expected to boost old renovation and repair demand

From January to July 2025, retail sales of construction and decoration materials increased by 2.2% year-on-year, with July's retail sales decreasing by 0.5% year-on-year and 14.45% month-on-month. July is a low season for real estate sales and the building materials and home furnishing market, leading to fluctuations in retail sales. The central urban work conference in July mentioned steadily advancing the renovation of urban villages and dilapidated houses, and promoting the construction of urban infrastructure lifeline safety projects. As urban renewal continues to advance, it is expected to boost demand for old renovation and repair of consumer building materials such as pipes, waterproofing, and coatings.

Fiberglass: Prices of coarse yarn from small and medium-sized enterprises are loosening, and demand for high-end electronic yarn products is strong

In terms of coarse yarn, in August, coarse yarn was still supported by shipments of high-end products such as wind power yarn; production capacity supply remained stable at a high level, and companies faced significant inventory pressure. Under the pressure of supply and demand contradictions, the mainstream product prices of small and medium-sized enterprises slightly loosened in August, leading to a stable but weakening coarse yarn market price. Looking ahead, with the arrival of the traditional peak season and the advocacy of "anti-involution," coarse yarn prices are expected to rise. For electronic yarn, in August, demand for electronic yarn mainly came from high-end products, while the supply pressure for traditional electronic yarn products increased, leading to a slight decrease in the prices of mainstream electronic yarn products. Looking ahead, downstream demand for electronic yarn is somewhat differentiated, with high-end products facing a supply-demand gap, while ordinary electronic yarn products have limited support from rigid demand. However, as the traditional peak season approaches, there are still expectations for demand improvement, which is likely to support a rebound in electronic yarn prices.

Float Glass: Demand remains weak, and prices adjusted back to pre-increase levels by the end of August

In August, the float glass market's rigid demand did not improve, and due to some reserves already held by the mid and downstream, the stocking demand in August was average; two production lines were ignited during the month, increasing industry production capacity supply and raising inventory pressure. The price of float glass basically fell back to the level before the price increase at the end of June, remaining at historical lows. Looking ahead, float glass demand may improve due to seasonal peak influences, which is expected to support a slight rebound in prices, but supply-side pressures still exist, limiting the price increase. It is expected that short-term prices will generally show a stable upward trend Risk Warning

The risk of significant fluctuations in raw material prices; the risk of downstream demand being lower than expected; the risk of new industry capacity exceeding expectations; the risk of policy advancement being slower than expected