Positive news, 600307, over 840,000 hands sealed at daily limit! Cement enters a new round of price increases, 3 stocks swept by margin traders

Steel sector remains strong throughout the day!

On March 17, the A-shares experienced a day of fluctuation and adjustment, with the Shanghai Composite Index closing down 0.85% at 4,049.91 points. The steel sector was strong all day, with Anyang Steel and Jiu Steel Hongxing (600307) both hitting the daily limit-up, with order volumes of 56,700 and 842,700 lots respectively; Zhongnan Shares surged 7.06%.

Recently, the Ministry of Industry and Information Technology issued the “Notice on Launching the Industrial Data Foundation Action and Pilot Construction of High-Quality Industry Data Sets Empowered by Artificial Intelligence.” The notice proposes selecting leading companies in key industries like steel to lead efforts, forming consortia with upstream and downstream enterprises, research institutes, data service providers, and large model manufacturers. The goal is to explore data development and utilization paths and circulation cooperation mechanisms across enterprises and industry chains, focusing on key data technology breakthroughs, industry data standards, high-quality data set creation, and application scenarios.

Guosheng Securities pointed out that the absolute valuation of the steel sector has recovered from deep undervaluation to a moderately low level. There is little bubble in valuation, and profit expectations have not been fully priced in, leaving room for absolute gains.

Orient Securities stated that iron ore inventories have reached historical highs, with downward potential, while steel inventory levels are relatively low year-over-year. As downstream companies resume work and enter the peak season of traditional manufacturing, the volume of construction materials transactions has significantly increased. Steel demand is expected to improve marginally, with continued profitability. Market awaits policy guidance on steel supply-side reforms to further boost steel companies’ profits.

Cement Enters a New Price Increase Wave

According to Cement People Network, since the Spring Festival in the Year of the Horse, the Northeast cement market has led the recovery, with stepped price adjustments steadily raising prices. As of March 15, some areas in the Northeast completed three consecutive rounds of price increases, with a total increase of 100 yuan per ton.

This round of price adjustments was gradual over three phases. In late February, demand from large construction projects began to pick up, and raw material costs rose, leading to an initial increase of 40 yuan/ton, solidifying the market price floor. In early March, a second increase of 30 yuan/ton further reinforced the upward trend. On March 15, a third increase of 40 yuan/ton brought the total rise over 100 yuan/ton, covering regions including Heilongjiang, Jilin, Liaoning, and parts of Inner Mongolia.

The price increase in the Northeast continues to spread nationwide, gradually forming a pattern of rising cement prices across the country. Leading cement companies in East China, North China, and Northwest China are following the industry recovery, implementing price adjustment policies and raising ex-factory prices for various cement grades.

According to Baonian Construction Network data, since mid-March, cement companies in Anhui, Jiangsu, Zhejiang, and other regions have issued frequent price adjustment notices, with prices generally rising by 20 to 40 yuan/ton. The bulk cement prices in the Yangtze River Delta have increased, with mainstream brands in northern Zhejiang and southern Jiangsu raising prices by 20 yuan/ton for P.O42.5 bulk cement. Shanghai followed suit, with significant increases in outbound volume and inventory falling to 31%, indicating ongoing improvement in supply and demand.

Pengyuan Credit Rating noted that as the first year of the “14th Five-Year Plan,” major infrastructure projects are accelerating, with increased funding support. Urban renewal and old city reconstruction projects are ongoing, likely providing core support for cement demand. Policies like “dual carbon” and “dual control” will continue to optimize industry supply. It is expected that cement demand will gradually decline in total volume by 2026, with the decline narrowing.

Some Cement Stocks Report Full-Year Performance

Since 2026 (up to March 16), three cement stocks have seen increased financing, with Huaxin Cement, Shangfeng Cement, and Tapai Group receiving net purchases of 49.38 million, 40.78 million, and 13.95 million yuan respectively.

As of June 2025, Huaxin Cement’s total capacity includes 126 million tons/year of cement (grinding capacity, including joint ventures), 50,000 tons/year of cement equipment manufacturing, 48,404 cubic meters/hour of ready-mixed concrete (including entrusted processing capacity), 820,000 tons/year of lime, and 700 million cement bags annually. Cement business accounts for 57% of total revenue, dominating the company’s operations.

Shangfeng Cement produced 11.08 million tons of clinker and 11.17 million tons of cement in the first three quarters of 2025; total cement and clinker sales reached 14.15 million tons, down 6.21% year-over-year; gross profit per ton of cement is about 55 yuan. The company maintains industry-leading cost competitiveness and gross margin. It continues to focus on increasing revenue, reducing costs, controlling expenses, and improving efficiency through refined operations and technological innovation.

According to Securities Times and Data Treasure, as of March 17, 16 cement stocks have released their 2025 performance reports. Based on median data from annual reports, quick reports, or forecasts, 7 stocks are expected to be profitable in 2025. Huaxin Cement, Tapai Group, Jianfeng Group, and Jinyu Jidong have net profits of 2.825 billion, 634 million, 460 million, and 220 million yuan respectively.

Huaxin Cement expects a net profit attributable to parent of 2.7 to 2.95 billion yuan in 2025, an increase of 11.6% to 21.9%. The growth is mainly driven by the continued expansion of overseas operations, which significantly contribute to performance; domestic operations benefit from lower fuel costs and various cost reduction and efficiency measures, leading to a recovery in unit profitability.

Tapai Group expects revenue of 4.107 billion yuan in 2025, down 3.99% year-over-year; net profit attributable to parent is 634 million yuan, up 17.87%.

In terms of net profit changes, Jianfeng Group, Wannianqing, and Sanhe Pipe Piles saw their full-year net profits double. Jianfeng Group’s growth was the highest at 325.97%. Sichuan Jinding and Jinyu Jidong are also expected to turn losses into profits.