HK Stock Market Move | Cement stocks rise across the board in the morning session. According to reports, South Korea plans to import cement from China. Institutions point out that cement demand is expected to marginally improve in the second half of the year.

In the early trading session, cement stocks rose across the board. As of the time of writing, CR BLDG MAT TEC (01313) rose by 4.14% to HK$1.51, Anhui Conch Cement (00914) rose by 3.51% to HK$18.26, Huaxin Cement (06655) rose by 2.95% to HK$6.97, and CNBM (03323) rose by 2.73% to HK$2.26. On the news front, it was reported that due to the high cement prices in South Korea, the South Korean government has discussed a plan to import Chinese cement. Since 2021, the South Korean cement industry has raised prices four times, with the current price at around RMB 594 per ton, an increase of nearly 50%. It is expected that the import price of Chinese cement will be around RMB 506 per ton, approximately 15% cheaper than domestically produced South Korean cement. Importing cement requires various certifications and the construction of specialized storage facilities, taking approximately two years. GF SEC pointed out that the supply-demand relationship in the cement industry continued to deteriorate in the first quarter, with prices hitting bottom. In the second quarter, various regions actively reduced production and raised prices, leading to an improvement in profits quarter-on-quarter. However, the industry still operated at a loss in the first half of the year. Zhongjin Securities stated that looking ahead to the second half of the year, cement demand is expected to marginally improve, and leading companies in the peak season are likely to continue to drive price increases, lifting the industry's profit center.