Research Report

Cement prices continued to outperform last week, as the market searches for near-term equilibrium


■ The average cement price outperformed other sectors last week, increasing 7.8% wow.

Plastic pipe prices increased about 1.80% wow, and the futures glass price was up

3.2% wow last week.

■ All raw material prices increased last week: soda ash recorded the highest increase,

up 4.66% wow, and coal and crude oil prices increased by about 2% wow.

■ Building materials stocks under our coverage decreased by 6.55% wow, on average,

underperforming the Hang Seng Index (HSI) increase of 0.45%. The share prices of

companies in the cement sector were largely in line with the average of building

material stocks. BBMG-A [601992.CH.HK; ADD] was best performer last week, while

Conch Cement-A [600585.CH; ADD] was a laggard.