Cement stocks extended their declines in the afternoon session. At the time of writing, CNBM (03323) fell 4.62% to HK$4.96, CONCH CEMENT (00914) dropped 3.46% to HK$22.88, WESTCHINACEMENT (02233) declined 3.26% to HK$2.97, and CR BLDG MAT TEC (01313) slipped 1.89% to HK$1.56.

Dongwu Securities noted that in late November, cement demand in southern China saw a slight recovery, but demand in northern regions weakened due to colder weather, leading to a 0.5 percentage point drop in the shipment rate of key cement producers nationwide. On pricing, earlier price hikes in several provinces failed to stabilize, with some regions seeing price pullbacks, driving overall market prices downward. Given that southern cement producers still intend to push for further price increases, the report expects cement prices to remain volatile in the near term.

Ping An Securities added that the cement sector's performance weakened in 2025, with prices peaking early before declining. Cumulative cement output from January to October fell 6.7% year-on-year. Looking ahead to 2026, considering weak corporate profitability and potential supply-demand improvements if overproduction is restricted, cement profits may see a modest recovery compared to the second half of 2025. Stricter daily production limits could also facilitate smoother price hikes during peak seasons, while industry consolidation progress remains a key focus.