Shares of cement companies in Hong Kong continued to trend lower.

At the time of writing, CNBM (HKEX: 03323) was down 7.64% at HK$4.47. CR BLDG MAT TEC (HKEX: 01313) fell 4.96% to HK$1.15. HX BLDG MAT (HKEX: 06655) declined 4.57% to HK$13.77. CONCH CEMENT (HKEX: 00914) dropped 1.09% to HK$18.13.

The sector faced a challenging first quarter of 2026, characterized by declining volumes and prices, leading to significant pressure on profits. Combined net profit attributable to shareholders for 18 major listed cement companies on the A-share and Hong Kong markets showed a loss of approximately RMB 14.52 billion. Among these, 12 companies reported losses while only six were profitable. While CONCH CEMENT and HX BLDG MAT together reported a net profit exceeding RMB 21 billion, nearly all other firms in the sector were under pressure.

Analysts noted that unseasonably hot and rainy weather in May led to insufficient cement demand. The national clinker kiln shutdown rate was slightly lower than in April, easing supply pressure and allowing for a small inventory build-up. Although some regions attempted to implement price increases, the actual execution fell short of expectations, resulting in continued weakness in cement prices for May.

Looking ahead, with coal costs remaining high in June, companies are expected to continue attempting price hikes. However, weakening end-user demand is likely to constrain these efforts. Cement prices are anticipated to remain volatile with a tendency to weaken in the near term.