There were fluctuations in the prices of sand and gravel in 2023. In June, though the prices of sand and gravel along the Xijiang River and in areas such as Shanxi and Guizhou remained stable, the prices of machine-made sand and gravel in Eastern and Western Chongqing, Hunan, Qingdao, and multiple ports along the Yangtze River showed a downward trend.
After the rebound in March, the price of machine-made sand and gravel at the ports along the Yangtze River experienced a continuous decline from April to June. The price of machine-made sand and gravel in Shanghai dropped by a maximum of 5 yuan/ton compared to the previous month, while the price of natural sand and gravel along the Yangtze River increased by 5-7 yuan/ton compared to the previous month.
The price of sand and gravel in Western Chongqing decreased by 2 yuan/ton compared to the previous month, and the price of high-quality machine-made sand and gravel in Eastern Chongqing decreased by 5-6 yuan/ton compared to the previous month. The price of sand and gravel in Hunan fluctuated and the fluctuation range was generally 1-2 yuan/ton.
In Pingdu, Qingdao, Shandong, the price of machine-made sand and gravel increased by 11 yuan/ton.
The rise or fall of sand and gravel prices in these regions was influenced by many factors. Here, Hongxing Group analyzes the reasons for fluctuation as below for your reference.
Market supply and demand: The supply and demand relationship of sand and gravel in the market is the most important factor that affects the price of sand and gravel. If supply is tight or demand surges, prices may rise, while oversupply or a decrease in demand may lead to a fall in prices.
Raw material cost: The production of sand and gravel requires the use of raw materials and equipment. The fluctuations in raw material prices, such as mining costs and blasting costs, will directly affect the production cost and final selling price of sand and gravel.
Transportation cost: The transportation cost of sand and gravel is an important factor affecting prices. If the production site of sand and gravel is far away from the market or it is difficult to transport them, the costs will increase, thereby affecting the final selling price.
Seasonal demand: In different seasons, the demand for sand and gravel in some regions may change. For example, the demand for sand and gravel may increase in seasons that are more suitable for construction work, while in other seasons, it may decrease, further leading to price fluctuations.
Environmental regulations: The changes and implementation of environmental regulations have a significant impact on the sand and gravel industry. Higher environmental standards may lead to an increase in production costs, which has an impact on prices.
Economic performance: The demand for construction and infrastructure is critically affected by macroeconomic conditions. During periods of economic prosperity, construction activities increase, leading to an increase in demand, and therefore prices of sand and gravel may rise, while during economic downturns, demand falls and prices of sand and gravel may decline as well.
Competitive market: Competition also affects the prices of sand and gravel. If the market is competitive with multiple suppliers, prices of sand and gravel may remain stable or decrease. On the contrary, if there are fewer suppliers or monopolists, the prices may rise.
In summary, the prices of sand and gravel are influenced by multiple factors. These factors interact with each other, leading to price fluctuations. Sand and gravel enterprises can adjust their production and operation appropriately according to the local market situation to maintain stable development.
