Asia Cement to benefit from rising China prices

Asia Cement to benefit from rising China prices
Published: 25 May 2011

UBS Securities said Tuesday that rising product prices in China are expected to boost the bottom line of Asia Cement Corp., one of Taiwan’s leading cement producers.



According to UBS, cement prices in Sichuan Province, where Asia Cement has production facilities, rose eight per cent in April from March on an improving pricing discipline and expectations of a power shortage from June.



The price hike in April came after a 13 per cent rise in the average selling price enjoyed by Asia Cement in Sichuan for the first quarter of this year, a rise that was higher than a previous estimate of 10 per cent made by UBS.



"The cement price continued to rise in April and the upward trend looks highly likely to be supported by reduced cement supply due to electricity shortages," the brokerage said in a research note.