With the world’s second largest and fastest growing economy, China’s construction and development is expected to continue to skyrocket this year. Reports from the China Cement Association (CCA) confirm this, predicting strong cement demand for the remainder of the year.
The CCA, in a mid-February report, said the country’s demand for cement may climb 12% YoY to nearly 2.1bnt in 2011. The association pointed to the Chinese government’s heightened financial investment in water projects as a new and powerful impetus for the cement consumption. Earlier this year, the Chinese government announced intentions to double its annual investment in water projects to CNY4trn over the next decade.
Though not mentioned by the CCA, cement consumption is also rising as a result of the shift toward metropolitan areas and the resultant construction projects. China is experiencing unprecedented urbanisation with hundreds of millions of people migrating to the country’s major cities. To cope with the colossal population influx, a city like Beijing may need to invest as much as US$3.6trn in urban infrastructure by 2020, according to state media. With that, comes demand for cement and other raw materials.
China produced 1.87bnt of cement in 2010, up 15.5% compared from 2009. The output of cement clinker grew 10.4%YoY to 1.15bnt. In December 2010, output reached 169,662,000t of cement. The production in January-December reached 1,867,957,000t, up 15.3% YoY, according to the National Bureau of Statistics.