Fujian Cement is producing at full loading as prices of cement have risen sharply, driven by the commencement of numerous infrastructure construction projects.
The sharp price rise of cement in Fujian is the single biggest incentive behind surged production. Constrained production capacity of cement in neighboring provinces for environmental reasons is the other factor driving the demand and price of Fujian cement up.
A manager at Fujian Cement says the price of cement jumped RMB30 a ton in just a week. Numerous infrastructure construction projects promulgated by the Fujian provincial government, especially the "Key projects to start in 150 days" activities have instantly lifted the demand for cement which is expected to prevail as construction projects will not be completed in a short period of time.