Chinese cement stocks advance on demand outlook
Anhui Conch Cement Co paced gains among Chinese cement makers on speculation demand for the building material will increase at the same time as energy curbs reduce production, driving up prices.
Anhui Conch, China’s biggest cement maker, advanced 5.8 percent to 24.64 yuan at the 3 p.m. close in Shanghai trading, the biggest gain since Aug. 30. Gansu Qilianshan Cement Group Co. climbed 4.1 percent to 17.28 yuan, while Tangshan Jidong Cement Co. surged 8.4 percent to 21.07 yuan in Shenzhen. The Shanghai Composite Index rose 1.3 percent.
Cement prices in eastern China have risen more than 40 percent since August as local governments limited electricity supply to manufacturers to meet energy reduction targets, Luo Guo, an analyst at Orient Securities Co., wrote in a report dated yesterday.
“Fundamentals for the cement industry are still strong as the government will step up construction of public housing in its next five-year plan,” Luo said in a telephone interview today. He has an “overweight” rating on the cement industry.
Published under Cement News
