The price of cement in China has begun to rebound and is expected to move up further after March, thanks to favourable warm weather conditions for construction work.
Data from the National Bureau of Statistics (NBS) show that the nation’s total output of cement in February reached 82.9Mt, up 42.5 per cent YoY, and the cumulative production in the first two months came to 159Mt, up 17 per cent YoY, a significant increase compared with a decline of 8.3 per cent on year in January.
Hong Liang, an analyst with China Galaxy Securities Co., Ltd., said that in the short term, the favourable weather conditions will quickly bring a busy season for cement sales in the country, which is to support strong cement price.
In Hong’s view, the cement industry will enter into a rapid development stage in the next two years or so. With the improvement of industry concentration, cement price will continue to increase, and the cement producers’ profitability will also improve significantly.