DJ Anhui Conch: will government intervene to stop prices soaring?

DJ Anhui Conch: will government intervene to stop prices soaring?
Published: 03 June 2008

Cement prices in earthquake-affected areas in China will soar to CNY1000/t without government intervention to control prices, a senior executive at China’s largest cement maker by output said Tuesday.

The current price of cement in Sichuan province, where the May 12 earthquake was centred, is CNY600/t, compared with CNY300/t in areas not affected by the disaster, said Guo Jingbin, an executive director at Anhui Conch Cement Co.

Guo said strong demand for cement during the reconstruction period will attract supplies from other areas, pushing up prices generally unless the government intervenes.

Speaking on the sidelines of a news conference, Guo said the company’s profitability will increase because of the reconstruction work after the earthquake, but he didn’t elaborate. He said Anhui Conch Cement plans to invest CNY7bn in capacity expansion this year and invest more than CNY10bn annually in the next few years.

Guo said the company’s sales this year will be above 100Mt, up from 86.5Mt last year.

He said he sees the company’s production capacity doubling in the next three years.