China’s cement industry is expected to reap in a record high profit of CNY20bn in 2007, with CNY12.3bn of profit in the first eight months, said Lu Guixin with Bureau of Economic Operations under National Development and Reform Commission (NDRC).
National cement industry has reported a sales revenue of CNY328.7bn during the January-October, up 23.1 per cent YoY and annual sales revenue is expected to top CNY350bn in 2007, Lu said at the Sixth meeting of China Cement Association members.
By end of October, China has produced 1.105bn tons of cement, a YoY increase of 14.2 per cent. Annual cement output is expected to reach 1.35bn tons, 55 per cent of which will be produced through dry-process technology.
While the cumulative investment in the cement industry posted 46 per cent growth over last year within January-October, annual fixed-assets investment is expected to reach CNY54bn.
Increased profitability partly comes from the upbeat prices of cement, especially in large and medium cities.
During November, cement prices in Haikou, Changsha, Nanchang, Zhengzhou and Urumqi recorded increases of 42.9 per cent, 27.8 per cent, 27 per cent, 13.2 per cent, and 12.5 per cent respectively.