China’s cement industry continued to grow in April with cement prices rising over the previous month and same period of last year.
Experts attribute the rebounding of the industry to the following reasons:
1. The seasonal demand for cement has increased steadily with the monthly inventory rate dropping to 22 per cent. The cement price kept rising in April.
2. The Chinese government’s policy of supporting the construction of infrastructure and rural areas has boosted demand for cement.
In the coming two to three years, the growth of investment in fixed assets is expected to rise 20-25 per cent. Investment in the cement sector in the first quarter surged 39.38 per cent year-on-year.
3. The Chinese government has eliminated outdated production capacity, which has encouraged investment in the cement sector.
It is predicted that China’s top 10 cement enterprises will produce 30 per cent of total cement by 2010, and the top 50 cement enterprises, 50 per cent.