China’s cement output in the first half of the year hit a record high for a six-month period, up 20.9 per cent from the same period last year to 540Mt, the Xinhua-run China Securities Journal reported Friday. The newspaper also quoted statistics from the China Cement Association, saying the output had exceeded 100Mt each month from April to June.
An increasing number of construction projects in the country boosted output. China’s total investment in roads, factory equipment and other fixed assets soared 29.8 per cent in the first half of the year, an increase of 4.4 per cent from the same period of last year.
Eight of China’s 4982 cement producers saw their output exceed 2Mt, and their total output grew 45.7 per cent to 28.74Mt. Some 47 companies whose half-year output was between 1 and 2Mt totaled 79.43Mt, up 40.2 per cent.
Economists worry the government’s policy of curbing soaring fixed asset investment will cause a decline in demand and overcapacity in the industry. In April, the National Development and Reform Commission, together with seven other government departments issued a circular urging local governments to restructure cement plants plagued by overcapacity and pollution problems. The commission said in a report on April 24 that it will speed up the elimination of cement production plants that are small and use outdated technology.