Anhui Conch says macro controls hit prices

Anhui Conch says macro controls hit prices
Published: 26 July 2004

Anhui Conch Cement Co. Ltd, the mainland’s largest cement maker, has blamed China’s economic cooling measures for a 20 per cent decline in its cement prices in May and June against the first quarter of this year, a pro-Beijing newspaper said on Monday. Anhui’s cement price fell 50 yuan to 230 yuan per tonne during May and June, about 20 per cent down on prices in the first quarter, the Wen Wei Po said quoting a company executive. However, he expected a rebound in the fourth quarter.

The executive said as a result of the economy measures, which included stricter controls on investment spending in sectors such as property, steel and cement, some new projects had yet to receive government approval.  However, the company still expects a 10 percent year on year increase in its average cement price to 244 yuan/tonne from 222 yuan. The firm has maintained its full-year sales target of 40 million tonnes, it said.  Anhui Conch said in early July that it expects its first-half net profit to more than triple, based on Chinese accounting standards.