Analysts said Thursday that Chinese cement and building-material firms are seeing a broad recovery in demand and have forecast cement prices to rise throughout the year, as warmer weather helps kick-start stalled activity.
Broking-house UOBKayHian said that management of Anhui Conch Cement Co both issued an upbeat assessment of the market outlook this year, bolstering the view that demand firmed during in the January–February period.
UOB said rising construction activities after the Chinese New Year were cited by management at Anhui Conch among reasons for its forecast for a 15% rise in sales volume this year.
It also said China National Construction Material’s management was seeing stronger demand as a factor in higher cement prices from April.
UOB on Thursday upgraded its view on Anhui Conch to buy from hold, and reiterated its recommendation for investors to buy shares of China National Construction Material.