Chinese producers counting profits

Chinese producers counting profits

Cement makers in China saw a resumption in profit growth last year thanks to a combination of improved construction activity, low production costs due to weak coal prices and the government's push to close some inefficient producers. China produced 908.5Mt of cement in the first five months of this year, up 4.1 per cent from a year earlier, official data showed.

Wannianqing Cement Co Ltd said it expected its profit to rise by as much as 100 per cent as average prices of its products rose, joining other Chinese cement firms with an upbeat view on the sector as infrastructure and real estate projects increase demand for building materials.

Anhui Conch Cement Co Ltd, Jiangxi Wannianqing Cement and Gansu Qilianshan Cement Group Co Ltd expect their first-half net profits to grow by 70-150 per cent, they said in separate statements this month. Anhui Conch predicts a 90 per cent rise in first-half net profit from CNY3.06bn (US$493.47m).

Fujian Cement Inc, based in China's southern province of Fujian, is forecast to turn profitable in the January-June period from a net loss of CNY79.5m a year earlier, it said this week.