Cement demand in China is likely to improve sequentially in the coming six months with the speeding up of infrastructure construction and more policy support, says Citi.
Cement demand in China had declined 5.3 per cent YoY in 1H 2015 on slow infrastructure investments and weak property new starts, leading to an 18 per cent drop in the cement price year-to-date.
Citi forecasts demand will only decline three per cent for the full year in 2015 and grow 1.8 per cent in 2016. The house upgrades BBMG Corp rating to buy with target of HK$8.10 (from HK$7.20 previously) on improving cement supply-demand in Beijing-Tianjin-Hebei area and strong property profit in 2016. (Source: Dow Jones Newswires)