China’s cautious confidence

Published 04 March 2020

With most provinces reporting a growth in cement output, Chinese cement companies enjoyed a bountiful year in 2019, supported by stronger peak-season demand and stable, high prices. For 2020 industry sentiment is one of cautious confidence despite a forecast indicating that demand will slip slightly. Furthermore, the current coronavirus outbreak is also expected to affect cement demand in the first half of the year. By Fei Chen and Bailin Chen, China Cement Association, China.

Improving cement consumption during China’s peak construction season

saw the country’s cement output rise at the fastest rate in five years

In 2019 Chinese cement production was 2.33bnt, according to the State Statistics Bureau. This represents a 6.1 per cent YoY increase, the fastest growth rate in five years (see Figure 1). Chinese clinker output reached an historic record of 1.52bnt. The highest growth of cement production appeared in the northeast (+13 per cent) and the east (+9.4 per cent). Cement output and transportation in the northeast was driven by higher prices in the south, while strong local demand was the major driver for increasing production in the east. Market demand varied from region to region. While 26 of 31 provinces saw positive growth, this was not the case for Beijing, Hainan, Henan, Guizhou and Qinghai. Market demand scored double-digit growth in Jilin, Tibet, Gansu, Shandong, Liaoning, Shanxi, Jiangsu and Anhui.

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