China’s cement producers are higher on hopes for strong demand after the government speeds up the construction of social public housing in the second half, say analysts. The State Council said Thursday that China had began construction on more than 50% of the 10 million public housing units it has pledged to build this year as of the end of June. The reading is up from 30% as of May.
"The sector may still have some upside due to expectations of strong 1H earnings growth," says Huatai Securities analyst Zhou Lin, who adds that the government’s commitment to slash obsolete cement output capacity also lends support to cement prices.
