BofAML says China cement industry trends turned positive

Chinese cement stocks have rebounded 20 per cent since early September, and Bank of AmericaMerrill Lynch believes the industry outlook tends to turn positive as new production capacity is expected to plunge starting from 2013.

The demand for and production capacity of cement are set to be more balanced after excessive production capacity in the third quarter. Moreover, cement demand will recover moderately along with the improvement in property sales. (Source: AA Stocks Financial News).