China's cement production declined 10.2 per cent YoY to 1,131Mt in the first nine months of 2026, marking the lowest output for the corresponding period in 18 years, according to Digital Cement Network.

The decline reflects continued weakness in the country's real estate sector, subdued infrastructure investment and persistent overcapacity in the cement industry.

All six major regions reported falling cement production, with eastern, northeastern and northwestern China recording double-digit reductions. Only Beijing, Guizhou and Yunnan reported YoY production growth among China's 31 provincial-level regions.

Cement prices remain under pressure
The national average cement price fell by 12 per cent YoY to CNY328/t during January-September 2026, down CNY44/t from the previous year.

Prices reached their lowest levels in the third quarter, averaging CNY316/t, as weak demand, high inventories and intense competition continued to weigh on the market.

Meanwhile, rising coal prices increased cement production costs by approximately CNY30-40/t towards the end of the third quarter, further squeezing producers' margins.

The combination of falling prices and increasing costs resulted in widespread losses across the industry, estimated at approximately CNY7bn (US$1bn) during the first nine months of the year.

Exports increase sharply
Meanwhile, China's cement and clinker exports increased by 181.6 per cent YoY to 20.96Mt in the first nine months of 2026, reaching an 18-year high for the period.

Cement exports rose by 40 per cent to 6.29Mt, while clinker shipments surged by 398 per cent to 14.67Mt.

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However, average export prices declined. Cement FOB prices fell by US$4.50/t to US$46.20/t, while clinker FOB prices decreased by US$2.50/t to US$33.40/t.

Major export destinations included Bangladesh, Ghana, Côte d'Ivoire, Cameroon, the Philippines, Myanmar, Guinea and Togo.

Fourth quarter recovery expected
Cement prices began recovering in September and continued increasing during October, amid staggered production shutdowns, industry efforts to reduce aggressive price competition and as producers look to pass on higher production costs.

By 23 October, the national price of higher-grade cement had increased by CNY25/t, or eight per cent, from its early-September low to CNY336/t.

Digital Cement Network expects prices to remain stable or increase further during the fourth quarter as producers seek to restore profitability and production restrictions tighten supply.

However, continued weakness in construction demand and rising input costs will make a return to full-year profitability difficult.

Source: Digital Cement Network, the official information platform of the China Cement Association.