China Purchasing Managers’ Index increased to 50.8 in May 2014, up from 50.4 in April. This represents the highest rate of growth thus far in 2014. The figure has been interpreted as a sign that the Chinese economy is stabilising and that momentum is beginning to pick up.
However, the country’s housing market has been cited as a cause for concern by local press as real estate prices and sales begin to weaken amid speculative fears of a property market crash. The housing sector’s performance is likely to have a knock-on effect on the cement industry. In the first four months of 2014, cement output increased by 4.3% y/y to 672 million t, representing a slowdown in growth.
According to reports, a national carbon market – the biggest in the world – could be in place in China by 2018, subsequent to the completion of the seven pilot schemes currently ongoing.
Business Secretary Vince Cable has announced that buildings in China could be built to British green construction standards, which would boost the UK supply chain by £200 million.
Eurocement has signed a number of contracts with the Sinoma, CNBM and Sinomach Groups for the supply of equipment to new cement plants in various regions of Russia.