Focus Taiwan has reported that Taiwan Cement Corp. expects increased demand in China, thereby allowing for full utilisation of its China-based production facilities. A combination of factors will contribute to this increase in demand. In the short-term, construction work tends to pick up in March as workers return from the New Year holiday. The Chinese government is also investing in more infrastructure projects, which are due to begin later this year.
Meanwhile, according to South China Morning Post, the Vice Chairman of China Resources Cement has stated that oversupply is unlikely to be an issue on the Chinese mainland in 2013 as around 100 million t of obsolete cement production capacity would be eliminated. Although 150 million t of new capacity is predicted to be added, the extra capacity would be offset by increasing demand. Together, growing demand and tighter cement supply could lead to higher cement prices, up to the tune of 13% by 2015.
Edited from various sources by Louise Fordham.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/13032013/cement_china_taiwan_capcity_demand_30/