Figures released by the China Cement Association and reported by The China Perspective show that Chinese cement production continues to grow in the southwest and northwest of the country, increasing at rates of 14.6% and 15.4% respectively in the first 8 months of the year. Production continued to decline in the northeast, however, and remained stable y/y in the north. In August 2013, the top three provinces by output were Jiangsu, up 5.4% at 15.28 million t, Shandong, also up 5.4% at 14.49 million t and Henan, up 8.3% at 13.94 million t. In all, the country produced 1.52 billion t of cement in the January – August period and 888 million t of clinker, a year-on-year increase of 9.2% and 5.2% respectively.
The average price rose by 3 yuan from July to August and averaged 321 yuan/t across the country. In particular, high clinker prices and buoyant demand drove price hikes in eastern and southern China. The industry’s profit rose 9% y/y to 28.37 yuan in the January – July period, with eastern, mid-southern and southwestern regions making the most significant contribution, each with profit margins above 6%. Revenue in the first 7 months reached a total 510.6 billion yuan, up 6.6% y/y.
Chinese cement and clinker exports rose 22.2% and 38.6% respectively in August 2013 compared with August 2012, though prices were lower. Both profits and profit margins in 1H13 are expected to exceed 1H12.
Adapted from report by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/14102013/china_cement_output_profit_exports_rise_august_2013_288/