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Research and Markets releases report on China’s cement industry

Published by , Assistant Editor
World Cement,

According to Research and Market’s ‘Research Report on China's Cement Industry, 2017-2021’, the fixed asset investment in China in 2016 reached CNY 59 650.10 billion, up by 8.1% year on year. The gross output value of the construction industry in the country reached CNY19 356.70 billion, up by 7.1% year on year. The housing construction area was 7589.75 million m2, up by 3.2% year on year.

The report indicates that demand for cement rises with the development of the construction industry, which drives the cement price. This means that the cement industry in China developed rapidly following China’s reform and opening up. From 1986 to 2016, the annual output of cement in China increased from 166 million t, to 2403 million t, and the CAGR in this period reached 9.3%. China’s gross output volume of cement has been the largest globally for many years. In 2016, the output volume of cement was about 2403 million t in China, up by 2.3% year on year. The growth rate of China’s economy slightly decreased in recent years, but it still remained the world’s first. This means that demand for cement remains huge.

The barriers to entry in China’s cement industry are relatively high. The cement product is featured with energy dependence, high transportation costs and limited sales radius, which determines the characteristics of China’s cement production industry being highly fragmented and having numerous enterprises. According to this report, by the end of 2015, the total number of cement producers was over 3000 in China. The cement industry is featured with a low market concentration rate and intense market competition in China.

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