According to a report from global ratings agency Moody's, Chinese cement production has fallen from a peak in 2014 but will hold steady through 2020.
Roy Zhang, Vice President and Analyst at Moody's, has attributed the lower production volumes to the closure of inefficient and polluting facilities. The report states that another factor behind the decline is reduced winter production, spurred by the government's desire to reduce emissions.
Zhang was quoted as saying: "The lower production volume and steady demand support the price of cement. Such prices will help sustain producer margins."
According to the report, cement prices are expected to fall slightly during 2019 due to weaker demand from the property sector. However, this will largely be offset by increasing demand from the infrastructure sector.
China's Ministry of Industry and Information Technology reported that the country's cement output reached 2.18 billion t in 2018, down from 2.48 billion t in 2014.
Authorities have worked to curb the expansion of the cement industry over recent as part of a programme to reduce overcapacity in several sectors.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/29042019/chinas-cement-output-expected-to-hold-steady-through-2020/