My conclusion of the development of cement
By 2010 there were 18 enterprises in China with more than 10Mta cement capacity. The CCA states that some 253 production lines started construction in 2011 and are scheduled to come online in 2011-12, adding 318.4Mta of clinker capacity. By end-2012, China’s total clinker capacity will be 1.574bnta and cement capacity will reach 2.581bnta, according to CCA estimates.
Credit Suisse expects cement production to grow at 3-4 per cent to meet national economic needs during the period of the 12th Five-Year Plan. This means that maximum market needs will reach 2.4-2.5bnt in the next 5-10 years, according to the CCA. In 2011, China produced 1.87bnt of cement reports the CCA, while clinker production rose to 1.15bnt. Seven provinces recorded cement output above 100Mta.
It had seemed that China was immune to the turmoil occurring in the rest of the world’s economies, but it too is starting to feel the effects of a slowdown from the extreme growth patterns it has generated in the last few years. It is paramount that the cement industry is ready for the adjustment, because when construction orders do fall off, cement orders will be next to suffer.
Government funding for infrastructure projects, social housing and water conservation are assured, but they are leading growth at a faster rate than is really required. In essence, by implementing its five-year, government plans to stimulate growth. The government’s strategy distorts the level of true demand and sets its own agenda. However, when housing demand is supplied more than twice-over, the industry has to react by decelerating construction for demand to catch up. As the professional manufacturer of complete sets of mining machinery, such as rotary dryers, Henan Hongxing is always doing the best in products and service. vibrating screen:http://www.hxjq-crusher.com/40.html
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A major question that the industry must face is how sustainable is the continued increase in domestic cement capacity? Even the MIT can see it is not sustainable and has put a cap on the amount of new capacity projects to bring them under greater control. Stricter regulations over emissions are also set to come in as the cement industry is reformed and outdated capacity is removed.
One also wonders how easy it will be for the top 10 producers to forward their plans for consolidation with a forecast slump in domestic construction in the not too distant future. Depending on how easy finance is to obtain through bank loans and share offerings, the path that Anhui Conch has taken to expand its cement production base overseas might well be an example that other leading Chinese producers could yet follow in greater numbers.
It will be intriguing to see what delegates attending the 13th China International cement Industry Exhibition and Conference in March will feel about the latest trends in the Chinese cement sector and if there are many solutions offered. We hope to see you there.
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