The Ups and Downs of China Cement Industry

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CementInsight of china’s cement industry
China, also known as People’s Republic of China, located in East Asia is the second largest country in the world with a land mass of 9.6 million square kilometer and the most populous one with a population figure of 1.35 billion. It is also one of the ancient civilizations whose roots date back thousands of years in history. The communist market economy of China is also the world’s second largest economy as per the GDP growth and purchasing power evenness. It is also one of the fastest growing economies after United States of America. As a constant growing economy, the industries in China have its part of share as well.

In the early years, before 1976, there were several restriction imposed on everyday activities and similarly on economic patterns. As result, there was stagnancy in both economical and industrial output. After that, the country’s economy saw a major turnaround with China’s fifth revised 5 year plan. Main breakthrough came from the 1980’s with its industrial development till 2010 when it emerged as an industrial superpower. In regards to the cement industry the most rapid growth has been since the year 2000. The Chinese cement industry has been the largest in the world for the past 20 years. From 2010 it has totted up even more dry process lines at the cost of wet process and vertical shaft kilns. According to its National Bureau of Statistics, the report reveals that cement industry’s production has increased by 10.8% year on year to 237 Metric ton in January and February. The claims are that total cement manufacture of the country was close to 2.2 billion ton in 2012. With total global cement production of 3.6 Billion ton in 2012, this means that officially, China contributes to 60% of all cement production in the world. The cement exported by China mainly goes to the East Asian countries, Africa and the Middle East which is around 16.55 metric ton. Anhui Conch, Asia Cement (China) Holdings, Huaxin Cement Co Ltd and Tangshan Jidong Cement are some of the companies in the china cement manufacturing industry.

In spite of ever increasing cement production capacity, the china cement industry has witnessed a steep slide in the collective financial results of 2012. This was mainly caused by rising fuel and labour cost, overcapacity, stringent environmental regulation and guidelines and several other factors. As a result most of the cement industries suffered a steep revenue loss of 0.93% to a colossal figure of 51.3% amounting almost more than 5 billion dollars. China has targeted an annual economic growth of 7.5% for the current year, which officials and economic experts have said is achievable, though it would be the slowest growth in 23 years. Therefore it can be summarized that regardless of the expanding economy the cement manufacturers are facing a tough time to get a strong foothold.