Albany, NY -- (SBWIRE) -- 06/10/2014 -- ResearchMoz.us include new market research report "Research Report on Cement Industry in China, 2014-2018" to its huge collection of research reports.
Cement industry is a basic raw material industry that is necessary for economic development, production and construction. The scale of cement industry reaches a high level as economy develops in China. In the 21st century, Chinese cement industry makes breakthrough in advanced technology and the intensive production of advanced equipment, which represents the rapid growth of Chinese economy.
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Uneven development of regional economies leads to uneven distribution and development of cement industry in China. The 3 major regions of cement industry are the Pearl River Delta represented by Guangdong, Yangtze River Delta represented by Shanghai, Zhejiang and Jiangsu, and Bohai Rim area represented by Beijing, Tianjin, Hebei and Shandong.
The production volume of cement was 2,414.4 million tons, up by 10.5% YOY in China in 2013. Chinese cement market keeps fluctuating in recent years. To reach the indices of energy conservation and emission reduction, Chinese government cut off power to restrict consumption at the end of 2010. Consequently, the demand of cement remarkably exceeded supply while the price hit a historical high in boom season. In 2011, enterprises of the industry reached the consensus to make profits through controlling the production capacity as the undertaking prices were high. However, the price of cement declined in the second half of the year due to increase in production capacity. The price continued to fall in 2012 and increased slightly at the end of the year. In 2013, although it was lower than that at the end of 2010, the market price of cement increased beyond expectation as the price of coal decreased.
New-type urbanization will stimulate the demand for cement, which is a great opportunity for cement industry. Urbanization will last for a long time due to low development degree, large development space and policy keynote in China. Cement industry will continue to benefit from the urbanization in China in 2014.
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It is estimated that 13 million people will move to cities if the degree of urbanization increases by 1%. The new area of residence will be 390 million square meters if the area per capita is 30 square meters. The demand for cement will be 78 million tons if the demand for cement per square meter is 0.2 ton. The actual demand may exceed 100 million tons with auxiliary infrastructure included. If the degree of urbanization increases from 53.7% in 2013 to 65% in 2020 and 150 million people move to cities, the demand for cement will exceed 1 billion tons during construction of urban residence and auxiliary infrastructure in China in 2014-2020.
The growth rate of investment in infrastructure is expected to decline slightly due to the high investment, debt and financing issues of local governments. In 2014, the growth rate of investment in real estate will decrease due to the uncertainty of regulation policies and the high base number though the amount of sales and new construction was high in 2013. Generally, the demand for cement will be supported by new construction projects in 2013 and 2014, reconstruction of shanty towns in real estate industry, construction of social housing and new-type urbanization. Meanwhile, the amount of investment may exceed expectation.
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Therefore, the climate indices of cement industry are expected to increase in China in 2014-2015. As the restructuring of cement industrial technologies is completed in China, the proportion of new dry process cement production capacity exceeded 95% while the production lines with daily production exceeding 5,000 tons accounted for 60% of the new dry process cement production lines by the end of 2013. Modern technologies and large-scale production increased the labor productivity and profits, which promoted the development of cement industry.
While China is going through economic transition, many opportunities exist in cement industry as industrialization, informatization, new-type urbanization and agriculture modernization gain further development.
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