China Cement Industry

July, 28, 2016, Mumbai, India: Market Reports on China presents the report, on “China Cement Industry Overview, 2011-2020”. Chinese economic structure is experiencing an ongoing adjustment, which leads to certain challenges faced by the cement industry.

Cement is an important building material, of which the quantity demanded is closely related to the construction industry situation. The demand for cement rises with the development of the construction industry, which enhances the price of cement and vice versa. The gross output value of China construction industry was up to CNY 18, 075.7 billion in 2015, increased by 2.3% YOY. The construction area of buildings was 12.43 billion square meters nationwide, declined by 0.6% YOY. Chinese economic structure is experiencing an ongoing adjustment, which leads to certain challenges faced by the cement industry.

Chinese cement industry enters the golden period of rapid development after the reform and opening-up. The annual output volume of cement increased from 150 million tons in 1985 to 2, 359 million tons in 2015, of which the total output volume ranked the first in the world. The annual average consumption of cement per capita increased from less than 140 kilograms to about 1.7 tons during the same period.

In terms of products consumption structure, cement is mainly used in infrastructure building of houses and roads. The absolute gross output value of China construction industry increased during 2011 to 2015 while the growth rate was experiencing an overall declining trend. The construction industry increased by 2.29% YOY in 2015 compared to 2014 by gross output value, tumbling through the growth rate of over 10%. The demand for cement will be reduced by the declined market of China real estate and the decreased new-built real estate projects. The output volume of cement was 2,307.8610 million tons in 2015, decreased by 5.68% YOY.

The barriers to entry of cement industry are relatively high in China....