How Cement Industry Get Rid of Weak Demand and Overcapacity Predicament

　　In the situation of economic slowdown, weak demand and overcapacity have been shrouded in the domestic cement industry. Since the second half of 2011, due to the substantial decline of the market demand, the price of the cement has continued to decline.

　　As we all know, along that with the increase or decline of the growth in the market demand, the investors will increase or reduces industrial fixed asset investment accordingly, while the cement market demand mainly comes from the infrastructure construction, real estate investment, and rural market. So, the current overcapacity in cement industry seriously restricts the development of the cement companies.

　　Hence, how China's cement enterprises break out of the weak demand and overcapacity predicament? Now that the overcapacity is the inevitable trend of the development in market economy, so, what the cement enterprises should take into consideration is how to adapt and take advantage of excess capacity and turn it into the capacity advantage by extending industrial chain and reducing cement production costs.

　　It is worth mentioning that under the control of the micro-economy policies, the efforts of China's infrastructure continue to increase, advancing to the sand aggregate industry has become a trend of cement enterprises extending the industrial chain,.

　　But it's not enough to only open source, throttling is also very important. It's necessary to integrate the industrial chain extending and operating costs reducing. Except for improving each management system, the cement enterprises should also start from reducing the operating costs and the loss of wear parts. Selecting excellent wear resistance parts can save a lot of money for cement enterprises.

　　China's cement enterprises should be based on themselves and industrial status, keeping up with the market pace, cutting expenditure and accelerating industrial transformation and upgrading in order to get rid of weak demand and overcapacity...