Industry Analysis

Cement Industry 2017H1: No Obvious Change in Demand and Output

Yuwenhao, ,

Cement output has undergone great fluctuation in recent years and it gradually becomes stable now. Cement output kept growing at -5% or so in 2015 YOY but the growth rate rose to 2%-4% in 2016. In the first half of this year, cement output only fluctuated by 1%. From January to June, domestic cement output added up to 1.11 billion tons, up by 0.4% YOY. The stable cement output indicates that the domestic demand has entered a high platform stage and it is estimated that cement output in this year will show no obvious change compared to that in the last year.

In the first half year, cement output in East China was 366 million tons, the highest one in China, and was followed by Middle-of-south and South West. Cement output in Northwest, North and Northeast China is relatively small, and that in Northeast China was only 38.14 million tons. Cement output in East and Southwest China represented fast YOY growth rate. Growth rate in East China reached 3.39%, the highest one in China. Cement output in Northwest, North and Northeast China represented negative YOY growth rate. Output in Northeast China grew at a rate lower than -14% and that in North China grew at -13% YOY. Comparatively speaking, cement output in Northwest China decreased slightly but almost remained unchanged.

Cement output in 17 provinces, cities and autonomous regions decreased YOY in the first half year while the rest 14 regions showed different increase, which is contrary to that of the last year, and this can be explained by the production control in Northwest, North and Northeast China. Cement output in Ningxia and Tibet showed fast YOY growth rate, which was 24.7% and 23.1% respectively. Meanwhile, cement output in Beijing declined most, at a YOY growth rate of -32.6%. Apart from that, output in Inner Mongolia, Tianjin, Hebei and Gansu decreased by over 10% YOY.

 

Reference:

Research Report on China Cement Industry, 2017-2021

China’s gross output volume of cement has been the largest globally for many years. In 2016, the output volume of cement was about 2,403 million tons in China, up by 2.3% YOY.