China's Cement Output Drops 4.7% in First Three Quarters of 2015

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Researched by Industrial Info Resources China (Beijing, China)--China's cement production fell 4.7% to 1.72 billion metric tonnes in the first three quarters of 2015 from the same period in 2014, according to the National Development and Reform Commission (NDRC). Production in September alone was 217.64 million metric tons, a drop of 2.5% from September 2014.

Cement output dropped sharply in Shanghai, Beijing and Shanxi by 34.38%, 24.22% and 21.92%, respectively, while the output in Tibet, Guizhou and Chongqing rose 47.28%, 4.08% and 3.62%, respectively.

Regarding clinker output, only Tibet, Chongqing, Guangdong and Guangxi showed a positive growth; the output of other provinces (regions) continued to fall compared with the same period last year.

Commercial concrete output in China increased 2.5% to 1.16 billion cubic meters in the first nine months of 2015, but the growth rate was 10 percentage points lower than the same period last year.

The output of other building materials also showed a large drop during the first three quarters of this year. Output of flat glass dropped 7.5% to 574.5 million weight boxes, compared with growth of 3.8% a year earlier.

The price of cement has fallen slightly while flat glass has had a minor rebound. In September 2015, the average ex-work price of cement from key building material enterprises was $39.84 per metric ton, a drop of 33 cents per metric tonne from August, and a drop of $6.13 per metric tonne from September 2014. The average ex-work price for flat glass reached $8.65 per weight box in September, an increase of 17 cents over August, but a drop of 76 cents from September 2014.

Cement industry profits have taken a beating, falling 66% to $2.53 billion for the first eight months of this year in comparison with the same period last year. Profits in August 2015 alone were $155 million, a 33% drop from July and a reduction of 83% from the same month last year.

Although the Chinese government has approved several new projects in recent months, overall progress of construction has slowed considerably due to stringent implementation procedures. It is expected that overall demand will remain low for the near future.

Industrial Info tracks more than 10,200 operational plants and 14,100 active projects in China, with a total investment of more than $2 trillion. This includes more than 4,200 operational plants and 4,500 active projects with a total investment of more than $640 billion in the Metals & Minerals sectors.

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