Taiwan Cement welcomes Chinese cement industry consolidation

Bygyh

Updated Thu, 18 Apr 2013 00:00:00 GMT

Taiwan: Taiwan Cement has said that leading Taiwanese cement makers will benefit from industry consolidation in China because it will boost prices. Due to the mergers, Taiwan Cement's clients in China are no longer demanding the price reductions they did in 2012 said Robert Chen, deputy spokesman of Taiwan Cement, to the Taipei Times.

Average cement prices in eastern and south-western China have risen recently, while prices have stopped declining in the south, said Chen. In addition, cement demand in China's rural areas has increased after the Lunar New Year holiday.

Asia Cement Corp said the problem of oversupply is easing after the Chinese government asked companies to close down inefficient kilns. The cement market in China was severely hit when the Chinese government decided to curb rising house prices, according to an official at Asia Cement. However, the official said that cement prices in China only recovered to the levels of 2011, when the Chinese government decided to open up the cement market and increase the number of suppliers.