Cement price goes down, how structure adjustment going on?


Updated Thu, 15 Jul 2004 00:00:00 GMT

Cement price goes down in China.Presently except in east-north region,in Zhangjiang delta, Zhujiang delta, cement price decreases.Investigation in Guangdong shows,in the last ten days of April, Poland cement price decreased 5%.
Liuzuoyi, Chinese Cement Association member, said, many small cement factories stopped producing, most cement projects are in dilemma. See in short term, cement demand is controlled by nation’s adjusting, see in long term, cement supply is confined and cement projects are stopped for limited loan. Some people are afraid that the result of macro-control is not good as anticipated. It is said that cement companies increased three times in last year. In this April, investing in cement industry is 11.6 billion Yuan, increased 79%. 
In order to gain more benefit, some contractors try their best to do financing or raise money personally, these all conflict with macro-control.
   Price not drop great 
In the future, in cement industry, supply over demand and capacity separating from demand, if all these happen, cement price would go down.
For example, in Beijing, in April cement price was 300 Yuan per ton, dropped by 5%.In last Sep and Oct, cement price went up all over the country, but after several months, it dropped again. The reason, Mr. Liu said, cement could not be reserved for long time, price fluctuates often. 
Opportunity for structure adjusting
The nation launches macro-control to prevent production over demand and excessive investing in cement industry. Macro-control also acts on structure unbalancing of cement industry.
Mr. Liu said, in recent years, for cement price high, many vertical kilns are still used to produce, result in bad quality, wasting resource and serious pollution.
Cement industry developing give a good opportunity for structure adjusting. In order to decrease product line cost, many enterprises use new dry process. It is a gold time to do structure adjusting.