China cement market begins to slowdown

It is reported that some priorities have already been made clear. According to China’s cement sector development, the fast-track capacity expansion is now being surpassed by the need for enhanced cement quality and efficiency. The government has initiated a restructuring plan, replacing outdated capacity with modern production facilities and encouraging top cement producers to carry out mergers and acquisitions (M&A) to consolidate the industry. New capacity is now restricted to around 250Mta.

More recently, China’s environment ministry is set to take the lead for emerging countries in curbing industry emissions by implementing stricter rules on cement plant NOx emissions. In February, Reuters reported that the move could wipe out a third of the industry’s total net profits as it would be expensive to introduce. China’s strategy had been to cut overall NOx emissions by 10 per cent by 2015. Local press now expects the ministry to reduce NOx emission allowances from 800 to 400g/m3.

In addition, seven provinces are to set carbon emission caps as a prelude to establishing carbon trading markets in China. The government is currently required to reduce CO2 emitted per unit of GDP by 17 per cent by 2015. This is the first time that the Chinese government has called for any absolute caps on emissions, having preferred softer “carbon intensity” targets.

Economic slowdown starts

The speed of China’s economic growth in recent years has been remarkable. However, recent times have seen a slowdown. The rise in China’s industrial enterprise profits as a percentage of GDP peaked in 2007. In addition, only certain sectors have been able to maintain a growth environment since 2009: banking, transport, metals and mining have remained vibrant. Although GDP is expected to continue its strong growth path as private sector demand for high-quality goods consolidates, a deceleration to single-digit figures is now becoming more marked. In addition, the IMF forecasts GDP expansion at nine per cent for 2012 and 9.5 per cent annually during 2013-16, but the Chinese government has lowered its sights to seven per cent annually over the next five years. As the professional manufacturer of complete sets of mining machinery, such as jaw crushers, Henan Hongxing is always doing the best in products and service. dryer machine:
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In term of Deloitte, monetary policy has seen China pump the equivalent of 50 per cent of GDP in the economy over 2008-10 through quantitative easing, which has kept the economy moving at a fast pace. This has now been bolstered by the 12th Five-Year Plan which came into effect in January 2011. It sets out a progressive way to achieve “inclusive growth” with more benefits filtering down to the greater proportion of Chinese citizens and gives more emphasis on agricultural sector growth. This means a shift in economic attention and development of the western provinces, and a greater focus on rural reform.

On all accounts, as the plan is all encompassing, it will also affect developments across the board – in energy, housing, transport, infrastructure as well as industries such as cement.

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