XIAN UNIVERSITY OF ARCHITECTURE & TECHNOLOGY

The development of the Chinese cement industry in 2013 and 2014

1 Yearly growth rate of fixed assets investment of the whole society and cement production

Note: The yearly growth rate of fixed assets investment of the whole society is the actual growth rate excluding variable factors of price

2 Sum of fixed assets investment above norm in the cement manufacturing industry

Note: The statistic scope of fixed assets investment in the cement manufacturing industry before 2011 was the investment projects in which the towns planned to put a total investment of 500 thousand yuan or more. The statistic scope in and after 2011 was expanded to rural enterprises and institutions outside the towns (exclusive of peasant households), and the statistic starting point of investment projects was increased to 5 million yuan or more (In RMB Yuan)

3 Increased capacity of clinker and cement in past years

Note: The increased capacity contains a little amount of capacity of recovering production after stop production

4 Reduced capacity of clinker and cement in past years

Note: The reduced capacity contains a little amount of capacity of recovering production after stop production

5 Net increment of cement clinker capacity in the past years

6 Net increment of cement capacity in the past years

7 Cement clinker capacity at the end of the year in the past years

8 Cement capacity at the end of the year in the past years

9 Availability of clinker capacity in the past years

10 Availability of cement capacity in the past years

11 Composition of daily production scales of new dry process production lines actually in operation in 2002

(T = tons, L = lines)

12 Composition of daily production scales of new dry process production lines actually in operation in 2012

(T = tons, L = lines)

13 Composition of daily production scales of new dry process production lines actually in operation in the past

14 Composition of daily production scales of new dry process production lines actually in operation at the end of the year

15 Quantitative distribution of cement grinding enterprises in 2013

16 Proportion composition of yearly productivity of cement grinding enterprises in 2013

17 Scale composition of enterprises and enterprise groups in 2007.

Enterprises and enterprise groups of yearly production scale over 10 million tons: Sinoma

China Building Materials (CNBM), Jidong Cement, Zhejiang Sanshi, Hongshi Holdings, Conch Group, Shandong Shanshui, Tianrui Group, Huaxin Cement, Huarun Cement, Lafarge Shui On

18 Scale composition of enterprises and enterprise groups in 2013

Enterprises and enterprise groups of yearly production scale over 10 million tons: Sinoma, BBMG Group,

CNBM, Quzhai Cement, Jidong Cement, Mengxi High-Tech, Yatai Group, Yadong Cement, East Hope, Jiangsu Jinfeng, Zhejiang Shangfeng, Hongshi Group, Shengwei Group, Conch Group, Fujian Cement, Wannianqing, Sunnsy Group, Tianrui Cement, Henan Tongli, Huaxin Cement, Gezhou Dam, Guangdong Tapai, Hainan Huasheng

Lafarge Shui On, Esheng Cement, Kunming Steel Jiahua

Shanxi Yaobai, QSCC, Taini Mainland, Huarun Cement

20 The enterprises and enterprise groups with yearly production scale of over 10 million tons in 2013. Average daily production scale for cement clinker capacity of new dry process production lines

19 China Top 10 large cement groups in 2013

Fig. 21 Composition of national population in towns and villages

21 Composition of national population in towns and villages

Fig. 21 Composition of national population in towns and villages

Fig. 22 Composition of national fixed assets investment (exclusive of rural household)

22 Composition of national fixed assets investment

(exclusive of rural households)

Fig. 22 Composition of national fixed assets investment (exclusive of rural household)

Fig. 23 Composition of national fixed assets investment industries

23 Composition of national fixed assets investment industries

Fig. 23 Composition of national fixed assets investment industries

24 Comparison of growth rates of main industries in which national fixed assets are invested

In China, the national cement output grew at 9 %, reaching more than 2.4 billion tons in 2013. However, the growth rate of cement capacity began to slow. The output in 2014 is estimated to be nearly 2.6 billion tons, with a growth rate between 6 % and 8 %. The proportion of large new dry process production line capacity is more than 60 %, with a cement production integration degree of more than 70 %. The growth of cement output is beginning to reach its peak.

1 Introduction

According to preliminary statistics, China’s cement output will be more than 2.4 billion tons and account for over 60 % of the global cement in 2013. Such high output induces concerns and questions as to whether China’s cement production is near its peak limit or whether there will be a marked decline. This article provides a comprehensive introduction of the development history during the past few years, current development status, and expectations for the next few years with regards to China’s cement industry.

In recent years, a serious overcapacity has occurred in China’s...