Continued high growth in the cement industry. Earnings for the first half of this year growing faster than 100% include: Tower Group, nest in the East, and the qilian mountains, can achieve a positive growth of enterprises as conch cement, cement, huaxin cement, bbmg, Jiangxi. The other hand, the performance loss include: jidong cement (loss), tianshan shares (loss), pine constructs (loss). High growth was mainly concentrated in East China in the South China region, because cement prices basic high-stacked shipments last year, tons of cement earnings significantly rebounded in January-June, P.O42.5 cement price to 357 Yuan per ton, an increase of 25 Yuan/ton, of which East China regional high off-season price stability in the first quarter, P.O42.5 price for 373 Yuan/ton, ultra-44 Yuan per ton in the same period.
2014 1 June the national cumulative cement output of 1.14 billion tons, an increase of 3.6%, 6.1% below the same period last year, demand growth declined significantly influence mainly by the real estate slowdown. Supply side 1-6 month production clinker production capacity of 31 million tons is expected in 2014-2015, the new capacity 0.7, 30 million tons of clinker, show a declining trend, supply and demand environment continues to improve, marginal demand continued to improve, largely because of the increased demand is greater than the new capacity.
1) East China markets stabilizing, steady growth of demand in infrastructure;
2) railway project, set to start in the near future, significantly boost cement demand in the West. Stacking Xinjiang policy released in Xinjiang as "Silk Road economic belt" core area, will be subject to the policy's full support, after you digest the new capacity supply and demand is expected to double this year improved;
3) integration of Beijing, Tianjin and Hebei in North China Hebei recent 1.2 trillion stimulus, and Beijing, Tianjin and Hebei's integration plan, or to be announced, improved regional supply and demand is expected to double, North China cement currently in the bottom of the earnings, profit is expected to improve.
4) recent Fujian Pingtan comprehensive experiment zone was closed operation, six major preferential policies for landing, full access to Central gives duty-free and bonded selective taxation, tax rebates, and special policies, Fujian cement and other businesses in the region.
Source: China's concrete network
