This year, cement demand or up to 2.1 billion tons of water conservancy construction will be the next feast

According to Kong Xiangzhong, secretary-general of the China Cement Association, demand for the cement market this year will remain strong, “possibly close to 2.1 billion tons”.

Kong Xiangzhong analyzed that from the perspective of investment in 2011, the new loan quota was basically the same as that in 2010, and investment projects still focused on transportation, key projects, and urban construction, which meant that there was no change in demand for the cement market this year. . Moreover, as the year in which the “Twelfth Five-Year Plan” begins, local governments will continue to develop local economies and plan or invest in new plans. New construction investment will inevitably drive demand for cement products.

It is worth noting that the key investment in water projects mentioned in the Central Document No. 1 of 2011 will be a new highlight of the cement market. "The drought this winter has confirmed the urgency and importance of water conservancy construction."

Kong Xiangzhong pointed out in particular that in the next decade, the government will invest about 4 trillion yuan in water conservancy construction, and the annual investment will reach 400 billion yuan, a figure that has doubled from 2010. “The demand for cement for water conservancy construction will reach a peak within 2-3 years.” Kong Xiangzhong further analyzed that the new production capacity brought by the historic production of new line numbers in 2010 had little impact on the market this year. According to the data, in 2010, 203 new dry process cement production lines were put into operation, and the new cement production capacity was approximately 370 million tons. According to the regular statistics, 30% of the production capacity has been put into operation in 2010, namely, 259 million tons of new dry process cement production capacity in 2011. "If we can continue to maintain the elimination of backward cement capacity of 100 million tons in 2011, then this year's net increase in production capacity will be 200 million tons (consider some new production capacity in 2011), and the total annual growth rate will be about 10%, compared with 13% in 2010. The growth rate is still low," Kong Xiangzhong pointed out.

However, the unreasonable layout of the entire cement industry still exists. For local regions, if the elimination of backward production capacity is slow and the regional cement market lacks industry-leading large companies, fierce market competition will be inevitable. “The structural adjustment of the “12th Five-Year Plan” for the cement industry is focused on mergers and reorganizations.” Kong Xiangzhong pointed out that the total capacity of the top 10 large-scale enterprises will account for more than 40% of the national total, and the profitability of large companies will also be further enhanced. At the same time, energy conservation and emission reduction in the cement industry will continue to advance.

According to Kong Xiangzhong, apart from the application of key technologies such as waste heat power generation and energy-saving grinding, the use of cement kilns to dispose of municipal waste, sludge, solid waste, and hazardous waste will also receive strong support from the government; cement industry The chain will also be further extended, which not only reduces costs, improves the environment, but also helps improve the competitiveness of the entire industry.

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