To implementation of macro-economic control and delayed execution of some infrastructural projects, cement demand in China in the fourth quarter of this year has slowed. Taiwan Cement Corp. predicts China’s demand for cement will grow 7% to 8% in 2012, compared to double-digit growth in the past few years, and annual production capacity in China to total around 2.2 billion tons in 2012.
The China Cement Association predicts China will churn out 1.88 billion tons of cement in 2012, accounting for 56% of global output, with China’s cement production to reach 2.07 billion tons this year.
Taiwan Cement said China’s cement sector will see moderate recovery in the second quarter of 2012 after an off-peak season in the first quarter, believing sizable demand growth will be in the third quarter of 2012.
Despite the expected sagging cement market, Taiwan Cement still believes cement prices to remain stable in the first half of 2012 because several large cement producers will engage in annual repair and maintenance in the first quarter.
Institutional investors say Taiwan Cement will score 1.12 billion renminbi in after-tax earnings in the first three quarters of this year, with annual earnings to reach 1.4 billion renminbi in 2011.
Taiwan Cement said it will see annual production capacity reach 60 million tons in China in 2012, and will speed merger and acquisition to raise capacity, targeting to be a top-10 cement producer in China by 2016.
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