China’s cement industry has entered a plateau period and production capacity will shrink in the future

As one of the important building materials, cement has the characteristics of corrosion resistance, high temperature resistance, and earthquake resistance. It is widely used in emerging industries and engineering construction such as industrial construction, civil construction, transportation engineering, water conservancy engineering, seaport engineering, and national defense construction. Cement can usually be classified according to its uses and hydraulic substances. According to its uses, it can be divided into ordinary cement and special cement. According to its hydraulic substances, it can be divided into Portland cement, aluminate cement, sulfoaluminate and ferroaluminate. , fluoroaluminate, phosphate, etc. Among them, Portland cement is the most widely used type of cement.

According to the “2022-2027 China Cement Industry Market In-depth Research and Development Prospects Forecast Report” released by the Industrial Research Center, my country’s cement The development of the industry has entered a plateau period, and production capacity continues to shrink. At present, my country’s economic development is shifting from a high-speed growth stage to a high-quality growth stage. Unlike the previous high-speed economic growth period, cement companies with high energy consumption and high pollution are gradually being squeezed. With the implementation and promotion of national environmental protection policies such as energy conservation and emission reduction, comprehensive mine management, and peak-shifting production, the development of the cement industry has been restricted, and national cement production and exports have entered a plateau period at the same time.

In recent years, my country’s cement production has continued to decline. From 2013 to 2020, my country’s total annual cement demand has remained between 2.1 and 2.3 billion tons for eight consecutive years. According to data from the National Bureau of Statistics, China’s cement production at the end of December 2021 was 190.851 million tons. tons, a year-on-year decrease of 11.1%. In terms of cumulative production, China’s cumulative cement production from January to December 2021 reached 2.362812 million tons, a cumulative decrease of 1.2%.

my country’s overall cement production is still the first in the world, but the scale of exports is gradually shrinking. Judging from the cement production of various countries around the world in 2021, China has become the world’s largest cement producer with a production capacity share of 60.2%, followed by India with a share of 7.4%, and the United States with a share of 2.4%. According to official data from the General Administration of Customs of China, in December 2021, China’s cement and related cement clinker export volume was 150,000 tons, and the export value was US$148.2 million. The export volume and export value dropped by 56.0% and 36.3% respectively; The cumulative export value reached 181.3 million US dollars, and the cumulative export value decreased by 17.7%.

​Industry analystssaid that the Chinese market is huge, and the cement industry’s output and demand are still the first in the world. However, the overall production capacity of the cement industry is still in a stage of excess. Due to domestic policy guidance, the cement industry needs to continuously undergo structural upgrading, optimization and adjustment. In the future, the cement industry will continue to shrink production capacity on the basis of stable supply.

Due to the environmental protection and regional requirements of cement, the cement industry will urgently need to adjust its production capacity in the future. Many small and medium-sized enterprises with high energy consumption and low efficiency will gradually withdraw from the market, the cement industry will gradually be optimized, market concentration will continue to increase, and the supply and demand contradiction of overall overcapacity in my country’s cement market will be significantly improved.