Huge overcapacity in cement investment surge

Securities Times reporter Zhou Rongxiang in the recent China Cement Network hosted the Third China Cement Investment Summit Forum in 2009, a number of industry authorities said that the Chinese cement market has not bottomed out, the industry began to face serious overcapacity risk, and cement industry demand may also turn straight. Xu Yongmo, vice president of China Building Materials Federation, said that the data from the previous April, China's cement industry investment growth is strong, but it remains to be seen.　　It is noteworthy that due to the high capacity of new production, there are already serious overcapacity in the market. Data show that the national economic stimulus plan, the current investment in the cement industry continue to remain hot, April month to complete investment 12.917 billion yuan, an increase of 65.1%, the previous April accumulated investment of 36.331 billion yuan, an increase of 91.72%.　　Among them, April National cement production of 146.78 million tons, a single monthly output to a record high. Compared to the heat of the market, the experts at the meeting seemed calmer and even worried.　　Liu CHANGFA, president of China Building Materials Economic Research Association, said that the current industry investment enthusiasm is increasing, but in many parts of our country overcapacity has been inevitable, cement industry is how much development space is worth studying.　　A noteworthy data is that China Cement network in the "2008 China Cement Enterprise Capacity hundred selection" found that, from the statistics, the current domestic total output of cement reached 1.7 billion tons, and the market demand about 1.4 billion tons, 300 million tons of spare capacity. "At present, the State has noted this phenomenon, and commissioned us to carry out some preliminary studies to see when the cement industry inflection point will appear, after all, since 2003, the high intensity of investment situation is unlikely to continue."　　Liu Changfa said the government could call a halt to investment in the cement industry on how to deal with the problem. It is understood that cement, steel, wood is China's most important three kinds of industrial raw materials.　　Among them, cement and steel operating posture basically consistent, and in fact, both have a similar problem: years of obsolete production capacity, improve industrial concentration of one result is that advanced capacity is also beginning to face excess. Liu Changfa said that cement can only be used for construction, so the development prospect of cement industry is mainly looking at fixed assets investment and real estate. At present, China's fixed assets investment has been running high, but this situation can not continue, China can not be independent of the world to maintain rapid growth. This means that high growth in the cement industry is unlikely to continue.