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Chinese cement crop is added fast drop cost will be driven rise in price
From;    Author:Stand originally

Crop is added fast drop investment fall after a rise is advocate because of

Up to July, countrywide accrete produces concrete 767 million tons, accumulative total is added together 8.3% , add fast further fall after a rise, crop annulus will be compared July fall for 9.4% , fall relatively the corresponding period expanded somewhat last year. Up to July, accrete of company of cement of countrywide key connection produces concrete 295 million tons, sale rate keeps basically steady.

Since the beginning of the year, countrywide cement crop is added fast apparent under last year, as invest the industry with remarkable and relevant level with fixed assets, of cement industry add fast drop mean those who invest horizontal fall and demand to decrease. July, name of investment of countrywide fixed assets is added fast for 27.3% , relatively the corresponding period increased 0.7 percent last year, but if consider since last year rise in price element, add actually fast show downtrend, of this and cement industry adding fast change sequel is consistent.

July, accumulative total of total level of dweller consumption price rises compared to the same period 7.7% , add fast continue fall after a rise, the policy of macroscopical adjusting control of indication country already obtained certain result. First half of the year gross domestic product thirteen thousand and sixty-one billion nine hundred million yuan, grow 10.4% compared to the same period, than going up fall after a rise of year of the corresponding period 1.8 percent, industrial production adds fast slow down. We think, investment is added first half of the year fast slow down is cement industry is added fast those who put delay advocate because of, current economy moves to still be faced with had risen in price fast pressure, country of second half of the year still can intensify in the control of bank credit respect, grow to maintain economic stability, national hopeful increases investment strength in finance side, increase the construction strength of infrastructure, and this will drive many cement to consume demand, the annual of cement industry adds fast hopeful to maintain control in 9%-10% .

Cost is driven rise in price

The key will contact price of cement company cement July compared to the same period, annulus rises than still maintaining posture, add fast relatively will accelerate somewhat June, among them the price of two main breed adds PO 32.5 and PO 42.5 compared to the same period fast it is respectively 4.6% with 12.6% , respectively relatively rise last month 0.8 with 3.3 percent.

The coal price that serves as main former fuel is in August somewhat fall after a rise, but still move in perch, this goes up in certain level confirm we report before medium judgement, namely coal price hopeful keeps smooth and gradually fall after a rise. Those who carry comparative coal price and cement price go up can discover, first half of the year the change of cement price basically is to follow to change as coal price, this also explains current cement rises in price is cost is driven greatly model. Up to first half of the year, of cement price those who rose to basically cover coal price rise, the profit of cement company did not add substantially. Second half of the year affects what the element of industry profit remains coal price to take the marry again ability of situation and cement price, area difference surrive.
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