MIIT: Cement industry profits have reached 65 billion yuan from the past five months of 2019, up 32.

Byzengjiaming12

Updated Thu, 08 Aug 2019 12:02:15 GMT

  In the first half of 2019, the building material industry followed the general policy of consolidate, strengthen, promote and smooth, which was put forward by the Central Economic Work Conference. The industry firmly established and practiced new development concept, and hold the direction of supply-side structural reform. Therefore, the overall production situation maintained steady, the industry profits further improved, significant effect on the transformation and upgrade have been obtained and firm steps of high quality development have been taken.

  1.Overall production run maintained steady

  From January to June, the building material industry value added increased 10 percent year-on-year, the production of main building material products maintained steady. Thereinto, national cement output was 1.04 billion tons, with year-on-year growth of 6.8 percent; flat glass output was 0.46 billion weight case, up 6.8 percent year-on-year; the output of commercial concrete, ceramic tile, porcelain tile, sanitary ceramic products and insulating glass respectively rose 14 percent, 11.8 percent, 8.6 percent, 10.3 percent and 9.3 percent year on year.

  2.Rebound in prices

  Ex-factory prices of building material and non-metallic mineral products continuous declined in the first quarter, while the prices rebounded since the second quarter. In May, the ex-factory price index was 113.6, which was flat compared with a month earlier and up 3.5 percent year-on-year. In the past five months, the average ex-factory prices have increased 4 percent year-on-year. Cement price has risen in the second quarter after falling in the first quarter. The price was 422 yuan per ton in June, up 0.6 percent year-on-year; flat glass price has dropped continuously over the first half year, while it began to rise in June, reached 77 yuan per weight case, fell 4.2 percent over the same period of last year.

  3.Economic benefit had a significant growth

  Prime operating revenues of the building material industry have reached 2000 billion yuan over the past five months, a year-on-year increase of 13.4 percent, exceeded 8.3 percent compared with the whole industry. Realized profits of the building material industry were 166.9 billion yuan, up 13 percent year-on-year. Operating margin was 8.3 percent, exceeded 2.6 percent compared with the whole industry. Thereinto, operating revenues of cement were 366.6 billion yuan, up 18.3 percent year-on-year. Realized profits were 65 billion yuan, with year-on-year growth of 32.7 percent. Operating margin was 17.7 percent; Operating revenues of flat glass were 32.9 billion yuan, up 6.4 percent year-on-year. Realized profits were 4.5 billion yuan, with year-on-year decline of 23 percent. Operating margin was 13.7 percent. Total profits of soil and gravel mining, refractory soil and stone mining, cement products, construction ceramic products and sanitary ceramic products respectively rose 20.5 percent, 39.6 percent, 35 percent, 26.3 percent and 34.5 percent year on year.

  4.An increase in fixed assets investment

  Fixed assets investment of the building material industry above designated size grew by 11.7 percent year-on-year during the past five months, the rate of that growth fell slightly. From the view of investment structure, the new capacity of cement and flat glass decreased obviously, fixed assets investment of the building material industry mainly focused on technological equipment, environmental protection facilities and downstream deep-processing field

  5.Small increase in Import and Export

  In the past five months, the export value of building material and non-metallic mineral products up to 14.25 billion yuan, a year-on-year increase of 0.6 percent, average FOB price increased 4.9 percent year-on-year. Thereinto, both quantity and price of sanitary ceramic products increased; export volume of technical glass products, glass fiber products, waterproof building material products increased, average FOB price decreased year-on-year; export volume of building stone products, lightweight building material products, construction ceramic products, cement products fell year-on-year, average FOB price increased year-on-year. Besides, the import value of building material and non-metallic mineral products up to 9.4 billion yuan, a year-on-year increase of 0.3 percent.

  Editor’s note: Cement industry profits were expected to reach 80 billion yuan in the first half of 2019, nearly up 20 percent year-on-year (the profits of 2018 were 66.865 billion yuan). Generally, cement industry situation in the second half of the year will be more positive, therefore, the total profits of cement industry in 2019 will reach at least 154.5 billion yuan (the same as last year), or even higher.