National output of clinker and sand aggregate will respectively achieve 70 million tons and 1 billio


Updated Mon, 02 Sep 2019 09:43:41 GMT


  At present, the problem of overcapacity in national cement is especially severe. The new regulations of capacity replacement increase the proportion of the replacement and allow cross-district replacement of capacity, and that provide a scientific and feasible idea for resolving the overcapacity problem. Capacity replacement should help to promote the adjustment of industrial structure and layout optimization.

  But along with the further deepen of supply-side reform, the price of cement has constantly increased and the industry benefit has obviously improved. Driven by the blooming market demand and high gross margin, many regions and enterprises still want to continuously increase new capacity to drive economic growth.

  According to incomplete statistics from China Cement Website, there are 44 new production lines of national cement clinker year-to-date. The total annual capacity of clinker is 63.701 million tons (besides, the annual capacity of cement is 6 million tons)

  Certainly, the clinker capacity of 63.701 million tons is not true “pure growth”, which means most of the capacity come down to replacement of trans-provincial and reduction. However, if construction plans for cement clinker production lines in the above-mentioned cement enterprises will be fully promoted in 2019, then almost 70 million tons of clinker output will hit the market.

  “At present, the principal contradiction of cement industry remains severe overcapacity. The laggard capacity elimination must have breakthroughs and advancements”, said Qiao Longde, Chairman of China Building Material Federation (CBMF). Replacement of trans-provincial and reduction, as a creative method of cutting the capacity in cement industry, only with the implementation in actual operation can it plays central role.

  Under the background of severe overcapacity, the revision of capacity replacement policies will beneficial to promote the industry development and quicken the laggard capacity elimination. However, we still hope that the whole industry, especially large enterprises can set store by their overall interests and lead by example. To implement capacity replacement strictly on the basis of relevant polices and regulations, so that they can restrain the new capacity to stabilize benign development and economic growth for cement industry.

  Moreover, that all is hunky dory in the industry effectiveness, so for cement enterprises, in addition to accelerating the construction of new cement clinker production lines, to enter the field of sand aggregate has continuously become a significant development trend.

  According to statistics from China Cement Website, since the beginning of 2019, there were several cement enterprises put sand aggregate production lines with capacity of 24 million tons per year into operation.

  Besides all of the above-mentioned enterprises, some leading enterprises like CNBM, Conch Cement and Huaxin Cement also have plans of expanding sand aggregate business.

  CNBM: the sales volume of sand aggregate will exceed 0.7 billion tons

  In the annual report of 2018, CNBM revealed that the sales volume of aggregate reached 35.28 million tons, with year-on-year growth of 14.7 percent. In 2019, CNBM will push for the transformation and upgrading, quickening the step of high-quality development, accelerating the progress of “Cement+” model, expanding the construction of aggregate projects and optimizing the layout of cement and commercial concrete.

  CNBM’s sales volume of cement was 370 million tons in 2018. The ratio of sales volume of aggregate and cement is around 2:1, according to that, the sales volume of aggregate should be more than 0.7 billion tons.

  Conch Cement: the new capacity of aggregate(including manufactured sand) will reach 17 million tons in 2019

  According to the 2018 performance report that published by Conch Cement, its aggregate capacity was 38.7 million tons, new aggregate capacity was 1.3 million tons, the comprehensive gross margin of aggregate and stone was 69.12 percent. The main reason is that nation and local government strengthened the renovation of mineral resources and environmental management. So the supply-demand relation of aggregate market improved continuously and the selling price of products increased sharply.

  Conch Cement said that they will speed up to expand upstream and downstream industry chain, striving to develop aggregate industry, actively promoting commercial concrete projects, exploring and developing refabricated building, cultivating and developing new driving forces. The new capacity of aggregate(including manufactured sand) will reach 17 million tons in 2019

  Qilianshan Cement plans to reach 0.4 million tons of aggregate production and sale

  According to the 2018 performance report that published by Gansu Qilianshan Cement, its operating revenue of aggregate was 14.07 million yuan which accounts for 0.25 percent of the total operating revenue. And the gross margin was 30.94 percent.

  Qilianshan Cement said that, during the 13th Five-Year Plan period, they will strive to complete two to three production lines of co-processing of hazardous wastes in cement kiln through transformation. Besides, they will vigorously develop industries like aggregate and wall materials and plan to realize 0.4 million tons of aggregate production and sale in 2019.

  Huaxin Cement will strive to develop aggregate capacity of more than 100 million tons per year

  According to the 2018 performance report that published by Huaxin Cement, the sales volume of aggregate was 14.5 million tons, the operating revenue was 827 million yuan and the gross margin was 63.84 percent.

  By the end of the year of 2018, its capacity of cement aggregate reached 25 million tons per year. In 2019, the new construction that have capacity of 13 million tons per year will be put into operation, except that they will start construction of nine aggregate projects that the total annual capacity will reach 22.5 million tons in Xiangyang, Yangxin, Shuicheng, Fumin, Zhuzhou and other four cities. On the basis of the above-mentioned measures, they aim to reach the aggregate capacity of more than 100 million tons per year.

  West China Cement plans to reach annual capacity of 20 million tons through new project within 3-5 years.

  West China Cement relies on the superiority of mineral resources to develop aggregate business. In 2018, four aggregate production lines was put into operation. Its total capacity was 7 million tons. And they plan to reach annual capacity of 20 million tons through new project within 3-5 years.

  According to rough statistics, if the above-mentioned enterprises’ capacity from production lines of sand aggregate could be fully released in the next half of 2019, the market demand of 1 billion tons sand aggregate will be satisfied.