China Construction Industry Analysis, Commercial Construction Market, Residential Construction Industry

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Extension of China Cement Industry Extensive
Barriers to Entry Ken Research

• Ken Research

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Construction industry and fixed asset investment
is closely related to cement which is an
important building material. With the development
of construction industry, the demand of cement
also rises as well as cement price. Year over
year there is 8.1 increase in fixed asset
investment and have reached to CNY 59,650.10
billion in China.
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In 2016, there was also a 7.1 increase in gross
output value of construction industry, which
reached to CNY 19,356.70 billion in China. In
addition, there was 3.2 increase in housing
construction area, which was about 7,589.75
million square meters.
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According to the market research report "Research
Report on China Cement Industry, 2017-2021",
after opening-up and Chinas reform there is
rapid growth of cement industry in China. There
was 9.3 CAGR in past 30 years and there was 166
million tons to 2,403 million tons of output
volume increase of cement market in China.
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Despite the fall in growth of Chinas economy but
still it leads worldwide. Therefore, the demand
for cement remained large. From many years,
chinas gross output volume of cement has been
the largest globally.
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There is a large barrier to entry in cement
industry in China. The China cement production
industry is highly fragmented by numerous
enterprises because energy dependence, high
transportation cost and limited sales radius are
the features of cement product in China.
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In the future period, it is expected that there
will be better development prospects of cement
industry in China. On 17 June 2016, there was a
Three years action plan, which was proposed by
government of China.
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There was a steady demand to cement industry as
the plan included to aim 18 million suites, which
further include dangerous buildings in urban
areas, and dangerous suites in rural area of
about 10.6 million.
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According to Chinas railway development plan in
the forecast period, the fixed asset investment
of Chinas railway will reach CYN to 3.8 trillion
and 30,000-kilometer railway will be newly built
until 2020 in terms of infrastructure.
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There will be construction of subway before 2020
by the 50 cities in china in terms of urban rail
transit and the total mileage will reach to 6,000
kilometer. In chinas cement, industry there will
be enlargement in the scale of infrastructure
construction.
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Anhui Conch, CNBN (Sinoma), Taiwan cement, China
resources cement, Jidong development group,
Tianrui group, Jaingsu Jenfeng cement group,
Shanshui (Sunncy), Lafarge Shui On cement and
Asia cement are the top ten cement producers in
china, which have more than half production
capacity.
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For further details of the report
visit https//www.kenresearch.com/manufacturing-
and-construction/construction-materials/research-r
eport-china-cement/116837-97.html   Contact
UsKen ResearchAnkur Gupta, Head Marketing
CommunicationsAnkur_at_kenresearch.com91-901537824
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