Cement – like steel – reflects the condition of construction, but in contrast to it is more strongly associated with the domestic market. This raw material is not subject to mass exports, and excess concrete structures cannot be “sent abroad” like cars or solar panels.
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According to Bloomberg, according to data published on Friday, In July, cement production in China was the lowest for this month since 2009. The prolonged crisis in the real estate sector and limited activity in infrastructure were behind the decline.
From boom to stagnation
Cement production It has grown in China continuously from 1990 until 2014, responsible for the development of skyscrapers, transport networks and giant housing estates. The peak of production fell on May 2020, when Beijing launched pandemic stimulation programs, and the real estate crisis was just outlined.
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Today, however, the data illustrates a clear slowdown. In July, cement production fell by over 5 percent. year to year, to approx. 146 million tons. Extreme weather conditions – heat waves and heavy rainfall, which hindered the conduct of construction works.
A wider picture of the economic slowdown in China
The problems of the cement sector are part of the general weakness of the Chinese economy. In July, industry, investments and retail sales fell below expectations. Steel production was the weakest since 2017, real estate investments have fallen the most since 2020, and loans in Juany have decreased for the first time in two decades.
According to experts, further decreases in cement production are possible. The industry is currently subject to reforms on the supply side that forces producers to reduce production capacity so as to better adapt them to real demand.
