Released on = April 20, 2007, 9:57 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Cement consumption in China to grow over 5% per year through
2010 Demand for cement in China will rise 5.1 percent annually through 2010 to reach
1.3 billion metric tons, driven by moderating but healthy growth in construction
expenditures.

Press Release Body =
Cement in China industry forecasts to 2010 & 2015

Cement consumption in China to grow over 5% per year through 2010 Demand for cement
in China will rise 5.1 percent annually through 2010 to reach 1.3 billion metric
tons, driven by moderating but healthy growth in construction expenditures. China
will remain the largest national consumer of cement in the world, accounting for
close to half of global cement consumption in 2010.

Ready-mix concrete to continue the fastest growth

Cement demand in the ready-mix concrete market will post the strongest gains of any
market category through 2010, increasing 11.2 percent annually through 2010. Market
growth will continue to benefit from the government's implementationof Decree #341,
which bans onsite concrete production in over 200 cities across China in order to
reduce environmental damage from onsite cement mixing and improve the quality of
concrete used in construction. Concrete product producers will remain the largest
market for cement in China, accounting for 36 percent of all cement consumption in
2010. Demand for concrete products, including blocks, bricks, culverts, floor and
wall panels, noise barriers, pipes, poles and various other items, will be
stimulated by the growing popularity of precast concrete products among construction
contractors. Many concrete products can be better or more cost-effectively
fabricated in specialty plants, instead of being cast on site.

Nonbuilding construction fastest growing end use

Cement consumption in nonbuilding construction will continue to post the best gains
of any end-use segment, rising 6.8 percent yearly through 2010. Gains will be
stimulated mainly by strong growth in China's nonbuilding construction activity. The
government's continued efforts to modernize the country's infrastructure is
exemplified by such massive projects as the South-North Water Diversion -- designed
to redirect water to the northern plains from central and south China. This project,
scheduled for completion in 2050, will result in annual cement consumption of over
one million metric tons. Nonresidential building will remain the largest end use for
cement in China, growing at a 4.6 percent annual rate through 2010. Continued
strength in foreign and private direct investment in commercial real estate
development will help spur market gains.

Opportunities vary by region
China is a large country, consisting various distinct markets characterized by
different economies, cultures and languages. Demand for cement will record the
fastest gains in the Northwest and Southwest regions, benefitting from the
government's "Go West" strategy. In addition, demand for cement in the Northeast
region will also outpace the national average growth, supported by the "Reviving the
Northeast" campaign. Nevertheless, the Central- East and Central-South will remain
the largest Chinese regional markets and will consume over two-thirds of cement sold
in China in 2010.

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forecast period. In order to help you understand the market dynamics in China's ever
expanding economy, Freedonia provides you with the most reliable information and
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