Xinjiang's total cement value exceeded 18 billion yuan in 2013

According to the Xinjiang Building Materials Agency, by the end of 2012, Xinjiang's cement production capacity will exceed 75 million tons, and it is expected that Xinjiang's cement production capacity will exceed 90 million tons in 2013, fully guaranteeing that the 12th Five-Year Plan period and beyond will affect the cement production in Xinjiang. At the same time as demand, the extent of new cement surplus in Xinjiang will continue to increase from next year.

Data show that from January to October 2012, the Xinjiang cement construction project completed an investment of 10.9 billion yuan, a year-on-year increase of 27.52%, and the investment amount ranked first in the country. As the release of cement production capacity is greater than the increase in production demand, this year Xinjiang has a full supply of cement, cement production has grown at a rapid rate, investment in cement construction projects has grown rapidly, and accounts receivable have increased significantly. At the same time, cement prices have fallen month by month, profits of cement companies have declined, and the growth rate of industrial output of the cement industry has dropped.

With the increase in the production capacity of a batch of cement projects under continuous production and use of industrial wastes for projects under construction, Xinjiang’s cement oversupply situation has increased in the second half of 2012. Xinjiang Kashgar and Kezhou have a large surplus of cement production capacity. Cement prices have fallen below the cost price, and cement companies have suffered losses across the board. Under this situation, Xinjiang Building Materials Banking Office proposed that Xinjiang cement enterprises arrange production in an orderly manner, compete rationally, and jointly maintain reasonable profits in the industry.

According to analysis, the growth rate of fixed asset investment in Xinjiang will maintain this year's level in 2013. In the next period, the cement industry will be driven by strong fixed asset investment, and the trend of rapid growth (Cao Yuan) will not change. However, under the current background of severe overcapacity in the national cement industry and the country's proposal to change the development mode, the Xinjiang cement industry is also faced with multiple pressures such as “accelerating development, securing supply, structural adjustment, optimization and upgrading, and energy saving and emission reduction”.

Xinjiang Building Materials Agency predicts that in 2013, Xinjiang's cement output will reach 50 million tons, an increase of 22% year-on-year; the industrial output value of the cement industry will be 18 billion yuan, a year-on-year increase of 20%; cement prices will continue to decline, but in a modest manner; the profits of cement companies will continue With the decrease, accounts receivable continued to grow; energy consumption per unit of cement products continued to fall; investment in cement construction projects slowed down, and investment growth rate will continue to fall, even with negative investment growth.