Demand Grows Slowly, Large-scale Restructuring will Appear in China Building Materials Industry

(China Glass Network) 7 million sets of security housing and transformed housing will start to be constructed next year. And RMB 400 billion will be invested on the railway infrastructure constuction. Now China Building materials manufacturers begin to calculate the market demand and business strategy.

When accepting interview, the chairman of China National Building Materials Group SONG Zhiping said, “Chinese economy may enter the medium-speed growing stage from the next year. But building materials market is still optimistic for rigid demand. Except for security housing and infrastructure construction, implementation of many major projects will bring market demand, including rural housing reforming, new countryside construction, agricultural facilities improvement and the construction of water conservancy, high speed rail, highway, ports, airports etc.”

But he also admitted that building materials industry will face pressure on slow demand growth, boosting the motivation of enterprise restructuring etc.

Nowadays, Production of cement and glass etc. in China has accounted for more than half of the world. However, the building materials industry exists many problems, such as excess capacity, excessive enterprise number, low industry concentration, malignant market competition, increased pressure on energy conservation and emission reduction etc.

Excess capacity has incurred the government regulation. Then cement and flat glass are on the Key Excess Capacity List.

In the past five years, China has weeded out backward cement capacity of 340 million tons, flat glass capacity of 60 million weight boxes.

A large-scale restructuring will appear in China building materials market.