China's cement export grows rapidly but expects slowdown

As learned form the Ministry of Commerce China, as the world's top producer of cement since 1985, is facing increasing challenges on its cement export.

China had made 834 million tons of cement by the end of November last year and exported 7.04 million tons by the end of 2004. The 32.11 percent and 34.28 percent increase in export volume and value respectively is robust following a nosedive in 2002 and a slight recovery in 2003.

41.68 percent of the exports are from Shandong province. Foreign funded producers contribute 40 percent of China's total cement export and their products are also sold in the domestic market.

South Korea is the largest buyer of Chinese cement, followed by the US. Exports to South Korea, Angola and Macao all upsurged from more than 100 percent to more nearly 250 percent. The most staggering rise takes place in export to United Arab Emirates which has skyrocketed to 122489.26 percent.

However, signs show that it will be very difficult for China to expand its cement export aggressively in the foreseeable future years.

60 percent of cement made in China is Portland cement which does not receive brisk demands. China does not produce low heat cement much which is in short supply on the international market.

The reserves of limestone, a raw material for low heat cement, will only last for 30 years. And much of the resource is in hand of foreign funded enterprises or joint ventures. In addition, mining of limestone for cement production will be increasingly limited for the sake of the environmental protection.

It is a pressing task for Chinese exporters to address their problems in technical improvement, shipping costs, packaging, delivery, products specifications and after-sale service, otherwise their business will face a tough road ahead.

Internationally, the world market is sluggish for the construction sector while Chinese cement producers find pleasant profits on the domestic demands.

Liquidity is another problem for exporters. And export agents find their service not rewarding enough.

By People's Daily Online