China's Regulator to Survey Cement Investment to Cut Excessive Production


China Development and Reform Commission (CDRC), the top economic planner, is mulling a nationwide cement investment survey starting next week to curb overheated cement productions, reported China Securities Journal, quoting sources familiar with the commission Monday.

The newspaper cited the source as saying that after the investigation, CDRC may suspend the approval of cement investment projects in part of China's provinces.

It's been learned that excessive capacity has been a strenuous problem in China for some time, since various local governments' fever to introduce new investments typically require cement inputs.

Statistics show that investment in new cement programs mounted to 52 billion yuan in Jan-May, up as much as 78.5 percent or 16.7 billion yuan year on year. The figures in North and Southwest China even rose by 103.91 percent and 223.6 percent, respectively.

Lei Qianzhi, Chairman of China Cement Association, noted that he is deeply concerned with the phenomenon, saying that the previous capacity excess in Zhejiang province, which led to an across the board price war and subsequent losses in its cement industry, might be spreading elsewhere.

An agenda for the survey is currently being cooked-up, says the report, disclosing meanwhile that a brand-new ratification regulation may be debuted later.

It says that the survey will focus on actual local cements demands, the scope of cement projects under construction and freshly completed programs, and the approved and would-be approved cement projects.

Besides, concerned insiders said that Sichuan, Anhui, Hebei, and Hunan provinces, where cement production capacities are mounting, will be the key targets under investigation.

It's likely the survey could last a month. The final document revealing the constriction of newly added cement production capacity will be publicized mid-August.
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