China cement prices rise on higher energy costs

Companies such as Asia Cements see better second half prospects. [$]

{reg}[PAID={"id":"1,2,3,4,5","title":"The content you tried to access is only available to paid subscribers.","link":"1"}] Cement prices have seen a rise following power consumption restrictions imposed in China, a report from The Standard said.

With the shortage of cement brought on by low power usage, prices have reportedly increased by 10 yuan per ton in September over August's prices of 265 year per ton.

Asia Cement Holdings which reported lower profits in the first half of the fiscal is hoping to realize better returns in the second half of this fiscal following the increase in prices. Year-to-date, the company's net profit slipped by 57% to touch 140.2 million yuan, while profit margin fell to 18%.

The company has set production target for the second half as 11.5 million tons, increasing first half production volume by 44%. Further plans include an investment in coal mines in order to bring down production costs.{/reg