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China's cement consumption expected to grow 6.3% in 2009

By Zheng Lifei (chinadaily.com.cn)
Updated: 2009-03-02 19:44

China's cement consumption is expected to grow 6.3 percent from 2008 to 1.54 billion tons this year, boosted by the massive investment in transportation infrastructure and logistics and warehousing projects, a researcher with the country's top economic planning agency predicted.

Related readings:  Jan cement output hits 82m tons, prices fall  Cement production sees slower growth in Jan-Nov  Cement exports down drastically in 1st eight months

Cement consumption in the transportation, logistics and ware-housing sector is expected to jump 27 percent from 2008 to 180 million tons this year, said Guo Wenlong, a researcher with the Institute of Integrated Transportation, affiliated with the National Development and Reform Commission.

The expected consumption surge in those sectors is likely to offset the demand decline caused by the slumping real estate industry, Guo said at a cement forum in Shanghai on Monday.

Under the government's 4-trillion-yuan ($586 billion) economic stimulus plan, 300 billion yuan will go to transportation and logistics sectors, which will attract nearly 700 billion yuan in investment from other sources, according to Guo.

Such huge investment will create tremendous demand for cement, he said.

China's cement output amounted to 1.38 billions tons in 2008, up 5.2 percent from 2007, the National Bureau of Statistics said last month.