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According to Pakistan's dawn newspaper reported on October 26, as international coal prices fell, the cement industry profit margins have improved.According to the latest data show that the coal price has fallen to $50 per ton, and will continue to decline for a period of time.This is mainly due to less demand for Chinese and international economic growth slowdown.
In addition to the cost reduction, the cement industry to expand domestic demand is the major cause of the strong, on the one hand, the country's economic growth, on the other hand china-pakistan economic corridor project demand.It is understood that the first quarter of fiscal 2016, the domestic cement consumption accounted for 82% of the total output of cement, greatly increased from 70% in 2011, industry will improve or gross.In the past ten years, and 1.8 million tons to 4.5 million tons of cement industry production, the overall capacity utilization is approximately 80%, part of the factory reach 90%.
Cherat, Attock and DG Khan Cement (DGKC) and so on the large-scale Cement enterprise official says it will increase 13, 11, 270000 tons of production capacity, including Cherat Cement plant will be completed in the second half of fiscal 2017, others will be completed in 2018.In addition, the Lucky cement plant is also interested in an increase of 270000 tons of production capacity, or in the 2019 fiscal year.In conclusion, the cement industry to expand 770000 tons of production capacity, output will reach 5.3 million tons.
According to estimation, because the future demand for 8 years, the overall improve, even if the cement industry to expand production capacity, can still maintain its utilization about 80%, are expected to be 90% in 2022.Sales growth of 5-6%, with the same level in recent 20 years, but well below the 2003-08 years 15% of high-speed growth.Exports fell, 2016-17 years expected to decline 10%, a 5% drop in 2018-2020, after the flat.
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