November 22, 2008

China not limiting national cement prices - Mr Guo

Bloomberg cited Mr Guo Jingbin executive director of Anhui Conch Cement Co as saying that Chinese government will cap cement prices to curb inflation.

Mr Guo said “I don't think the government will impose nationwide price controls on cement. Cement was one of the first few products for which price controls were relaxed in China, so the government won't control its price in the absence of extenuating circumstances.”
He said that “China's National Development and Reform Commission have said it will place limits on the prices of basic materials used during the post earthquake rebuilding phase, including cement steel and glass. The specifics haven't been announced yet.

Mr Guo said “The price of cement in Sichuan province was around CNY 600 per tonne before the earthquake, compared with a national average of about CNY 300.

He said that “Cement prices in that region were the highest in the country even last year. Without government controls, the price there could exceed CNY 1,000 per tonne after the earthquake.''