Monday, January 4, 2016

China Cement



One thing that China produces a lot of is cement.  Bill Gates opined in June of 2014 that in the three years 2011 to 2013 China produced more cement than the USA produced in the entire 20th century.


But the growth in cement production in China is over and 2015 will see approximately a 5% reduction versus 2014.


Steel production is also hitting the skids in China.  In fact industrial production in China is headed south.   The last time industrial output was growing was in February 2015


From a green point of view this is wonderful.  From an economic point of view this is a disaster.   Australia, South Africa, Brazil, Chile and other countries that are the quarries of raw material for China are sucking wind. 

China will dump their steel in other global markets.  Cement is often too expensive to transport too far but I bet that China will dump cement on world markets.  The Pakistanis have been dumping cement in South Africa.  The Chinese are dumping the wheel barrows that carry the cement.



Folks the world is headed into a dumping tailspin and the WTO will be pretty busy with dumping cases.   As for my prediction on China it is quite simple.  For the next two decades, I doubt China will use as much steel or as much cement in a year as they did in 2013.  China will be dumping excess steel and cement on world markets for quite some time to come.

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