China considers tougher emission rules for cement producers

China's environment ministry is considering launching stricter rules regarding NOx emissions from cement plants, which, if implemented, could sharply affect the net profits of local producers.

Chinese Vice Minister of Environment Protection, Zhang Lihjun, last month said during a visit to Anhui Conch, that he ministry plans to introduce stricter rules, the Shanghai-based daily reported.

China had previously said it plans to cut the cement industry’s NOx emissions by 10 per cent by 2015.

The Chinese government is faced with the challenge of balancing pressures for strong economic growth with demands to reduce pollutants from industries which operate with few environmental restrictions. 

Kong Xiangzhong, president of the China Cement Association, was quoted by local press as saying that the ministry is considering tightening NOx emission standards to 400mg/m3 from the current 800mg. This will increase cement manufacturing costs in China by CNY15-20/t, while gross profit is CNY80-100/t for cement makers in eastern and southern China and CNY50/t for those in western and northwestern China, according to Kong.

Tougher emission standards are also expected to drive out less competitive firms to make the industry more consolidated.

China's cement output expanded 16.1% to 2.06bn in 2011, and cement factory prices averaged CNY407.5/t in December, National Development and Reform Commission figures show.