China Resources Cement prices weaken in1Q2012

China Resources Cement Holdings Ltd, the largest cement producer in South China, saw its average sales price decline 6% or RMB20/t Y-on-Y to RMB340/t in the first quarter of this year, noted Deputy Chairman Yu Zhongliang.

Yu noted that the firm's gross margin narrowed to 20% during the low season. But he believes the company gross margin would reach 30% this year, as sales prices began to rebound at the beginning of April.

Sales volume surged 33% from a year earlier in the first quarter of 2012, said Yu, adding that sales volume also increased 30% Y-on-Y since the beginning of this year. President Zhou Longshan said the firm, which sold 52Mt of cement in 2011, aims to meet an annual target of 65Mt this year. China Resources Cement has inked an agreement to secure a RMB300m loan with a maturity of two years.

State-owned China Resources (Holdings) Co holds a 73.34% stake in China Resources Cement, sources reported.