Anhui Conch Cement sees strong September sales and output growth, China

The start of peak seasonal demand in China has boosted Anhui Conch's September sales and output as average prices register weekly gains.

A China Securities Journal report said on Wednesday, which cited a number of brokers, said that subsidiaries of the cement giant have been running at full capacity, and some of their output in September has hit new high. In addition, some subsidiaries have exceeded the target output and sales tasks for September and the third quarter of this year. Its Hunan branch has realised this year's profit target ahead of time, according to the report.

The average cement price in China has registered week-on-week increase for several weeks; especially the cement prices in East and Central China regions have shown significant increases recently.

According to Essence Securities, Conch Cement's production capacity in East and Central China accounts for nearly 80 per cent of its total capacity. If the cement price in these regions rises CNY35-50/t, the cement giant's gross profit per tonne would go up to about CNY80 from CNY50 in the third quarter, the broker estimated. If cement price continues rising, Conch Cement's performance may beat market expectation, Essence Securities said.