China’s cement prices fell 0.7 per cent in the week through 16 February due to a 2.8 per cent decline in eastern China. Prices in all other regions were largely flat, according to a report by The China Perspective.

Nationwide cement inventory level rose to 71.6 per cent of full from 67 per cent due to weaker demand in the eastern and south-central regions.

According to research report by HSBC, cement prices in China are expected to increase by 10 and five per cent in 2014 and 2015, respectively, . As a result, higher prices as well as lower coal costs may offset rising costs from environmental protection monitoring, the bank expects.

Over the next two years, HSBC predicts the compound earnings growth of the cement sector would reach 35 per cent.