BEIJING — China’s cement industry in April saw profits hit a record monthly high due to tight supply, industry data showed.
Profits in the cement industry totaled 14.7 billion yuan ($2.3 billion) in April, according to the China Cement Association.
In the first four months of the year, profits reached 33.7 billion yuan, up 220 percent year-on-year.
The profit surge came as the government reduced overcapacity in the sector and imposed production restrictions to fight air pollution, bringing cement supply down.
In the January-April period, nationwide cement output fell 1.9 percent year-on-year to 584 million tons, according to the National Development and Reform Commission (NDRC).
With stronger capacity controls, cement prices are likely to be kept at a high level even during the upcoming slack season, according to Zhongtai Securities.