High-speed growth of fixed assets investment in building materials from January to May

In the first five months of this year, the building materials industry completed a fixed asset investment of 183.8 billion yuan, a year-on-year increase of 56.2%, an increase of 11 percentage points over the same period last year. Among them, the products with faster investment growth include: cement manufacturing completed fixed assets investment of 52 billion yuan, an increase of 78.6%; cement products manufacturing 12 billion yuan, an increase of 72.7%; other non-metallic mineral products manufacturing of 10.5 billion yuan, The growth rate was 88.2%; the construction stone used for construction was 6.2 billion yuan, a year-on-year increase of 62.9%.

The main reasons for the rapid growth of fixed assets investment in building materials:

First, thanks to the implementation of the national “guarantee growth, expansion of domestic demand, and restructuring” package, in particular, 230 million of the 4 trillion investment is used for infrastructure such as railways, highways, airports, ports, and low-rent housing. These investments have a significant effect on the direct demand for building materials, and the increase in cement alone is around 500 million tons.

Second, in recent years, most of the building materials industry's economic benefits continue to increase product quality. The total profit of the building materials industry was 88 billion yuan in 2007, an increase of 46% over the previous year. In 2008, despite the impact of the international financial crisis, the total profit was 110 billion yuan, an increase of 25% over the previous year. The economic benefits of the building materials industry in the first five months of this year The overall situation is basically stable. The increase in the rate of return on investment has made domestic and foreign investors more optimistic about China's building materials industry and increased their willingness to invest.

Third, the Sichuan earthquake recovery and reconstruction has highlighted the demand for building materials. In 2008, affected by post-earthquake reconstruction, Sichuan Province, cement, glass, building ceramics, wall materials and other building materials products are booming. From January to April this year, Sichuan's cement production increased by 37% year-on-year, flat glass production increased by 8.5%, building ceramics production increased by 44.3%, and wall material production increased by 119%. The production of building materials in neighboring provinces and cities such as Gansu, Shaanxi, Chongqing and Guizhou has also increased significantly.

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