The lower production volume reflected the closure of inefficient and polluting capacity, said Roy Zhang, a Moody's assistant vice president and analyst.
The report also attributed the fall to reduced winter production, when the government seeks to curb emissions. "The lower production volume and steady demand support the price of cement," Zhang said. "Such prices will help sustain producer margins."
Cement prices will fall slightly during 2019 because of weaker demand from the property sector, which will largely be offset by increasing demand from the infrastructure sector, according to the report.
Cement output in China stood at 2.18 billion tonnes in 2018, down from 2.48 billion tonnes in 2014, the Ministry of Industry and Information Technology said.
Authorities in recent years have curbed the expansion of the cement industry as part of efforts to reduce overcapacity in several bloated sectors.
Latest comments