Glass and cement markets are easily affected by regulation and control of policies

Building materials contains four aspects: cement, glass, ceramics and new building materials. For the perspective of cost, the production of building materials is highly energy consuming and high polluting, and is greatly influenced by energy prices and environmental policies; as to profit, the need of cement is constrained by the investment in fixed assets, and the demands for glass and ceramics are mainly pushed by investing real estate. Building materials is featured of periodicity

Cement : regional competition and cost control

On one hand, cement needs easy processing technologies and its raw materials are widely distributed, which enables the regional production of cement. On the other hand, low cost, large volume, high freight and low profit determine the regional consumption of cement. Since the distance between production and market of cement are within 300 km, regional supply and demand, market presence and cost control is crucial to a company’s shifting ability on the rising prices of raw materials.

Glass: processing and environmental protection

It is believed that processed glass and energy-saving and environmental friendly glass will increase in the profits of glass manufacturing in the future. Compared with ordinary flat glass, the market of processed glass is more stable and profitable, and the national construction energy conservation rules and regulations feature a board energy-saving glass market.