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The cement industry is facing a severe situation in energy saving and consumption reduction
In the first half of the year, the cement industry remained one of the top energy consumers in the national economy, drawing renewed attention from various stakeholders. The sector's development has once again become a focal point, as it faces mounting pressure to improve efficiency and reduce energy consumption.
According to reports, the growth rate of new dry-process cement production has slowed down due to the rapid expansion of overall cement output driven by a surge in fixed asset investment. At the same time, some regions have restarted production at shaft kilns that had previously been phased out. This trend highlights the ongoing challenges in achieving meaningful energy savings within the industry.
Industry experts emphasize that restructuring the sector and increasing the share of advanced technology and equipment are crucial for meeting energy-saving targets during the "11th Five-Year Plan" period. China’s cement industry is under significant pressure to modernize its infrastructure and reduce its environmental footprint.
In an interview with the media, Lei Qianzhi, President of the China Cement Association, highlighted the close relationship between energy consumption and the production process. During the 10th Five-Year Plan, more than 40 million tons of wet-process cement capacity were gradually phased out. Some domestic production lines now meet world-class energy efficiency standards. However, recent data shows a declining growth rate in new dry-process clinker capacity. In 2003, 2004, and 2005, new dry clinker capacity increased by 0.8, 1.3, and 102 million tons respectively, with growth rates of 67.94%, 65.05%, and 30.88%. This year, however, the growth rate is expected to drop to just 17.4% for new dry-process clinker capacity of 75 million tons.
According to a report from the China Cement Association, the development of new dry cement is entering a period of stagnation unless supportive policies are implemented. Industry insiders note that while demand for cement has risen sharply, the pace of upgrading to advanced production capacity has slowed. As a result, outdated facilities continue to dominate the market, making it difficult to achieve substantial improvements in energy efficiency.
As a high-energy-consuming and overcapacity industry, cement companies have faced difficulties in securing new investments and loans since 2004. In this context, Lei Qianzhi emphasized the need for differentiated macro-control measures. He pointed out that without proper support for advanced technologies, and without actively phasing out outdated equipment, it will be impossible to make progress in energy conservation and emissions reduction. The market needs both innovation and effective regulation to drive sustainable development in the sector.