China's cement price will makesteady rise in the second half of this year as it will be stimulatedby various forces especially the rise of cost and demand, accordingto the Chinese Economic Times.

    The cement market was active in the first half, with price higherthan the same period last year.

    According to statistics released by the National Development andReform Commission (NDRC), China's top economic regulator,, theaverage price of four major cement products was 342.92 yuan/ton in 36large and midsize cities in the first year, rising 10.63 percent yearon year.

    The price rise of cement will be mainly spurred by price hikes ofcapital goods such as coal, electricity and fuel. Production cost ofcement is rising.

    The producer price index (PPI) for China's industrial productsrose 7.6 percent year on year during the first half of this year, theNational Bureau of Statistics said.

    The growth of PPI, which measures the value of finished productswhen they leave the factory, was 4.8 percentage points higher thanthe same period of last year.

    The PPI jumped 8.8 percent in June year on year, compared with 8.2percent in May.

    The purchaser prices for raw material, fuel and power rose by 11.

    1 percent, compared with 13.5 percent in June. The growth was 7.3percentage points higher than a year earlier.

    At the same time, steady growth of market demand has formedstrong support for the cement price.

    China will step up construction of new countryside, urbanizationand transport facilities, expecting high growth of fixed assetinvestment. The demand for cement will maintain strong.

    The country's demand for cement is expected to increase more than150 million tons this year.

    At the same time, the reconstruction of earthquake-hit and flood-affected areas, especially construction of damaged residentialbuildings, workshops and roads will also stimulate demand for cement.

    The reconstruction of the quake-hit areas is estimated to need morethan 30 million tons of cement, still leaving a shortage of about 15million tons.