青岛地区水泥市场研究报告.ppt

I:\active\RGL7\Working\DK\RGL7_3IP_Final with TJv1.ppt 青岛地区水泥市场研究报告 Appendix We will assess the demand situation by looking at historical demand, forecasts of demand, and the key areas of future development Total concrete consumption in Qingdao has been increasing by 25% per year The key historical driver has been the rapid expansion of commercial and residential real estate New regulations issued early in 2005 limiting site mix concrete have had a significant impact Site-mix substitution to date has been geographically uneven, mainly due to the lack of a source for pre-mix concrete in certain districts Pre-mix volumes have taken an increasingly larger share of the market during this period, with an estimated total more than 4.3 mn m3 in 2005 Except for a slight slow down in 2007-2008, demand for pre-mix concrete is expected to show strong growth over the next five years A major driver of future growth will be the substitution of pre-mix for site-mix concrete in outer districts Most market participants believe that real estate will continue to drive future pre-mix growth in Qingdao Historically, real estate has made up 70% of concrete usage “… In the past few years, real estate construction projects, especially residential buildings, have been increasing very fast, and account for about at least 60% of total construction project in Qingdao …” Sales Manager, Rinker “… Many companies have located their manufacturing sites to the Huangdao Development Zone. A huge number of new immigrants along with those companies need residential buildings to settle down. The Huangdao real estate market is booming …” General Manager, Panshi The growth of real estate projects is expected to continue in the future As one important part of urbanization processes, the “flat homes” will be torn down to build mid-rise residential constructions* “… The government has set a goal to replace ‘flat homes’ by affordable housing in the near future …” Operation Manager, Rinker As