Profits of China's cement industry hit monthly high in April

BEIJING - China's cement industry in April saw profits hit a record monthly high due to tight supply, industry data showed.

Profits in the cement industry totaled 14.7 billion yuan (about $2.3 billion) in April, according to the China Cement Association.

In the first four months of the year, profits reached 33.7 billion yuan, up 220 percent year-on-year.

The profit surge came as the government reduced overcapacity in the sector and imposed production restrictions to fight air pollution, bringing cement supply down.

In the January-April period, nationwide cement output fell 1.9 percent year-on-year to 584 million metric tons, according to the National Development and Reform Commission.

With stronger capacity controls, cement prices are likely to be kept at a high level even during the upcoming slack season, according to Zhongtai Securities.