China Building Materials Federation: Further Promoting Capacity Management and Constructing a New Model of Capacity Management to Promote High-quality Development of Cement Industry

the China Building Materials Federation

have repeatedly stressed the need to comprehensively rectify the "involution" competition. Both the Proposal of the Central Committee of the Communist Party of China on the Formulation of the Fifteenth Five-Year Plan for National Economic and Social Development and the Central Economic Work Conference regard the comprehensive rectification of "involution" competition as an important task to promote the construction of a unified national market. Strengthening capacity governance in key areas has become an important direction of China's economic governance.

Cement industry is an important part of China's industry and an important basic industry to support national economic and social construction. In recent years, due to the continuous sharp decline in investment in real estate development and the slowdown in the growth of investment in infrastructure construction, the demand for cement products has dropped significantly, and the output of cement has dropped rapidly from 2.38 billion tons in 2021 to 2025. 16. From 2022 to 2025, the ex-factory price of cement products decreased by 30%, and the total profits of industries above the scale in 2025 decreased by more than 80% compared with 2021. There is also a risk of decline in the quality of cement products, and the unqualified rate of national quality spot checks of cement products has been higher than 3% for four consecutive years. The fundamental reason for the serious decline in the operation quality of the

cement industry is the concentrated outbreak of the contradiction of excess capacity accumulated over a long period of time under the drastic changes in the relationship between supply and demand. Under the influence of the transformation of economic and social development mode, the cement demand market has entered a continuous downward adjustment range, and the impact of the deep and continuous adjustment of the real estate market has forced the cement industry to take effective measures to speed up capacity reduction, reduce supply pressure, reconstruct the cement supply and demand adjustment mechanism, reverse the continuous downward trend of the industry, and establish a new model conducive to the long-term stable development of the industry. Therefore, it is urgent to strengthen the capacity management of the cement industry and break through the difficulties in the development of the industry.

Under the guidance and support of the Ministry of Industry and Information Technology, the China Building Materials Federation, together with relevant industry associations and key enterprises, has set up a working group to promote capacity management in the cement industry, and on the basis of in-depth research, has promoted the implementation of relevant policies such as capacity replacement methods and capacity management in the cement industry, so as to systematically promote and standardize industry capacity management. And cooperate with the organization, coordination and promotion of related work. Over the past year, the cement industry has achieved remarkable results in capacity management, further consolidated the foundation for deepening capacity management, entered a new stage of capacity management, and is building a new model of cement capacity management in an all-round way.

First, the cement industry has achieved phased results

in capacity management, improved inventory management, and strengthened the use of comprehensive means to support capacity. At present, laws, regulations and policy management systems have been formed for many departments to reduce production capacity by means of energy consumption, environmental protection, standards, capacity management, licensing management and other comprehensive means. In order to further strengthen the effect of policy linkage, the China Building Materials Federation, together with relevant units, has made use of the "account" of multi-sectoral cement enterprise management and industry research. Compilation of the National Cement

The production capacity of over-approved production lines was increased, and the reduction of cement clinker production capacity achieved outstanding results. It is the key to standardize the capacity management of cement industry and control the capacity of cement clinker. According to industry statistics, the actual production capacity of cement clinker exceeds the registered production capacity by about 40%, which has long been free from industry management, industry regulation and market regulation, and has become the root cause of the ineffective capacity management policy, the difficulty of market regulation and the difficulty of solving the problem of serious overcapacity for a long time. In order to regulate the production capacity of the cement industry, the Ministry of Industry and Information Technology and other four ministries and commissions issued relevant policy documents to supplement the production capacity beyond the approved production line as a measure to promote the unification of the actual production capacity and the registered production capacity. China Building Materials Federation actively cooperates with the Ministry of Industry and Information Technology and relevant regional government departments, together with China Cement Association and key enterprises, to promote the implementation of capacity replenishment. By the end of 2025, 297 over-approved cement clinker production lines have added 110 million tons of production capacity, 198 production lines and 1.

System layout have continuously consolidated the foundation of capacity management. The relevant policy documents of the Ministry of Industry and Information Technology and other four departments on further standardizing the capacity management of the cement industry clearly require that the cement clinker production line should be produced strictly in accordance with the approved capacity, that the daily cement clinker output should not exceed 110% of the daily approved capacity, and that the annual output should not exceed the total annual approved capacity. According to the production process of cement clinker, China Building Materials Federation puts forward the technical route for verifying the output of cement clinker by means of multi-data cross-validation, using the measurement and monitoring data and production management data in the production process, and organizes the compilation of the Monitoring and Accounting Method for the Output of Cement Clinker in the Cement Industry (T/CBMF 367 — 2025). It provides technical support for the monitoring of cement clinker production in various places. At present, Hubei, Chongqing, Yunnan, Sichuan and other regions have taken the lead in carrying out or starting cement clinker production monitoring in an all-round way, which will provide practical experience for carrying out production monitoring in an all-round way. At the same time, in order to further play the role of public opinion supervision and industry self-discipline, strengthen the bottom line of the rule of law, and optimize the industry development ecology, China Building Materials Federation has taken the lead in organizing the development and construction of industry capacity management information release and "anti-monopoly, anti-dumping, anti-counterfeit and inferior products" platform, which will provide support for the establishment of a long-term mechanism to optimize the industry development ecology.

2. Deepening capacity management has entered a new stage

, and a new model of full-process capacity management in the cement industry is being constructed. On the basis of standardizing the production capacity of the cement industry, the policy system of strengthening the management of the cement industry is constantly improving. The Measures for Capacity Replacement in the Cement and Glass Industry (Version 2024), which has been promulgated and implemented, will strictly control the new capacity and control the import of capacity; the monitoring of cement clinker output will control the export of capacity; At present, the Ministry of Industry and Information Technology is entrusting the China Building Materials Federation to organize the revision of the standard conditions for the cement industry, which will strengthen the standardization of enterprise management and optimize the capacity stock in accordance with the principle of classification and differentiated management; At the same time, under the guidance of the Ministry of Industry and Information Technology, China Building Materials Federation is promoting the establishment of an early warning mechanism for the production capacity of key building materials products, focusing on the current and future capacity changes and supply and demand research and judgment, effectively guiding enterprises to invest rationally and release production capacity, and promoting the formation of a dynamic balance between supply and demand in the cement industry. So as to build the whole process capacity management mode to ensure the healthy and sustainable development of the cement industry. With the promotion of capacity management mode, the production line list information will be continuously improved to support capacity management. It is the key to carry out cement clinker production monitoring in

an all-round way. Comprehensive implementation of cement clinker production monitoring is an important guarantee to consolidate the achievements of capacity management, and also a key link to build a unified national market for the cement industry. Implementing output monitoring in an all-round way and clearly stopping cement clinker production line from exceeding the production capacity on record can effectively guarantee the effect of capacity management "no repetition" and "no retrogression", ensure the law-abiding rights and interests of enterprises that have completed the replenishment of production capacity, avoid the reverse incentive effect of "law-abiding losses, illegal profits", and better guarantee the consistency of national policies and regulations. Strengthen the orientation of capacity management. As far as industry management is concerned, it is beneficial for government departments and industry enterprises to clearly grasp the base number of production capacity, effectively carry out research and judgment on supply and demand situation, and enhance the dynamic adjustment ability of supply and demand in the industry. The implementation of cement clinker output monitoring should be based on the principle of national unified market, and the regional public management platform should be established by the industry management department to achieve unified standards, methods and supervision, so as to ensure the unification of approved capacity and actual capacity, and the coincidence of capacity and output. At the same time, we should achieve full coverage of production enterprises, and focus on the supervision of over-approved production lines that have not been implemented to supplement production capacity, so as to ensure the full and effective landing of policies.

Accelerate the establishment of a long-term mechanism to optimize the development environment of the industry. Give full play to the role of cement industry capacity management information release and "anti-monopoly, anti-dumping, anti-counterfeit and inferior products" working platform, continuously track and monitor the cement industry capacity dynamics, carry out industry anti-monopoly, anti-dumping monitoring and early warning assessment; Strive for the support of relevant departments, systematically evaluate the cost of cement clinker in the industry and region, study and implement the benchmarking cost system of cement products, warn and investigate the sales behavior of touching below the production cost, and reverse the behavior of over-relying on low-price competition or even selling below the cost price; Under the guidance of relevant departments, carry out product quality spot checks, organize product quality supervision and inspection from time to time according to relevant reporting clues and public opinion; promote the application of cement product instructions and quality traceability standards, improve the transparency of product components, achieve traceability of production and circulation, and support the work of anti-counterfeit and inferior products.

3. Firm determination and confidence

to promote the capacity management of the cement industry The capacity management of the cement industry is a complex and arduous systematic project, which is related to the survival and development of the industry and the quality change of the industry. We must give full play to the joint efforts of the government, industry and enterprises, and systematically promote them in accordance with the principles of legalization, commercial civilization and marketization. Cement clinker production monitoring should be taken as the guarantee to standardize cement production capacity management; the implementation of inventory management should be taken as the starting point to strengthen policy coordination, eliminate illegal and inefficient production capacity as soon as possible by comprehensive means, and optimize production capacity structure; enterprise management should be strengthened and standardized in a differentiated way to achieve resource agglomeration and "support the superior and eliminate the inferior"; capacity early warning should be taken as the guidance to promote the adjustment of supply and demand relations; Taking public opinion supervision and the "three anti" mechanism as the bottom line, we should severely crack down on monopoly, dumping, counterfeiting and selling, comprehensively rectify the "involution" competition, and promote the optimization of the industry development ecology. Make every effort to build a new mode of capacity management in cement industry under the new situation.

We call on relevant government departments at all levels to strictly implement relevant laws, regulations and industrial policies, and standardize the management of cement production capacity by the rule of law; we call on cement enterprises to practice commercial civilization, comply with production, operate in good faith and perform the contract in a civilized manner, and promote the development and progress of the industry through orderly market competition; We call on industry organizations at all levels to play an active coordinating role, effectively guide enterprises to standardize their operations, actively reflect their demands, and cooperate with relevant government departments in capacity management.