China’s cement output declines amid weak demand; Indonesia sees similar trend

China's cement production in August 2025 totaled 148 million mt, a 6.2% decline compared to the same month last year, according to the National Bureau of Statistics of China. Cumulative production for the first eight months of 2025 stood at 1.105 billion mt, down 5% year-on-year, reflecting ongoing structural challenges in the domestic market.

The drop in output is attributed to a combination of weakening domestic demand, a prolonged real estate sector downturn, and sluggish infrastructure investment.

A China-based trader said that domestic demand has been falling steadily, with the infrastructure sector continuing to slow. The trader added: "We expect a similar trend in 2026, with cement production likely declining by another 5–8% year-on-year."

In July 2025, cement production reached just 146 million mt, marking the lowest monthly volume since 2009. The real estate slowdown played a central role in the decline, directly impacting demand for construction materials. Additionally, infrastructure investments failed to deliver the anticipated support, further straining the industry.

In response, many Chinese cement producers have begun to curb production capacity in an attempt to stabilize the market and prevent oversupply, aligning production with weaker demand.

This slowdown isn't limited to China. A trader based in Indonesia said that similar conditions are emerging in Indonesia, with local demand decreasing year-on-year.

"Indonesian suppliers will need to explore new export markets to absorb excess cement and clinker volumes," the trader said.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $36/mt on Sept 18, down from $36.25/mt FOB the previous week. Platts also assessed cement clinker FOB Vietnam at $31.25/mt on Sept 18. down from $31.50/mt FOB the previous week.