[HIGHLIGHTS] Production capacity is at a historical high and the cement industry has entered an important period of adjustment.

China's cement industry is entering an important period of adjustment, with industry overcapacity intensifying, demand continuing to shrink. Industry profits will fall by more than 80% for two consecutive years in 2022 and 2023.

The cement industry urgently needs to solve the problem of exiting excess production capacity, experts say. "Dual controls on energy efficiency, dual controls on pollution, rising prices of energy and raw materials have led to rising product costs," says Kong Xiangzhong, executive director of the China Cement Association.