The continued growth in new contracts signed by Chinese construction companies will significantly boost demand for sand and gravel.

Recently, major construction companies such as China State Construction Engineering Corporation (CSCEC), China Energy Engineering Corporation (CEEC), China Railway Group Limited (CREC), and China Metallurgical Group Corporation (MCC) released their 2023 new contract signing figures, all showing strong growth. These large-scale construction contracts not only demonstrate the companies' strong competitiveness in domestic and international markets but also bring huge market demand to the sand and gravel industry.

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According to statistics, CSCEC achieved a total of RMB 4.3241 trillion in new contracts in 2023, a year-on-year increase of 10.8%. Among them, the new contract signing amount for construction business reached RMB 3.8727 trillion, a year-on-year increase of 10.6%. New contracts are mainly concentrated in Guangdong, Shandong, Xinjiang, and Guangxi provinces, where the construction boom will continue to drive the growth in demand for sand and gravel.

CEEC also performed well in 2023, with new contract signings reaching RMB 1.283731 trillion, a year-on-year increase of 22.37%. The company accelerated its aggregate layout, winning five sand and gravel mining rights throughout the year, with sand and gravel resource reserves exceeding 200 million cubic meters. This strategic layout will provide a solid resource guarantee for the company's future sand and gravel business.

China Railway Group Limited (CRG) signed new contracts totaling RMB 3.1006 trillion in 2023, a year-on-year increase of 2.2%. Domestic contracts totaled RMB 2.90081 trillion, up 1.8% year-on-year; overseas contracts totaled RMB 199.79 billion, up 8.7% year-on-year. The company also made moves in the sand and gravel sector, successfully acquiring several large-scale sand and gravel mining rights, which will further expand its sand and gravel production capacity.

Metallurgical Corporation of China (MCC) signed new contracts totaling RMB 1.42478 trillion from January to December 2023, a year-on-year increase of 5.9%. Overseas contracts totaled RMB 63.07 billion, up 43.2% year-on-year. This indicates that MCC achieved strong growth in both domestic and international markets.

With the gradual implementation and commencement of these large-scale construction contracts, the demand for sand and gravel is expected to increase significantly. The China Sand and Gravel Association stated that the sand and gravel industry will see more development opportunities in the future, but will also face challenges in areas such as resources and environmental protection. While expanding production capacity, construction companies also need to focus on sustainable development and environmental protection, promoting the green transformation of the sand and gravel industry.

Overall, the continued growth in newly signed contracts by Chinese construction companies will generate significant market demand for the sand and gravel industry. Simultaneously, the strategic deployment of construction companies in the sand and gravel sector will also promote the industry's green development and transformation.

Source: Compiled from content published on CNINFO by the China Sand and Gravel Association.