China's cement production expanded 10.3 percent year on year to 159 million tonnes in the first two months, amid the booming fixed-asset investment, data released by the Ministry of Industry and Information Technology (MIIT) have shown.

The growth rate was 6.8 percentage points higher than that for December, as the fixed-asset investment accelerated due to the government's 4 trillion yuan (US$584.8 billion) stimulus package, according to the MIIT data released on Friday.

The wholesale price was 284 yuan per ton, 5 yuan cheaper than the price peak in November, but 27.8 yuan higher than that for January.

China's urban fixed asset investment rose 26.5 percent year on year to 1.027 trillion yuan (US$150.35 billion) in the first two months, as the government's stimulus plan propped up construction of housing and railways.

MIIT figures showed that the output value of the building material sector rose 14 percent year on year in the January-February period, two percentage points higher than that for December.

The figures were calculated based on the comparable working days in the first two months, since China's Lunar New Year holiday fell in February last year, but in January this year.

Zhu Hongren, official with the MIIT said the building material sector was back on track after the stimulus plan showed effect. However, the excess production was still prominent, and efforts must be made to eliminate outdated capacity.

(Xinhua News Agency April 5, 2009)