CRH Slumps to 423rd in Trading Volume Amid 53% Drop as Cement Sector Grapples with Overcapacity and Carbon Policy Shifts

On August 21, 2025, CRH recorded a trading volume of $0.21 billion, marking a 53.03% decline compared to the previous day’s activity. This placed the stock at position 423 in terms of trading volume among listed equities. The share price closed with a 0.05% decline, reflecting subdued investor interest during the session.

A key development influencing market sentiment was the announcement by the China Cement Association of a nationwide industry meeting to address overcapacity challenges. The meeting aimed to coordinate production cuts and stabilize pricing power amid weak demand from infrastructure projects. Analysts noted this could indirectly benefit CRH through potential regulatory support for pricing discipline in the sector.

Additional pressure emerged from a revised environmental policy requiring cement producers to adopt carbon capture technologies by 2027. While CRH has previously stated its commitment to decarbonization, the accelerated timeline introduces near-term capital expenditure risks. The company’s exposure to China’s regional markets also remains sensitive to local government debt constraints, which have dampened infrastructure spending in recent quarters.

Backtest analysis of a high-volume trading strategy revealed a compound annual growth rate of 6.98% from 2022 to 2025, with a maximum drawdown of 15.59% recorded during the period. The strategy showed consistent growth trends but experienced a notable correction in mid-2023, underscoring the volatility inherent in volume-driven approaches. These findings highlight the need for balanced risk management frameworks when implementing such strategies.