Macquarie downgraded the Asia Cement (0743.HK) rating from superior to market to neutral because the decline in cement prices in Sichuan exceeded the bank's forecast. The bank said that the Sichuan market accounts for nearly 30% of Asia's total cement production capacity. Weak cement prices in Sichuan raise concerns that its profit margin will be pressured, yet the bank predicts that coal prices will tend to rise. The bank also lowered the target price of cement in Asia from HK$4.50 to HK$3.70, and lowered its profit forecast for the 2010-11 fiscal year by 33%-47% to reflect the factors of lower cement prices and rising coal costs in Sichuan. The Asian cement closed at HK$3.98 yesterday.