Demand for Cement in China to Rise

Demand for cement in China is forecast to rise 6 percent per year through 2012 to 1.8 billion metric tons, according to a report released by Cleveland-based market research firm the Freedonia Group.

Growth will be driven by rising, but decelerating construction expenditures in China. Further advances in cement manufacturing technology will also help stimulate sales by improving the quality of the product, according to the study. Blended cements will account for about 90 percent of total sales in 2012, reflecting the versatility of these types across a range of construction applications, as well as their performance and/or price benefits over competitive cements.

According to the Freedonia Group report, nonresidential building construction will continue to represent the largest end use for cement, benefiting from ongoing industrialization in china. However, demand for cement in non-building construction will outpace other construction categories, rising 7.3 percent per year through 2012. In the short term, demand for cement used in infrastructure applications will benefit from government spending packages designed to offset the effects of the global economic downturn. In the longer term, a number of large infrastructure projects and other government initiatives to address imbalances in development between urban and rural areas will boost non-building cement consumption.

Construction contractors will continue to be the largest market for cement, accounting for 32 percent of total demand in 2012. However, the ready-mix concrete market will see the strongest growth, advancing 9.8 percent per year through 2012. Gains will benefit from government regulations banning on-site concrete and mortar mixing. Demand for cement used in concrete products is expected to grow 5.4 percent per year through 2012, driven by the growing popularity of precast concrete with many contractors. In addition the phase out of clay bricks will boost demand for concrete blocks.

The full study “Cement in China,” is available for purchase through the Freedonia Group.