Global Demand for Cement and Drywall to Increase

Global demand for cement and drywall is forecast to grow through 2012, according to a report by the Cleveland-based market research firm the Freedonia Group.

According to the report, demand for cement is forecast to grow 5.3 percent per year through 2012. Gains will be driven by strong increases in cement consumption in developing countries. Additionally, a rebound in cement demand in industrialized markets, such as the U.S., Japan and Germany, will further boost advances.

Gains in global cement demand will slow from the 2002-2007 period, which was characterized by double-digit growth in demand in China. Since the country accounted for nearly half of global cement demand in 2007, it is the primary driver of the world cement industry, according to the Freedonia Group. Product demand in India, the second largest national market for cement, will climb at the fastest rate of any major country.

In developed areas of the world, such as the U.S., Japan and Western Europe, cement sales increases will lag behind the world average, although improvement over the 2002-2007 period is expected.

Demand for straight portland cement, which currently accounts for 63 percent of all cement sales worldwide, will be spurred by increases in global construction spending and further advances in manufacturing technology. However sales of blended cement will climb at a faster pace through 2012, driven by their relatively low cost and favorable environmental profile. Ready-mix concrete is expected to be the fastest growing market through 2012.

World demand for drywall is forecast to expand 4.5 percent per year through 2012. Gains will vary by region, according to the market report, depending on factors such as building construction spending and economic growth prospects, as well as trends in local construction techniques.

Gypsum-based building plaster sales will rise 5.2 percent per year. The market for drywall is concentrated in North America, which accounted for 48 percent of global sales in 2007. However, through 2012, sales growth in North America will significantly lag behind all other regions, primarily because of maturation in the U.S. market.

However, drywall prospects in the Asia/Pacific region will be particularly robust, especially when excluding Japan. China and India will perform especially favorably, with countries such as Indonesia, Malaysia, Thailand and Vietnam also registering healthy gains in demand. Growth in other developing parts of the world will typically exceed 9 percent per year through 2012, with new drywall plants opening in booming markets such as the United Arab Emirates and Ukraine. Both rapid construction growth and rising popularity of dry construction techniques will bolster demand in developing countries.

Both studies, “World Cement” and “World Drywall & Building Plaster” are available for purchase through the Freedonia Group at www.freedoniagroup.com.