Demand for cement in China is forecast to rise 6.0 percent annually through 2012 to 1.8 billion metric tons. 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. 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. These and other trends, including market share and product segmentation, are presented in Cement in China, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
Nonresidential building construction will continue to represent the largest end use for cement, benefiting from ongoing industrialization in China. Nonresidential building cement consumption will also be boosted by the construction of new manufacturing facilities as the Chinese industrial sector focuses on more value added goods. However, demand for cement in nonbuilding construction will outpace other construction categories, rising 7.3 percent annually to 544 million metric tons in 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 nonbuilding 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 annum through 2012 to 383 million metric tons. 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 annually through 2012 to 513 million metric tons, driven by the growing popularity of precast concrete with many construction contractors. In addition, the phase out of clay bricks will boost demand for concrete blocks.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.
