Demand for Asphalt in China to Reach 16.8 Million Metric Tons

Demand for asphalt in China is expected to rise 5.0 percent annually through 2012 to 16.8 million metric tons.  Growth will be supported by increasing construction expenditures fueled by continuing urbanization and modernization in China.  In particular, nonbuilding construction spending will be the leading driver of asphalt demand growth going forward.  Central and local governments will continue to invest extensively in asphalt consuming infrastructure projects such as highway and other paved surface construction.  China has run a trade deficit in primary asphalt over the past ten years and will continue to depend on asphalt imports to meet domestic needs.  Asphalt imports are expected to account for 30 percent of total demand in 2012.  These and other trends, including market share and product segmentation, are presented in Asphalt in China, a new study from the Beijing office of The Freedonia Group, Inc., a Cleveland-based industry research firm.

Asphalt consumed in the manufacture of paving products in China is forecast to increase 5.4 percent annually through 2012 to 12.8 million metric tons.  Rising expenditures on new road construction, as well as the maintenance and repair of a large and rapidly expanding stock of paved roads, will boost paving asphalt demand. 

Demand for asphalt used in roofing products in China is expected to expand 4.0 percent per year through 2012 to 3.9 million metric tons.  Growth will be driven by increases in building construction expenditures.  Asphalt shingles represent the fastest growing material used in sloped-roof applications in China, and will benefit from the ongoing Flat to Slope roof conversion project.  Rising construction expenditures on residential, office and commercial, and industrial buildings will benefit demand for low-slope asphaltic roofing, such as modified bitumen membranes and built-up roofing.  However, short-term gains will be restricted as urban real estate markets experience a correction following a period of overheating and the Chinese manufacturing sector adjusts to lower levels of global demand.

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.