Global cement consumption is projected to decline marginally to 4.05 billion tons in 2018, according to CW Research’s 2H2018 update of the Global Cement Volume Forecast Report. Following a sustained slowdown in Chinese cement demand, and given the Asian giant’s weight on the overall worldwide figure, global consumption is poised to record a slim rise of almost 1 percent per year through 2023. The number increases to more than 3 percent if China is excluded.
“The global economy has been accelerating since the beginning of 2018, but the recent improvements in growth remain unevenly distributed across countries and regions. Economic prospects for many commodity exporters remain particularly challenging, and fears of future disruption to trade could lead government-driven economies to postpone investments, while higher oil prices could filter through to cramp consumer spending,” said Raluca Cercel, CW Group’s associate.
In the United States, CW Research expects cement demand to grow by 2.8 percent on a cumulative annual growth average.
According to Robert Madeira, CW Group’s managing director and head of research, U.S. cement demand is being propelled by an increase in consumer spending, reflecting a growth in residential construction. “Nevertheless, the ambitious infrastructure plans envisaged by the Trump administration remain on hold, translating into a lackluster increase in cement demand,” he said.
In advanced markets such as the United States and Western Europe, cement demand has been sustained by a steady growth in the economies – a growth whose speed is likely to ease in the upcoming years.
The cement market of Latin America is expected to display a recovery in 2018, following consecutive years of declining cement demand. During the next five years, growth will likely accelerate as the regional economy recovers. This year, Argentina has outperformed the remaining countries of the region thanks to a dynamic construction sector and large projects such as dams, highways, bridges and tunnels. To the contrary, Brazil continued immersed in political and social instability.
The Global Cement Volume Forecast Report is a biannual update on projections for cement volumes on a national, regional and global level. The forecast provides global and regional outlooks, as well as detailed perspective on 57 of the world’s most important countries’ cement consumption, production, net trade and cement production capacity. The five-year outlook presented in the benchmark study enables industry professionals to shape their perspective on markets and business priorities.
For more information on the report, click here.