Abstract
Demand in China to grow 6% annually through 2012
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.
Regional cement markets reflect differences in construction expenditures,
which in turn are driven by local trends in demographics, industrial output
and economic activity. The Central-East is expected to remain the largest
cement market in China through 2012, fueled by increases in regional
construction expenditures. However, the cement markets in the Northwest and
Southwest will grow at the fastest pace, benefiting from the government' s
Great Western Development strategy, which aims to promote investment in these
areas. Consumption of cement in the Central- North is also expected to perform
above the national average, supported by high levels of transportation
infrastructure construction and booming urban markets in Beijing and Tianjin.
Nonresidential building will remain largest end use
Nonresidential building construction will continue to represent the largest
end use industrialization in China. Nonresidential building cement consumption
will also be boosted by the construction of new production facilities as the
Chinese industrial sector focuses on more value added goods. However, demand
for cement in nonbuilding construction will outpace other construction
categories. 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.
Ready-mix concrete to be fastest growing market
Construction contractors will continue to represent the largest market for
cement, accounting for nearly one-third of total demand in 2012. However, the
ready-mix concrete market will exhibit the strongest growth, posting near
double-digit gains through 2012. Gains will benefit from government
regulations banning on-site concrete and mortar mixing. Demand for cement used
in concrete products will be driven by the increasing popularity of precast
concrete with many construction contractors. In addition, the phase-out of
clay bricks will heighten demand for concrete blocks.
Study coverage
Cement in China, a 203-page Freedonia industry study presents historical
demand data (1997, 2002, 2007) plus forecasts (2012, 2017) by product, market,
end use and region. The study also considers market environment forces,
assesses market shares and profiles more than 30 industry players.
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