US headquartered advisory, research, and business intelligence boutique CW Group has predicted a decline in cement consumption in coming years.
This finding is according to CW’s Global Cement Volume Forecast Report for 2H18. The company is reporting a projected decline of cement consumption to just over 4 billion t in 2018. This follows a sustained slow in Chinese demand for cement, which has had a significant impact on overall worldwide figures.
It is expected that global consumption of cement will record a rise of about 1% per year until 2023. However, this number increases to 3% if China is excluded from world figures. Lacking investment in real estate and infrastructure sectors, the Chinese cement market is expected to consume just over 2.5 billion t of cement in 2018, a decrease of almost 3% on the previous year.
Similarly, Middle Eastern cement consumption was found likely to decline in 2018, as Saudi Arabia and Iran struggle with overcapacity and sluggish domestic demand. However, it is expected that there will be a recovery in regional cement production over the next five years.
Africa has seen lower-than-expected growth in 2018. It is forecast that cement consumption in this region will grow by 1.6% in 2018, with an average of 3.6% growth per year until 2023.
Comparatively, cement demand in the US is expected to grow by 2.8% on a cumulative annual growth average.
“US cement demand is being propelled by increasing consumer spending, which is reflecting on growing residential construction,” said Robert Madeira, Managing Director and Head of Research at CW Group. “Nevertheless, the ambitious infrastructure plans envisaged by the Trump administration remain on hold, translating into a lacklustre increase in cement demand.”
“The global economy has been accelerating since the beginning of 2018, but recent improvements in growth remain unevenly distributed across countries and regions,” said Raluca Cercel, Associate of CW Group. “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 the cramp consumer spending.”
Read the article online at: https://www.worldcement.com/asia-pacific-rim/28092018/cw-research-forecast-a-decline-in-cement-consumption/