According to the latest forecast from the Portland Cement Association, cement consumption will continue to grow in 2013, rising by 6.2%. Accelerated consumption has been predicted for 2H13, when market recovery is largely expected to take place. This rise in demand is likely to continue into 2014, with the PCA projecting 9.2% growth.
The PCA has also revised its projections for 2015 – 2017. Annual growth of 11.1% is expected over the period and consumption is predicted to reach 120 million t by 2017.
The recession has led to pent-up demand for both consumer products and construction, with housing starts estimated to reach almost 1 million this year. Multifamily construction has also experienced growth. A 36% increase in multifamily starts was recorded in 2012 and 29% growth is predicted for 2013.
“Recessions correct imbalances generated during boom periods,” stated PCA Chief Economist Ed Sullivan. “Few economists doubt the generation of a large pent-up demand during the past several years. The question is, when the economy will unleash its potential for strong growth?”
“Although nonresidential and residential will be in full recovery in 2013, public construction will act as a drag on cement consumption this year,” continued Sullivan. “However, as the economy gains momentum in 2014, job gains will strengthen states’ fiscal conditions and support stronger construction spending.”
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/the-americas/04062013/pca_expects_accelerated_cement_consumption_growth_2h13_1004/