With global growth facilitating positive construction trends, cement consumption is on the rise. World Cement projected in 2016 that the market for construction aggregates would grow to 51.7 billion tons in 2019, an advancement rate of 5.2 percent annually. As residential construction and infrastructure investments dominate the market, more contractors will look to the benefits of concrete drying solutions to facilitate the meeting of project deadlines, as well as ensure the quality and performance of the aggregate materials used.
Cement-Related Projections by Region
In 2016, cement production in the U.S. increased to about 2.5 million tons of masonry cement and 82.9 million tons of Portland cement. While production did not reach 2005’s record high of 99 million tons, cement sales increased substantially in 2016, according to the United States Geological Survey. Most of the cement sales were to concrete makers, as ready-mix concrete producers accounted for about 70 percent of the sales. Concrete product manufacturers accounted for 10 percent of cement sales, and contractor purchases made up about 9 percent of the sales. The top cement-producing states included Texas, California, and Missouri. The improving construction industry will continue to boost cement sales and consumption throughout North America.
China takes the lead in global cement production. In 2016, the country experienced a 2.5 percent increase in demand, producing about 2,410,000 thousand metric tons (TMT) of cement and 2,000,000 TMT clinker capacity. CemNet states that even though demand is expected to be more sluggish in 2017 because of industrial reorganization, China will continue to be the world’s top producer.
The USGS reports that India has the second-largest cement market in the world. Despite the fall in production rates between 2015 and 2016, the demand for cement in India grew by 6 percent in 2016. Incidentally, forecasters feel optimistic about its growth through 2019. Many Southeast Asia countries also experienced domestic consumption volume increases, including the Philippines, Japan, Vietnam, and Indonesia.
Cement production in Eastern Europe declined in recent years. However, a healthier construction climate and an anticipated increase in oil prices will stimulate cement-related growth through 2019. Countries in Western Europe—such as the United Kingdom, Germany, and France—will experience growth after their recent period of decline. Among the greatest producers of cement in 2016 were Turkey and Russia at 77,000 and 56,000 TMT respectively.
As Middle Eastern governments broaden and diversify their economic bases in 2017, cement demand will come from increased infrastructure spending. At the time of publication, cement consumption in the GCC approaches 100 million tons per year. In 2016, Saudi Arabia, Egypt, and Iran were regional leaders, producing 61,000; 55,000; and 53,000 TMT of cement respectively.
Demand for cement in Africa through 2019 seems optimistic. Sub-Saharan African markets experienced rapid positive growth rates, despite demand not expanding as quickly as capacity. The competition that the market created—notably in Nigeria, Ethiopia, Tanzania, and Senegal—benefited consumers, as they now enjoy a more abundant supply of cement at affordable rates.
Cement demand in 2016 faltered as consumption decreased in several key markets. Brazil, for example, experienced a 5,000 TMT drop in production between 2015 and 2016. While analysts are cautiously optimistic for 2017, they expect cement consumption to rise through 2019 thanks to government-backed affordable housing programs that will boost the residential construction industry.
Construction Drying Solutions Bolstering Cement Growth
Construction occurs every day of the year. Contractors looking to remain competitive and meet the demands of the increasing number of construction projects take advantage of Polygon’s concrete drying solutions. Temporary climate control equipment aids in concrete preparation by ensuring that ambient conditions in construction areas are optimal. The same equipment ensures that slabs have ideal humidity levels and temperatures, allowing them to dry and cure properly. The benefits of the concrete drying solutions also include preventing the need to use costly vapor sealers, avoiding costly downtime, and simultaneously drying other building materials in the space. Construction drying solutions also help ensure that contractors install flooring or surface coatings according to the manufacturer’s guidelines to maintain its warranty.
With emerging markets showing positive trends, the global cement industry is expected to experience a compound annual growth rate of 9 percent by 2020. Increases in purchasing capacity, urban populations, and residential construction will spur the demand for cement and drive growth. Meet the demand of this growth by implementing Polygon’s construction drying solutions at your sites to make your projects more dependable and efficient.