Cement demand growth

By Richard High29 April 2008

Demand for cement in China will rise +5.1% annually to 1.3 billion tonnes by 2010, according to a report by the US- based Freedonia Group, Cement in China.

At present China is the largest national consumer of cement in the world, accounting for close to half of the global cement consumption.

The report said future growth will be driven by healthy construction activity and the use of cement in large projects such as the South- North Water Diversion Project, the national highway system and regional development.

Average prices are expected to recover as overcapacity moderates and demand shifts to higher-quality, higher-priced Portland, specialty and blended cements.

Contractors and concrete product producers, said the report, will continue to be the largest markets for cement in China, each with just under 30% of the market.

However, demand from contractors will slow due to a Government ban on mixing concrete on construction sites.

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